Inheritance Tax in Málaga is a tax on acquisition of assets and rights acquired by inheritance. The deceased’s legal heir is responsible for its payment. The deadline for submission and payment of this tax is six months from the date of death of the testator.
We must emphasize that, currently, heirs who do not reside in Spain have the same consideration before the law as Residents. This regulatory change was made due to the discrimination between the situations of Residents and Non Residents. Previously Non-residents could not benefit from a series of benefits which applied to Residents, merely because of their fiscal situation. Nowadays, they can avail themselves of the benefits and reductions established by this new law. As a general rule, the law of the autonomous community where the property and assets of the deceased are located would be applied or, failing that, the law of the location in which the deceased spent most time in Spain would be applied.
This year the Law of Successions of Andalusia has undergone important modifications, from 1st January, 2018, inheritances will be exempt from taxation as long as the total amount of the assets inherited is less than one million euro. However, this change is subject to certain conditions, e.g., when the heir is a spouse, a close ascendant or close descendant and the pre-existing heritage of the heir does not exceed one million euro the exemption would be applied; Any Inheritance before 1st January, 2018 is not eligible for this exemption.
Before this amendment came into force, the limit for the exemption was 250,000 euro. With this new regulation, by increasing the limit to 1 million euro, it means that tax should be exempt in 99% of cases.
As a criticism, we should point out that there is still a group of people who will not be subject to the exemption on amounts up to one million euro, such as those who are not direct close relatives, e.g., grandchildren, cousins, friends etc.
Receiving an Inheritance in Spain can be a complex procedure requiring specific knowledge in this particular field. Each case is different, from the stipulated acceptance of the inheritance in front of a Notary, to the calculation and payment of inheritance taxes and the transferring of properties or vehicles into the heir’s name, it is necessary to know the subject in depth to avoid any future misunderstandings. We at Marbellasolicitors Group have a large team of professionals who can assist you during the process. Do not hesitate to contact us, if you have any questions on this or any other matter.
By e-mail: firstname.lastname@example.org or by phone. 952- 901- 225.
Mar Pardo Silva (Abogada)