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The following table assumes that the heir’s estate is under €402,678.11
Gift & Inheritance Tax Multiplier
Euro Estate Tax Payable - Married Tax Payable – Unmarried(No €15,957 exemption)
50,000 3,083 9,898
100,000 9,838 24,831
200,000 28,250 63,282
400,000 76,898 162,038
750,000 180,397 370,288
1,000,000 262,697 536,245
2,000,000 602,697 1,216,245
5,000,000 1,622,697 3,256,245
10,000,000 3,322,697 6,656,245


It should be noted that, if the wife in her own name is worth more than €402,678.11 the tax payable is, in effect, increased by as much as 20%. Note also that this tax cannot be offset against any UK inheritance tax. There is nothing to offset against where both husband and wife are UK domiciled, since there is no UK tax payable (just Spanish tax).

Finally, there are no exempt limits for gifts in one’s lifetime; it is all taxable. However, in practice, of course, normal gifts are not taxed. Moreover, it is very much Spanish practice that any property such as furniture, pictures, etc. which is not registered (ie, most assets excluding property and cars) are given away, and no-one in Spain would file a gift tax return in such circumstances.
An Example of Spanish Inheritance Tax.

Each child inheritor can claim the standing deduction of €15,956.87. For example, if a flat or small house worth €80,000 is left to four children equally, each child inherits €20,000. Each adult child can then deduct the standard amount of €15,956.87, leaving €4,043.13 each liable to Spanish succession tax. The heirs would pay less than €309.30 Spanish succession tax each. Note, however, that the deceased is a UK domicile, the Spanish assets remain liable to UK inheritance tax, and all assets in excess of £255,000 are liable to 40% tax. Any tax paid in Spain can be deducted against the UK tax liability to avoid a double tax charge.

Responsibility to declare the death to the Hacienda
On the first death, the surviving spouse has six months to inform the authorities and pay the tax. There is an extension of up to six months obtainable by application within the first five months and this extension is deemed granted if no reply is received within one month. Note that if this is not done, and the title deeds (escritura) to the property remain in the deceased’s sole, or joint name, then it cannot be sold. There are also heavy penalties and interest for non-payment of the Spanish inheritance taxation on time.

Spanish Inheritance Tax Rates
Spanish inheritance tax is payable by the recipient. The actual tax rates payable are based on:

The relationship of the recipient to the donor (or deceased), and
The wealth of the recipient prior to the transfer (“pre-existent net worth”)

The highest real rate of tax is just under 82% on this basis, though before any multipliers the rate stands at 34%.

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