Optimizing Your Inheritance: Strategies for Managing Spanish Tax Implications

In Blasco Solicitors & Notary Public, as experts in Spanish Law, we understand that one of the most common concerns of our clients is the Tax implications when dealing with an inheritance process.

After the global COVID-19 crisis, it is notable the number of heirs reluctant to pursue their inheritance rights in Spain due to the high tax liabilities and costs involved in the Acceptance proceeding of an estate in Spain.

However, this is not entirely accurate, as media reports or television programs often fail to emphasize the various other factors influencing tax liabilities, such as the location of the assets, and the lineage relationship with the Late (split in the so-called Groups I, II, III & IV), among others.

By way of example, If the Property is located in Canary Island, since September 2023, the Canary Island Revenue applies a bonification up to 99.99% of the liability amount, to groups of relatives I, II, and III, which makes this area, the best Succession Tax placed in Spain.

In the same way, If the location of the asset is in one of these areas below, the Succession Tax would be considerably reduced:

• Andalucía
• Comunidad Valenciana.
• Madrid
• Murcia

We encourage you to contact us if you want to know more about this. We will be delighted to assist you, clarify your queries, and explain the best way to liaise regarding your inheritance matters in Spain, including estimating the tax liabilities, expenses, and costs usually involved in accepting an inheritance in Spain.