RCH Legal Abogados Marbella, update on Inheritance Tax Law in Andalusia

Update regarding Inheritance Tax Law in Andalucía

Who must pay the inheritance tax?

The heirs and the legatees have to pay the inheritance tax.

Example for distinction between heirs and legatee: The heirs receive the general estate, but the legatees have a prior right to receive specific goods from the estate without being heirs.

New Legal situation in 2018, tax exemption was increased to 1.000.000,- €.

Before January 2018, the estates until 250,000,- € were free of inheritance tax.

In 2018, the tax exemption has been increased up to one million euros (1.000.000,- €) per heir or legatee.

The estate in Andalucía is free of tax under the following conditions:

If the heir or legate is a child, parent or a spouse of the testator

and

If the assets of the heir are not superior than 1.000.000 €

In case the value of the estate is more than 1,000,000,- €, the tax is calculated over the difference between 1.000.000,- € and the value of the estate. Until 2017, the Inheritance tax was payable over the whole value of the estate.