A decent will can save you a lot of money:
Question
My brother an myself (residents in Málaga). I have received an inheritance from my father of 200000 euro and my brother 150000 euro . Our solicitors says my brother has no tax to pay but that I have a bill of twenty eight thousand euro. This does not seem fair .Surely this is not correct ?
Answer
I am afraid it is.
As you are both residents in Andalucia your solicitor is claiming for your brother an extra exemption (please note that each region of Spain has created extra exemptions above the general national ones ) that established that if a group 1 or 2 heir (which is spouse and direct descendants) receives an estate of less than one hundred and seventy-five thousand euro it is exempt.
Unfortunately as you have received more than this amount you are not entitled to the exemption and on the general system you are only allowed sixteen thousand euro allowance with the result above.
Remember that in Spain the system is very different than in the u.k. In Spain it is not the estate that pays the tax . It is each beneficiary that pays tax (depending on varios factors like where in Spain he lives , relationship with the deceased etc. ) making the distribution of the estate very important for the resulting total tax bill.
This is why it is so important that your will is drawn up by someone that knows what he /she is doing as these matters are very simple and can easily by foreseen when the will is drawn up.
For information about our will writing service
Michael Davies.
Abogado.
Michael Davies is a Spanish Abogado and ex-honorary British consul , specialised in Spanish inheritance matters and Inheritance related litigation and has been practicing law in Andalucia since 1993. He is member of the Law societies of Almería and Madrid.
