This is one of the most common errors made while liquidating the estate. You only have 6 months for the procedure to be completed from the date of death. An extension can be made to the Catalan relevant authority for an extended 6 months period. In case of failure to fulfil your obligation, different measures will be taken by the tax office. Sanctions and interests will be added to your final calculation. If needed, it’s very important to ask for additional time as a charge of up to 20% can be applied.
INHERITANCE TAX LAWYER
Resident or not you are affected by Inheritance tax (IHT) if you own any assets in Spain. Payment of this tax varies considerably upon your place of residence. Catalunya is one of the autonomous communities with the greatest requirements for payment, therefore, it’s crucial that you arrange your will accordingly in order to avoid excess payment on your departure.
IHT is also paid in cases of donations so these must be looked up carefully while dealing with your state. Tax advice is paramount in these cases as they could be subject to a double taxation if dealt with incorrectly.
At ABH our specialized inheritance lawyers will try to solve all of your doubts and queries regarding the matter.
FAQS
This is a progressive tax which takes into account the assets that make up the whole of the estate. It can be made up of properties, bank balances and other material goods such as cars, boats, jewels and any item with an economical value. In Barcelona, as part of the Catalan Autonomous Community, the tax also considers the heirs particularities. Including pre-existent wealth, the relation with the deceased or donor, and others are also taken in consideration. Proper planning must be done in order to avoid excessive payment.
One of the most important reductions you can find is based on the “blood relation” between the deceased and the heir. This relationship it’s also affected by the age of the family member at the time of death. This allowance is considered as an allowance for relatives.
Another very common allowance is the one applied to amounts received as a payment from life insurance policies. There is a maximum permitted which varies upon communities.
The home which constituted the main residence of the deceased is also subject to important reductions, although, subject to certain requirements which must be met.
Disabilities, older citizens, some types of shares, heritage and cultural assets are also subject to reduce your final bill.
If you have reached this far, we would like to invite you to give as a call so we can try to solve any further doubts you might still have. Whether you are thinking about drafting your will or you are in need of legal advice as a result of a death, do not hesitate, seek professional advice. It will save you time and money.