INHERITANCE TAX FOR NON-RESIDENTS IN SPAIN
When we talk about non-resident heritages in Spain, we have several doubts that we have to resolve before entering to analyze the taxation in depth.
The first of the questions we must solve is:
One of the first questions that we must solve is whether the heirs of non-residents are obliged to pay for the inheritance tax in Spain.
The answer is yes, except if these two situations occur:
1. The heirs (they are the taxpayers), were also non-residents in Spain at the time of the decedent's death and
2. That there is no any property located in the inheritance Spain.
Therefore, if these two situations occur, the inheritance will not be taxed in Spain by the Spanish Inheritance Tax (regardless of whether it should be done it in another country).
The second of the questions:
The second of the questions before us is the assumption that the deceased is resident in Spain, but the heirs do not:
When the deceased had his/her residence in Spain at the time of his death, then in this case the non-resident heirs must be taxed by the Spanish inheritance tax, unless there is no property located in Spanish territory, so in that case the inheritance would not be subject to inheritance tax in Spain.
The third of the questions is:
Which would be the Tax Authoriy in charge of processing the tax in the event that the deceased and / or the heirs are not residents of Spain:
As long as the heirs and the decedent are not residents of Spain, then the inheritance tax must be processed before the Spanis Central Tax Authorities instead of before the Andalusia Tax Authorities. Specifically, it must be processed through the “Agencia Estatal de Administración Tributaria”, and more specifically the “Oficina Nacional de Gestión Tributaria”.
Taking the above into account, it should be noted that only when the deceased has had his/her residence in Andalusia and his/her heirs were residents in Spain, either in Andalusia or another Spanish region, then Will be the Andalusian Tax Authorities the administration in charge of processing the inheritance tax, applying for therefore the Andalusian inheritance law.
Do not hesitate to contact our law firm if you have any questions regarding to the Andalusian inheritance Tax for non-residents or to the Spanish inheritance Tax for non-residents, our team of experts lawyers will be happy to advise you and carry out all the relevant procedures the Heritage.