Inheritance Tax Deductions Castilla La Mancha

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Inheritance Tax Deductions In Castilla La Mancha

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Factors that determine Inheritance Tax Liability in Castilla La Mancha tax exemptions (if any) tax rates the wealth of the beneficiary the proximity of the relation between testator and beneficiary

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3 In recent years the central government of Spain has devolved powers to set inheritance tax rates to the regional parliaments. Inheritance Law in Spain

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4 So, while true to say that state level deductions apply in all regions (except Navarra and the Basque region) the succession laws enacted by the regional parliaments must be consulted to ascertain whether and how those state level deductions have been extended or increased. Inheritance Law in Spain

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5 Each Autonomous Community has developed the state succession laws in a particular way. Accordingly to determine an individual's inheritance tax liability we first look at those deductions that have been varied at the local level. Inheritance Law in Spain

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The regional tax deductions available in Castilla La Mancha were enacted by the Toledo parliament and in their current form are specified in Ley 09/2008 and may be summarised as follows: Inheritance Tax Law in Castilla La Mancha

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Spouses, descendants and parents of the deceased A deduction of 95% on any tax payable on account of an inheritance

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For those beneficiaries disabled to a degree greater than 65% A deduction of 95% on any tax payable on account of an inheritance

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State Level Tax deductions As these are the only special deductions that have been created by the region of Castilla La Mancha it is necessary to consider State level tax deductions

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State Level Tax deductions on income from Life Insurance: An exemption of all tax on income up to €9,195,45 Available where the beneficiary is the spouse, parent or descendent or adopted descendent

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State Level Tax deductions on income from Life Insurance: The exemption is available to each beneficiary but only once regardless of number of life insurance policies

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Deductions in transfer of Family Business Tax deduction of 99% of the value of the business To benefit from this deduction heir may be child, spouse or any relative 'to third degree of consanguinity'

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Deductions in transfer of Family Business Must maintain business for a period of no less than 5 years

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Other Reductions: As a general rule the following deductions may be made on any estate: Funeral Expenses Final Medical Expenses of the Deceased

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Other Reductions Cntd: Debts held be the deceased that are evidenced by public documents e.g. a mortgage

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Once all deductions have been applied the final amount of tax payable is determined then it is necessary to apply the relevant rate: Inheritance Tax Rates in Castilla La Mancha

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Tax Rates in Castilla La Mancha Taxable Sum Tax Payable On This Sum Any Remainder Up To Applicable Rate on Remainder (%) 0 0 7993,46 7,65 7993,46 611,5 7987,45 8,5 15980,91 1290,43 7987,45 9,35 23968,36 2037,26 7987,45 10,2 31955,81 2851,98 7987,45 11,05 39943,26 3734,59 7987,46 11,9

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Tax Rates in Castilla La Mancha Taxable Sum Tax Payable On This Sum Any Remainder Up To Applicable Rate on Remainder (%) 47930,72 4685,1 7987,45 12,75 55918,17 5703,5 7987,45 13,6 63905,62 6789,79 7987,45 14,45 71893,07 7943,98 7987,45 15,3 79880,52 9166,06 39877,15 16,15 119757,67 15606,22 39877,16 18,7 159634,83 23063,25 79754,3 21,25 239389,13 40011,04 159388,41 25,5 398777,54 80655,08 398777,54 29,75 797555,08 199291,4 en adelante 34

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Existing Wealth Once the relevant tax rate has been applied the result is multiplied by a coefficient determined by the existing wealth of the beneficiary as well as the group to which they belong: Existing Wealth Groups (In Euros) I & II III IV 0 to 390,657 1 1.5882 2 390,657 to 1,965,309 1.05 1.6676 2.1 1,965,309 to 3,936,629 1.1 1.7471 2.2 More than 3,936,629 1.2 1.9059 2.4

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Existing Wealth The Groups referred to consist of the following beneficiaries: Group I Children, including adopted children, under the age of 21 Group II All other descendants, spouses and parents Group III Close relatives such as brothers and sisters, grandparents, aunts and uncles Group IV More distant relatives

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Each year in Spain thousands of expats pay more tax on inheritance than they should - simply because they fail to follow some simple rules. Guide to Inheritance in Spain

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To find out how to deal with such issues as... The immediate steps to take when dealing with an Inheritance. How to manage an inheritance in Spain with a non-Spanish will.

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As well as... The difference between State and regional tax exemptions. How to reduce your inheritance tax bill in Spain.

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And much, much more! Download the myAdvocate Spain guide to Inheritance Tax in Spain by clicking on: Spanish Inheritance Tax

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More information and contact: www.myadvocatespain.com info@myadvocatespain.com Tel. +34 931 845 073