In Spain there are many autonomous regions and inheritance tax allowances are different depending on the region where the inheritance assets are situated or where the inheritor is fiscally resident.
If the inheritor is resident in the Canary Islands or the assets are situated in this region, Canary Islands inheritance tax allowances are applicable. Since January 2016 a 99.9% inheritance tax allowance is applicable to children, parents and the spouse (Groups I and II) – the same allowance had been applicable from the year 2008 to July 2012 – and in 2019 the region extended this allowance to siblings, nephews, uncles and stepchildren (Group III); as a consequence no inheritance tax is due or a very small amount needs to be paid when assets are inherited from family members.
As the Spanish Supreme Court has declared that the allowances apply to the benficiaries of Spanish assets wherever they may reside, we understand that Brexit will not affect this beneficial inheritance tax regime.
Unfortunately the 99.9% allowance was not extended to Group III in respect of donation tax and this allowance is only applicable to Group I and II as from the year 2016 (if the donation is declared in a Notary deed). For more information or a consultation call us on 922 719520 or email [email protected]