Inheritance Tax abolition in Spain. Work in Progress...
This morning I was reviewing the current status of Inheritance Tax in Spain, in light of the recent news regarding the abolition of the Wealth Tax after the general elections.The Wealth Tax is administered by the regional entities, Comunidades Autonomas, but legislated nationally by the national government.
This is also the case with the Inheritance Tax. What we have seen however is that the move on this tax has started by the regions by improving the position or even technically abolishing the tax itself. In this case, they did not wait for the central government to act.
Ten regions have already abolished this tax in the context of family inheritance. The regions are Madrid, La Rioja, Murcia, Castilla y León, Comunidad Valenciana, Baleares y Cantabria, in a first move and Canarias, Aragón y Castilla La Mancha in a second move. Andalucia is considering this move too, and again, that will depend on the regional elections this year.
We welcome the move toward abolition of the Inheritance Tax and the Wealth Tax in a system overload with income, indirect duties and VAT.
We own a holiday home in andalusia. We employ someone to fill in our tax returns. I enquired as to why this years total wealth tax was 100 euros less than the prvious two years(50 each). They claim that the way of calculating the tax has changed. Is this correct. Nothing on our part has changed.
After reading the information about Spanish wealth tax abolition for 2008 I am a little confused about the inheritance tax situation in Spain. Does your article mean that the areas mentioned have abolished inheritance tax, or is it just for family members and are spouses included as a family member.
Thanking you. Carol