Im getting told that my inheritance will be taxed at 40% as a nonresident is this true and how if possible can I reduce it?
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Im getting told that my inheritance will be taxed at 40% as a nonresident is this true and how if possible can I reduce it?
Hello,
You are not the first (and won't be the last) who quotes this figure of 40%, as the are several companies who offer an illegal tax evasion service (based on the incorporation of a company in the UK to avoid paying inheritance tax in Spain) that use this figure in their sales pitch. You will find more information on the blog post Inheritance Tax: A Cynical Approach.
Having said this, although a 40% tax liability is possible (can go up to 80% in some cases) it is very rare for anyone to pay such a high tax. The average tax bill in Spain has been 13% in the last three years.
If you read the article Spanish Inheritance Tax: How much is it?, you should get a general idea on how much tax your descendants will attract when you pass away. The final figure depends on many variables, such as the particular province where the testator resides, number and age of heirs, grade of family relationship, whether the property is a primary residence or not, residency status of testator, residency status of the heirs, value of assets, etc.
My recommendation is that you talk to a qualified fiscal advisor before embarking in expensive illegal schemes (that you will soon discover you don't need).
Regards