Spanish IHT most onerous cases are related to the transfer of large estates or assets bequeathed to distant relatives or non-family members such as friends (Group IV).
It is in both of these cases, which are a minority really,
in which the IHT liability can be high, too high, reaching even 81,6%, which is tantamount to expropriation in my opinion. Hence the need of tailored tax planning which may indeed justify setting up corporate structures, for tax mitigation purposes, on such cases.
The key to successfully mitigate Spain’s IHT is to plan ahead prior to the purchase of a property in Spain.
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