As An Example This Year – Inheritance Tax Threshold Set To Increase

Jun 24, Investment, 0 comments

It appears that Cuidanos and the PSOE have come to an agreement regarding the inheritance threshold.

These reforms, plus a few about agricultural businesses will cost the Junta around 125 million euros in revenue. The new regulation, that has just been announced will come into force in January 2017. It will be mentioned that although these taxes are national, they are delegated to the autonomous regions who are entitled to set their own rates. Junta expects to receive 500 million euros in inheritance and gift taxes, as an example this year. That people who inherit less than that amount from their parents and similar direct relatives shan’t have to pay tax on their Costa del Sol property, the Junta de Andalucia is set to raise the threshold for inheritance tax from 175000 to 250000.

Currently inheritance tax is payable on any inheritance worth more than 175000 in Andalucia, and if you stood to inherit more than that you were taxed on the full amount. As of January you shouldn’t be taxed on the first 200000 for those who inherit assets or property worth between 250000 and 350000 euros. Thebeneficiary must be a descendent, ascendent, collatoral relative or over the age of 65 and must have lived with the deceasedfor at least two years. Agreement includes a reduction in the tax base from 100 to 95 if the property is a the main residence of the person who isin inheriting it. Consequently, this tax free amount will rise from 122606 euros to over 242000 euros.

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