Setting out the main deductions allowable for beneficiaries of an inheritance when residents of the region of Aragon, Spain

1. Inheritance Tax Deductions
In Aragón
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2. Inheritance Law in Aragón
This presentation has been updated and is valid for 2014.
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3. While in most autonomous communities in Spain matters of
inheritance are regulated by state legislation, Aragón is one
of the few that has retained competency to legislate
completely in this area – Article 3 Law 28/1990.
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Inheritance Law in Aragón

4. Inheritance Legislation in Aragón
The regional level deductions available in Aragon were
enacted by the parliament in Zaragoza and in their current
form are specified in Legislative Decree 1/2005 as modified
by Law 19/2006, Law 8/2007, Law 11/2008 and Law
12/2010.
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5. Inheritance Tax Deductions in Aragón
The following categories of exemption are the most important
and likely to be of general application:
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6. If the beneficiary is disabled
A deduction of 100% may be applied to any beneficiary with
a disability classified to be of a degree greater than 65%
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7. If the beneficiary is below the age of majority
A deduction of 100% may be applied to any beneficiary who
is under the age of majority
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8. Deductions in transfer of Family Business
 Tax deduction of 99% of the value of the business
 Must be children or spouse to benefit from the deduction
 Only if no spouse or children may apply deduction to any
relative 'to third degree of consanguinity'
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9. Deductions in transfer of Family Business
 The business may not be sold by the heirs who benefit
from this deduction for a period of 5 years
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10. Inheritance of the Family Home
The spouse, descendants, parents or any elderly relative
who has lived with the deceased for two years prior to
their death may deduct 99% (Law 19/2006) of the value of
the main family home that they each inherit up to a limit of
125,000€
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11. Inheritance of the Family Home
The property may not be sold for a period of 5 years after
the inheritance. The limit to this deduction is set at
€125,000 by Article 3(1) of Law 12/2010.
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12. Special Deduction in the Taxable Sum for
Specific Beneficiaries
Where the beneficiary is the spouse, child or parent of the
deceased then a deduction may be made of 100% of the
amount remaining after deductions, including income derived
from a life insurance policy held by the deceased where:
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13. Special Deduction for Specific Beneficiaries
1) where the total amount of all other deductions (excluding life
insurance policies) does not exceed €150,000
2) the total amount of this deduction, excluding income from a
life insurance policy shall be no greater than €150,000
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14. Special Deduction for Specific Beneficiaries
3) Should the deceased have left children who are minors then
the amounts specified may be increased by a further €150,000
4) If a child predeceases their parent then any deduction may be
passed to any grandchildren
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15. Special Deduction for Specific Beneficiaries
5) If any of the beneficiaries are disabled to a degree greater
than 33% and less than 65% (as per statutory definitions) then
the amount of the deduction may be increased to €175,000
6) The total pre-existing net worth of the beneficiary is under
€402,678
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16. Special Deduction for Specific Beneficiaries
7) This deduction will not apply if the beneficiary has received a
gift from the deceased in the period 5 years prior to the date of
death, unless the gift was below 150,000€ in value (with a
percentage of such gifts deductible if made with the objective of
creating a business
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17. Other Special Deductions:
A general discount of 50% of the taxable base subject to
inheritance tax will be applied in 2014 to all beneficiaries in
Groups I & II, rising to 100% in 2015.
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18. Other Deductions:
As a general rule the following deductions may be made on
any estate:
 Funeral Expenses
 Final Medical Expenses of the Deceased
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19. Other Deductions cntd:
 Debts held be the deceased that are evidenced by public
documents e.g. a mortgage
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20. Inheritance Tax Rates in Aragón
Once all deductions have been applied the final amount of tax
payable is determined then it is necessary to apply the relevant
rate:
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21. Inheritance Tax Rates in Aragón
Taxable Sum Tax Payable On This
Sum
Any Remainder Up
To
Applicable Rate on
Remainder (%)
0 0 7993,46 7,65
7993,46 611,5 7987,45 8,5
15980,91 1290,43 7987,45 9,35
23968,36 2037,26 7987,45 10,2
31955,81 2851,98 7987,45 11,05
39943,26 3734,59 7987,46 11,9
47930,72 4685,1 7987,45 12,75
55918,17 5703,5 7987,45 13,6
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22. Inheritance Tax Rates in Aragón
Taxable Sum Tax Payable On This
Sum
Any Remainder Up
To
Applicable Rate on
Remainder (%)
63905,62 6789,79 7987,45 14,45
71893,07 7943,98 7987,45 15,3
79880,52 9166,06 39877,15 16,15
119757,67 15606,22 39877,16 18,7
159634,83 23063,25 79754,3 21,25
239389,13 40011,04 159388,41 25,5
398777,54 80655,08 398777,54 29,75
797555,08 199291,4 en adelante 34
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23. Existing Wealth
Once the relevant tax rate has been applied the result is
multiplied by a coefficient determined by the existing wealth of
the beneficiary as well as the group to which they belong:
Existing Wealth Groups
(In Euros) I & II III IV
0 to 402,678 1 1.5882 2
402,678 to 2,007,380 1.05 1.6676 2.1
2,007,380 to
4,020,770
1.1 1.7471 2.2
More than 4,020,770 1.2 1.9059 2.4
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24. Existing Wealth
The Groups referred to consist of the following beneficiaries:
Group I Children, including adopted children, under the age of 21
Group II All other descendants, spouses and parents
Group III Close relatives such as brothers and sisters, grandparents,
aunts and uncles
Group IV More distant relatives
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25. Each year in Spain thousands of expats pay more
tax on inheritance than they should – simply
because they fail to follow some simple rules.
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26. Expert Probate Services in Aragón
To find out where to get expert advice, in English, about how
to reduce your liability for inheritance tax, go to:
Saving on Probate Services in Aragon
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