Inheritance Tax Deductions 
Alicante Province
Inheritance Law in Alicante 
This presentation has been updated and is valid for 2014. 
Changes in 2014: 
1. Increase of p...
Inheritance Law in Alicante 
This presentation has been updated and is valid for 2014. 
Changes in 2014: 
2. Group II dedu...
Inheritance Law in Alicante 
There are special regional tax deductions and exemptions 
passed by the regional government i...
Inheritance Law in Alicante 
If you have NOT been resident in the Valencia region then, 
when determining your inheritance...
Click On The Following Link For Ideas on 
How to Reduce Your Inheritance Tax: 
8 Steps That Could Dramatically Reduce Your...
Inheritance Law in Alicante 
The central government exemptions and deductions are not 
as generous as the regional exempti...
Inheritance Tax Law in Alicante 
The regional level exemptions available in Alicante were 
enacted by the Valencia parliam...
Personal Exemptions 
Spanish Inheritance law first assigns beneficiaries to groups 
according to the degree of kinship wit...
The following are the personal exemptions available in 
Alicante: 
Deduction 
Group I Exemption of €100,000 plus €8,000 pe...
If the beneficiary is disabled: 
An exemption of €240,000 additional to any personal 
exemption if mental disability > 33%...
Deductions in transfer of Family Business 
Tax exemption of 95% of the value of the business 
Should be children or spouse...
Deductions in transfer of Family Business 
If no child or spouse any relative 'to third degree of 
consanguinity' may bene...
Inheritance of the Family Home 
Exemptions exist for child, parent and spouse of the 
deceased with a value up to 95% of v...
State Level Tax deductions on income from Life 
Insurance: 
An exemption of all tax on income from a life insurance policy...
State Level Tax deductions on income from Life 
Insurance: 
The exemption is available to each beneficiary but only once 
...
Other Deductions: 
As a general rule the following deductions may be made on 
any estate: 
Funeral Expenses 
Final Medical...
Other Deductions Cntd: 
Debts held be the deceased that are evidenced by public 
documents e.g. a mortgage 
18
Tax Rates in Alicante 
Once the final amount of tax payable is determined then it 
is necessary to apply the relevant rate...
Tax Rates in Alicante 
Taxable Sum Tax Payable 
On This Sum 
Any Remainder 
Up To 
Applicable Rate on 
Remainder (%) 
0 0 ...
Tax Rates in Alicante 
Taxable Sum Tax Payable 
On This Sum 
Any Remainder 
Up To 
Applicable Rate on 
Remainder (%) 
6264...
Existing Wealth 
Once the relevant tax rate has been applied the result is 
multiplied by a coefficient determined by the ...
Existing Wealth 
The Groups referred to consist of the following beneficiaries: 
Group I Children, including adopted child...
Probate Services in Alicante 
To find out how to get expert advice, in English, about how to 
reduce your liability for in...
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Inheritance tax deductions valencia

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Find out how to reduce your inheritance tax liability in Valencia, Spain.

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Inheritance tax deductions valencia

  1. 1. Inheritance Tax Deductions Alicante Province
  2. 2. Inheritance Law in Alicante This presentation has been updated and is valid for 2014. Changes in 2014: 1. Increase of personal exemption from 40,000€ to 100,000€ for Group I beneficiaries + 8,000€ for each year under 21 (up to a max. of 156,000€) 2
  3. 3. Inheritance Law in Alicante This presentation has been updated and is valid for 2014. Changes in 2014: 2. Group II deduction increases to 100,000€ 3. 95% deduction of value of family home up to a value of 150,000€ for specified beneficiaries 3
  4. 4. Inheritance Law in Alicante There are special regional tax deductions and exemptions passed by the regional government in Valencia that only apply to those beneficiaries who have been resident in the region. 4
  5. 5. Inheritance Law in Alicante If you have NOT been resident in the Valencia region then, when determining your inheritance tax liability, you may only apply the deductions and exemptions approved by the CENTRAL government. 5
  6. 6. Click On The Following Link For Ideas on How to Reduce Your Inheritance Tax: 8 Steps That Could Dramatically Reduce Your Spanish Inheritance Tax Bill 6
  7. 7. Inheritance Law in Alicante The central government exemptions and deductions are not as generous as the regional exemptions. This has caused complaints that the inheritance tax laws in Spain are discriminatory against non-residents. 7
  8. 8. Inheritance Tax Law in Alicante The regional level exemptions available in Alicante were enacted by the Valencia parliament and in their current form are specified in Law 13/1997. 8
  9. 9. Personal Exemptions Spanish Inheritance law first assigns beneficiaries to groups according to the degree of kinship with the deceased: 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 9
  10. 10. The following are the personal exemptions available in Alicante: Deduction Group I Exemption of €100,000 plus €8,000 per year under the age of 21 up to a maximum of €156,000. A further reduction of 75% for this group if residents as per legal definition. Group II Exemption of €40,000. A further reduction of 75% for this group if residents as per legal definition. Group III No deductions available Group IV No deductions available 10
  11. 11. If the beneficiary is disabled: An exemption of €240,000 additional to any personal exemption if mental disability > 33% or physical > 65%. A discount of 99% is applied to any inheritance tax payable by any beneficiary with a physical disability > 65% or mental disability > 65% 11
  12. 12. Deductions in transfer of Family Business Tax exemption of 95% of the value of the business Should be children or spouse to inherit to benefit from the deduction 12
  13. 13. Deductions in transfer of Family Business If no child or spouse any relative 'to third degree of consanguinity' may benefit from exemption Must maintain business for a period of no less than 5 years 13
  14. 14. Inheritance of the Family Home Exemptions exist for child, parent and spouse of the deceased with a value up to 95% of value up to max of €150,000 per beneficiary 14
  15. 15. State Level Tax deductions on income from Life Insurance: An exemption of all tax on income from a life insurance policy up to €9,195,45 Available where the beneficiary is the spouse, parent or descendent or adopted descendent 15
  16. 16. State Level Tax deductions on income from Life Insurance: The exemption is available to each beneficiary but only once regardless of number of life insurance policies 16
  17. 17. Other Deductions: As a general rule the following deductions may be made on any estate: Funeral Expenses Final Medical Expenses of the Deceased 17
  18. 18. Other Deductions Cntd: Debts held be the deceased that are evidenced by public documents e.g. a mortgage 18
  19. 19. Tax Rates in Alicante Once the final amount of tax payable is determined then it is necessary to apply the relevant rate: 19
  20. 20. Tax Rates in Alicante 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 7668,91 8,5 15662,38 1263,36 7831,19 9,35 23493,56 1995,58 7831,19 10,2 31324,75 2794,36 7831,19 11,05 39155,94 3659,7 7831,19 11,9 46987,13 4591,61 7831,19 12,75 54818,31 5590,09 7831,19 13,6 20
  21. 21. Tax Rates in Alicante Taxable Sum Tax Payable On This Sum Any Remainder Up To Applicable Rate on Remainder (%) 62649,5 6655,13 7831,19 14,45 70480,69 7786,74 7831,19 15,3 78311,88 8984,91 39095,84 16,15 117407,71 15298,89 39095,84 18,7 156503,55 22609,81 78191,67 21,25 234695,23 39225,54 156263,15 25,5 390958,37 79072,64 390958,37 29,75 781916,75 195382,76 En adelante 34 21
  22. 22. 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: Pre-existing Wealth Groups In Euros I y II III IV From 0 a 390.657,87 1 1,5882 2 From 390.657,87 to 1.965.309,58 1,05 1,6676 2,1 From 1.965.309,58 to 3.936.629,28 1,1 1,7471 2,2 More than 3.936.629,28 1,2 1,9059 2,4 22
  23. 23. 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 23
  24. 24. Probate Services in Alicante To find out how to get expert advice, in English, about how to reduce your liability for inheritance tax, go to: Expert Probate Services in Alicante Province 24

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