Update on Inheritance and Donation Tax in Spain and Brexit.
Old advice on Inheritance and Donation Tax after Brexit
I recently published two articles about Brexit and Inheritance Tax which you can read here and here, advising that making donations of Spanish property to spouse and children before Brexit could be a tax wise saving decision as you would benefit from the bid personal allowances of close relatives foreseen for tax residents in Spain as well as EU citizens and assuming that after Brexit the English people would be treated immediately as non EU citizens and therefore not able to benefit of that generous personal allowances and thus being liable for big Inheritance and or Donation Tax bills.
New advice on Inheritance and Donation Tax after Brexit
A recent 2018 Spanish Supreme’s Court ruling has changed dramatically the situation for good. The Supreme Court ruled that the discrimination between tax residents and non tax residents is against the freedom of movement of capital both within the EU and outside of it.
Example in the Valencian Region
In the Valencian Region the main personal allowances are as follows:
Inheritance Tax.- €100.000 for the spouse and for each child.
Donation Tax.- €100.000 for each child.
Afer Brexit British citizens will be treated the same as tax residents with regards to the Inheritance and Doantion Tax.
Thank you for your time and attention and I hope this information is of use. You are very welcome to share if you liked it.
Please, note that this is general information. This is not specific legal advice. It is advisable to seek legal advice for any specific legal issue.