Inheritance tax for siblings

vauxhall58 wrote:Does the surviving spouse pay IT if it’s a second/holiday home? Says you have to live there for 3 yrs permanently to qualify for 0% IT.

No. It has to be your primary dwelling.

AnnetteD wrote:Are step children classed as grade 2 inheritors?

No, group 3.

....

Marcliff. My primary dwelling is in England so me being a bit confused so accept my apologies but does the surviving spouse have to pay IT

vauxhall58 wrote:Marcliff. My primary dwelling is in England so me being a bit confused so accept my apologies but does the surviving spouse have to pay IT

If it's not your primary residence then yes. If two of you own the property then the survivor is deemed to inherit 50% of the value therefore will pay inheritance tax on 50% of the value. However, allowances are still granted.

In 2015 the EU ruled that countries cannot discriminate against EU residents and non EU residents and are to be taxed the same and given the same allowances. Up until then, the survivor could only benefit from the regional allowances if they were habitually resident in that region.

In 2018 the Spanish Supreme court upheld this and the survivor can now claim the allowances relevant to where the property is (if two homes in different regions then the highest value property will rule which region's rules apply).
The survivor, if married or in an official civil partnership, will be classed as Group 1 and be able to access the allowances even though it is only on half the estate.

Again, you need to contact a solicitor to work out how to do this and which is most beneficial. Inheritance (or succession tax) is virtually non existent in the Valencia Region for married couples as a group 1 inheritor is able to claim up to 95% of the tax to a maximum of 122.606. They did not scrap succession tax altogether as it would be difficult to reinstate it later so they made the allowances so high that it is virtually non existent.

Of course, Group 2, 3 and 4 inheritors will pay.

Also remember this tax is set by the autonomous region. If PP get in later on, they are proposing that inheritance tax is abolished along with the wealth tax. Mind, they are also saying you will be able to claim tax back on dental and optician fees as well. Could just be manifesto promises.

marcliff wrote:

AnnetteD wrote:Are step children classed as grade 2 inheritors?

No, group 3.

Ok thanks.

Thank you very much indeed . I am going to print that off so I can refer to it any time.