UK residents in Spain inheriting UK assets

Spanish Inheritance Tax (ISD) can be due on the UK inheritance of a British Citizen living in Spain because Spanish residents are taxed on worldwide assets.

Credits in Spain though are applied against all UK inheritance tax paid which avoids double taxation.

If Spanish inheritance tax ends up higher than UK inheritance tax, you will pay the Spanish authorities the difference, however no rebate is claimable if it is the other way around.

Regional tax rates in Spain differ so there is no uniform calculation that can be made, as such, professional advice should be sought.

In Spain it is the beneficiary that pays and the amount that is owed depends on the relationship between the beneficiary and the deceased, the region in which the deceased lived and, the amount being inherited.

Any inheritance tax due must be paid in Spain within 6 months of the deceased’s death.

 For further help and advice call our UK Freephone number 0800 668 11 64 or our Spanish office number 0034 865 756 058