Inheritance and Increases on Plusvalia Taxes.

Some expats appear to be unaware of the need to use a good legal representative when you lose a loved one. Unaware of the duties to be paid by the beneficiaries. Each region has its own regulations on IHT and amounts payable if at all. I have often been asked for charts describing these taxes from some in the hope of calculating amounts due. I am personally against following these as each case must be treated on individual merits and aids in often mitigating these taxes.

I have received a letter from an heir who lost a partner and unfortunately, was not aware of the obligation to pay the plusvalia (tax town hall tax) which is a tax apart from IHT. This pensioner has now been left with an unexpected expensive plusvalia tax to pay. To make matters worse, the amount payable is increasing daily. These increases can amount to 100 euros or more daily.

All heirs are allowed six months to pay the plusvalia. Should one need an extension to pay these taxes, the application must be made in writing with a stamped copy retained. An extension will be granted facilitating staggered payments. The interest is nominal. This is not the case the appeal for the extension has not been solicited, the interest will begin to accrue daily. In this particular case, the person in question is paying an amount daily. This does not halt the expensive surcharges and interest being added daily. This would not have been the case if as stated earlier, an extension had been applied for before the final period of payment.

For further information, please email Myra

myra@citizensadvice.org.es

Please note: The information provided is based upon our understanding of current legislation. It is not legal advice but is provided freely to enable you to be properly informed. We recommend that if you are considering taking action, you should seek professional advice.