BREXIT and Inheritance Tax

In answer to the member who asked if inheritance taxes would increases by 90% I did not know the percentage but was aware of the changes due after a possible BREXIT. I emailed a very good notary known to me for many years and they have kindly responded with the information pasted below.

Note* We are questioning the information below as believe that those who will not avail of the reductions from the autonomous regions will be those who though own property in Spain, (the beneficiaries and or the heirs) who are not legally resident in an EU member state. Suggest will not affect all others who reside in on of the 28 EU countries.

“Its very simple really!
Each of the autonomous regions in Spain have their own Inheritance Laws, which will be applied to wherever the property is situated.

In Andalucía, all european nationals, residing in the European Union, are entitled to the same deductions as the Andalucian residents. This means up to 175.000,- euros per heir, free of Inheritance Tax.
In other words, if Britain comes out of the Union, British nationals will no longer be classified as european members liable for these deductions, therefore only being entitled for the state deduction of 15.956,87 euros per heir, if they are direct descendants – this means a huge difference!!

i.e. A British couple jointly owning a property on the Costa del Sol, valued at 200.000 euros (100.000,- each per half; remember there could also be bank accounts
or car to add to the estate, too!!))

One of the spouses sadly dies leaving that half to the surviving spouse, the heir would, in fact, be potentially liable for over ten thousand euros in Inheritance Tax.
The higher the amount that is inherited, the higher the applicable tax percentage actually becomes.

Note* 2017 January 1st saw the the increase in the minimum exemption before tax increase to 250,000 for family members. We are anticipating the minimum amount to increase to 1.000.000 euros in 2018.

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.