Reductions on the inheritance tax in Spain and specifically in Andalusia for acquisition of a company, business or shares in Spanish companies, as well as Reduction for acquisition of habitual residence.
In our previous articles (SEE… ), we have already informed you about the general reductions and bonuses on these reductions as well as additional reductions to be taken into account for the calculation of the inheritance and gift tax in Spain and specifically in Andalusia.
Reduction for acquisition of a single-shareholder company, professional businesses, or shares in a company.
Reduction of 95% for acquisition mortis causa of a single-shareholder company, professional businesses, or shares in exempt companies, by spouses, descendants or adopted children of the deceased (in case there are none, by ascendants, adopters and relatives up to the third degree) provided that they stay the owner for a period of ten years after the death of the testator.
With regard to autonomic bonuses, the aforesaid period of 10 years is reduced to 5 years, and the reduction is lowered to 99%, leaving 1% of taxations for the mere statistic purposes in case:
1) The registered office of the company is situated in Andalusia.
2) When any individuals who are not relatives, comply with the following conditions:
- A) Have an employment contract and prove that you are at least 10 years with the company.
- B) To have the management or administration liability of the company at the time of decease at least for 5 years.
Reduction for acquisition of habitual residence.
Reduction of 95% for acquisition mortis causa of the habitual residence of the deceased, by spouses, ascendants or descendants, that have lived together with the deceased during the two years prior to the decease, with a limit of 122 606.47 Euros.
They must stay owners for 10 years. The reduction percentage, as an autonomic bonus, ascends to 99.99%, with the same limits and requirements set out, provided that the house is the habitual residence of the acquiring party at the time of death of the testator. We think that taxing at a 0,01% is only done for statistic purposes to determine later onwards tax bases exempt from taxation specifically in this Community.
Contact our specialists in Inheritance and gift taxes. Our firm in Marbella, Arcos & Lamers Asociados, are at your disposal for any of your legal, tax and commercial issues.
María Teresa Arcos, lawyer in Marbella.
Wim Lamers, Economist in Marbella.
- Inheritance Marbella, Spanish Inheritance Tax, Spanish law firm, Spanish tax, Spanish Will,