SPANISH LAW OF SUCCESSION AND LAST WILL
Like most countries, Spain levies an inheritance tax when you leave property.
However, in Spain there are significant differences per region with regard to the exemptions and rates for the inheritance tax.
The Spanish government has drawn up national tariffs and exemptions, but the 17 autonomous regions in Spain have the power to deviate from these national regulations. These deviations are usually exemptions that are almost always in favor of the taxpayer. In Andalusia, for example, you are exempted up to 1 million Euro.
In the past, these exemptions were only valid for the inhabitants of Spain. But in 2014, Spain was patronized by the European Community. The European Court of Justice considered Spain guilty of discrimination and since then the exemptions to inheritance tax have been valid for every EU citizen.
Belgium takes into account the inheritance tax paid abroad, but does not reckon with the tax on donations.
For property, the foreign inheritance tax is deducted from the amounts due in Belgium. If you do not have to pay tax in Spain due to the Andalusian exemption, you will still have to pay tax in Belgium, according to legal regulations.
A resident of Spain must pay tax on everything he inherits, regardless of the place of residence of the deceased.
Spanish inheritance tax always applies to Spanish property, which is completely different from inheritance law. Inheritance tax is a tax. The choice for the Belgian law of succession does not change this.
Inheritance tax and heritage are a particularly complicated matter. We advise you to always consult a lawyer for this matter.
Feel free to make an appointment with us if you have any questions. We will help you with great pleasure and expertise.