Castilla León

Inheritance tax Castilla León

Castilla León has its own inheritance tax regulations as a result of the Spanish State ceding the tax revenue of inheritance and gift tax to Comunidades Autónomas, along with some regulatory autonomy to adapt tax to the particular circumstances of the respective Comunidad Autónoma.

This means that most Comunidades Autónomas have ruled new (and huge) benefits compared to those established by the Spanish State.

While the tax scheme and regime is the same in all parts of Spain, the Comunidades Autónomas took advantage of the given power to fix higher thresholds, or different rates or direct reductions on the amount to be paid (and sometimes all of these) to benefit close relatives of the deceased or disabled people. There are also benefits that help promote local business, farming, etc. as well as in the acquisition of the Comunidad Autónomas’ cultural assets.

However, the Comunidades Autónomas change their regulations quite frequently so it is necessary to check the regulation in force at the time the tax is due (the day of death).

In Castilla León there are tax allowances for ascendants, descendants and spouses that are more beneficial than those offered by the State Law.

The benefit consists of a reduction of the value of the individual acquisition to be taxed and could amount to, at least, 400.000 €. It could be higher depending on which benefits the tax payer can apply. There are extra advantages for acquisitions by disabled people. This can reach 225.000 € for beneficiaries with a disability of 65% or over and the same applies to disabled people who have been declared disabled by a civil court. ( declaración de incapacidad). All these allowances are already accounted for in the calculator

Unmarried couples have the same rights as married couples provided a minimum of two years of common living have passed prior to the opening of the succession and inscribed in Registry of “ Parejas de Hecho”

For the acquisition of an individual enterprise, professional business or share in a company in Castilla León the reduction reaches 99% of its value and the time of ownership by the beneficiary is reduced to five years.

  • The question now is who can take advantage of these benefits:

  • If the deceased was a resident in Spain, the inheritance tax law of Castilla León is applicable if the deceased lived there for most of the five years immediately prior to death.

    If the deceased had lived longer in another Comunidad Autónoma than that in which they had their last residence, within this last five year period, that Comunidad Autónoma’s rule will be applied.

    If the deceased was a resident in Spain, but for less than five years at the time of death, no Comunidades Autonomas Law will be applicable, BUT Spanish State Law will be applied.

  • If the deceased was a non-resident in Spain, BUT the beneficiary is, the tax payer can choose to apply the rule of the Comunidad Autónoma where the most valuable assets are located and, if there are no assets in Spain, the Law of the Comunidad Autónoma where they live.
  • In cases where both the beneficiary and the deceased were non-residents, the tax payer can choose the law of the Comunidad Autónoma where the most valuable assets are located.

    These options for non-residents, are the result of a long process that has evolved in Spanish Law since the European Court of Justice resolution of September 2014.

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