An example of calculation of Spanish Inheritance Tax

-       A+B, British, 62 years old each,  and Spanish residents,  own a Spanish property. They have 2 sons. Sons are not Spanish residents.

-       Both have made a “mirror Will” (A leaves everything to B, and vice versa), and when both die leave everything 50 % to both Sons.

-      It is calculated the value of the property with 300.000 EUR, but, for your information, the value to calculate will be the “catastral value” multiplied by determinate coefficients (usually 2 or 3, depending on the area). But, we can use the supplied value of 300.000 EUR to make the example:

TOTAL VALUE (i)	300.000
AJUAR DOMÉSTICO (ii)	9.000
EXPENSES (iii)	3.932,73
(ie Funeral or expatriation)
NET BASE IMPONIBLE (i+ii+iii)	305.067

CASE 1 :  A dies, and B received the inheritance. As B is Spanish resident, due to the reductions and benefits of the Spanish resident, B pays “0” IHT, in the folloiwng way:

SURVIVING SPOUSE	152.534
To multiply per 1 (if Wealth less than 390,000 EUR)
TOTAL INHERITED	152.534
a) If mother non resident
Reduction Grupo II	-15.956,87
SUB TOTAL	136.576,77
Up to 120000	15.600,00
Rest till the Subtotal 18,70%	3.099,86
TOTAL TO PAY	18.699,86
b) If mother resident
Reduction Valencia	40.000
Reduction Permanent Home	47.239
TOTAL REDUCTIONS	87.239
TOTAL TO PAY	0

CASE 2 : In case 2, A+B die, and Sons receive 50 % each. They have some reductions, but not all that they could have if Spanish residents.

SON 1
TOTAL PROPERTY/2	152.533,64
To multiply per 1 (if Wealth less than 390,000 EUR)
SUB-TOTAL BASE	152.533,64
Reduction Grupo II	-15.956,87
SUB TOTAL	136.576,77
Up to 120000	15.600,00
Rest till the Subtotal 18,70%	3.099,86
TOTAL TO PAY	18.699,86
SON 2
TOTAL PROPERTY/2	152.533,64
To multiply per 1 (if Wealth less than 390,000 EUR)
SUB-TOTAL BASE	152.533,64
Reduction Grupo II	-15.956,87
SUB TOTAL	136.576,77
Up to 120000	15.600,00
Rest till the Subtotal 18,70%	3.099,86
TOTAL TO PAY	18.699,86

Case 1 and 2, inheritors will not over pass the minimum of exemption iof 325.000 GBP in UK. So, after pay the Spanish IHT, they will not pay IHT in UK.