Marbella Town Hall Approves Tax Reduction on Main Home Inheritance Transfer

Raymundo Larraín Nesbitt, October, 21. 2016

Hot on the tail of the Junta de Andalucía’s news to reduce the regional Inheritance Tax (featured in last month’s article on Inheritance Tax Novelties in Andalusia & FAQ on IHT in Spain) various town halls have jumped on the band wagon to apply their own reductions in Andalusia. As previously explained, town halls have devolved competencies on some minor aspects of IHT which allows them a certain degree of flexibility.

Amongst them is Marbella’s Town Hall which has taken the mantle onto itself to lower the Plusvalía tax that is borne on the estate transfer to heirs. In simple English this means that inheritors stand to pay less taxes on inheriting estates in Marbella – good news. The catch (bummer - why has there always got to be one?) is that it only applies to main homes; and low valued homes at that. In other words, it applies to permanent abodes.

The fiscal changes follow a sliding scale with an inverse correlation; the higher the value, the less the reduction:

95% reduction for main homes < €125,000
50% reduction for main homes > €125,000 < €200,000
20% reduction for main homes > €200,000 < €300,000

A reduction on the tax burden is always a welcome respite. As I always tirelessly point out in all my articles and blog posts, lowering the tax burden is the right way out of a recession as it fosters the attraction of foreign investments, kick-starts the local economy and spurs job creation.

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Larraín Nesbitt Lawyers is a law firm specialized in inheritance, conveyancing, taxation and litigation. We will be very pleased to discuss your matter with you. You can contact us by e-mail at info@larrainnesbitt.com, by telephone on (+34) 952 19 22 88 or by completing our contact form.

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Non-residents: Six Advantages of Making a Spanish Will – 8th August 2012
Buying and Owning Spanish Property through Companies: Pros and Cons – 7th March 2014
Taxes on Selling Spanish Property – 8th December 2014
Spanish Wills and Probate Law in light of European Regulation 650/2012 – 8th January 2015
Changes to Spain’s Inheritance and Gift Tax Law – 21st February 2015
Dispelling Spanish Inheritance Tax Myths – 8th August 2015
Spanish Inheritance Tax for Non-residents (Part I) – 21st February 2016
Spanish Inheritance Tax for Non-residents (Part II) – 8^th March 2016
Inheritance Tax Novelties in Andalusia & FAQ on IHT in Spain – 8th September 2016

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