Inheritance tax is levied on the transfer of goods and rights between people when this transfer occurs due to the death of its previous owner, whether or not there is a will. It is characterized by being a direct, personal, subjective, progressive and self-assessed tax, although the latter may vary according to the Autonomous Community.
State regulations establish a percentage that ranges from 8.65% to 34%, to which the bonuses of each Community must then be applied. A priori, the more one inherits, the more one would have to pay.
Although the Inheritance and Gift Tax Law applies at the state level, its collection, verification and management are ceded to the Autonomous Communities. Each one can apply its own rules regarding tax rates and possible reductions in the tax base.
The calculation of the liquidation of the Inheritance Tax is complex: the hereditary estate must be calculated and distributed among the heirs. The relationship with the deceased person and the heritage of the heir person are also taken into account. Taking all this into account, a tax quota is obtained to which the deductions and bonuses of each Autonomous Community will be applied.
When starting the acceptance of an inheritance, it is important to know where this tax is paid to avoid errors when making the settlement. This tax is paid to the Autonomous Community where the habitual residence of the person who has died is located. Habitual residence is considered to be that in which the deceased person has lived a greater number of days in the five years prior to his death. And here the regional differences already begin: in the Basque Country and Navarra, only one year before death is counted.
It is important to consider the possibility that the deceased had his or her habitual residence in a community or country other than that of the person who is going to inherit. The taxation to take into account when receiving an inheritance in these cases will also be affected by the domicile of the heir. Thus, the following situations may occur:
The heirs have six months from the date of death to settle the Inheritance Tax, although an extension for another six months can be requested. The liquidation of this tax, whether it is payable or not, is prior to the distribution of the inheritance and a liquidation document must be presented as part of the documentation necessary to process an inheritance.
As we mentioned before, the variations between Autonomous Communities can be important. In this sense, there are important differences according to the Autonomous Community depending on each kinship group:
-Heirs of group 1. Descendants and adopted children under 21 years of age:
? Group heirs 2. Descendants and adoptees aged 21 or over, spouses, ascendants and adopters
? Heirs of groups 3 and 4. Second and third degree collaterals, ascendants and descendants by affinity and fourth degree collaterals, more distant and strange degrees:
