Information note on Inheritance Tax for non-residents

2009-08-01

I.- APPLICABLE LEGISLATION.

Law 29/1987 (Law 29/1987), of 18 November on Inheritance and Donations Tax.
Royal Decree 1629/1991 (Real Decreto 1629/1991), of 8 November, approving the regulations on Inheritance and Donations Tax.
Law 21/2001 (Ley 21/2001) of 27 December, regulating the tax and administrative measures of the new system of finance for Autonomous Communities under the Common System and Cities with Autonomy Statutes.

II.- TAXPAYERS.

All heirs, legatees and beneficiaries who do not have their usual residence in Spain are liable to this tax; residents in Spain are also liable for this tax when the person making the bequest (deceased person) did not have their habitual residence in Spain.
Usual residence is determined in accordance with the Income Tax Regulations (Legislative Royal Decree 3/2004 (Real Decreto Legislativo 3/2004)).

III.- SELF-ASSESSMENT FORM.

As a general rule, the form to be used is Form 652 “Inheritance Tax. Simplified Return”, which can be obtained from the Tax Agency Branch in Madrid, Sale of Forms section (Venta de Impresos) at C /. Guzmán el Bueno, 139, or can be downloaded directly from the Tax Agency website (www.agenciatributaria.es / templates and forms / returns / other taxes).

IV.- WHERE TO PAY.

When tax is payable, the self-assessment deposit document should be taken only to one of the financial institutions that accept tax payments (Banks, Building Societies and Credit Co-operatives), where you can pay in cash or by debiting your account.
The tax identification labels provided by the Tax Agency must be attached to the self-assessment form.
If a taxpayer who is required to make payment does not have a Tax Identification Number (NIF), they must take the following steps before requesting the labels.
Non-resident foreign national taxpayers:
They must apply for a Foreign National's Identity Number (N.I.E.), either from the Police General Directorate or a Police station that processes foreign nationals or from one of the authorised Tax Agency offices.
The documents required to apply for an N.I.E. are:

• An authenticated photocopy of the passport of the taxpayer (the heir).


• A photocopy of the Deeds of Acceptance of the Inheritance.



• A N.I.E application form.


• In the event of a taxpayer acting through a representative, the authorisation or power of attorney.

Non-resident Spanish taxpayers:
They must apply for a Tax Identification Number (N.I.F.) from a branch of the Tax Agency by presenting the following:

• A Certificate from the Spanish Consulate in the country where you live, stating that you are registered on their Register of Spanish citizens.


• An authenticated photocopy of the consular passport of the taxpayer (the heir).

V.- WHERE TO FILE THE RETURN:

Once the tax has been paid, in cases where there is tax to pay, or even where the tax due is negative, Form 652 for self-assessment should be sent with the relevant documents as shown in the next section to the Special Branch of the Tax Authority of Madrid, Document Reception (Recepción de Documentos). Guzmán el Bueno,139, 28071, Madrid).

VI.- DOCUMENTATION TO PRESENT.

Compulsory documentation:

• The original and a certified copy of the Deeds of Acceptance of the Inheritance.


• In the absence of this, the Inventory of Assets and Heirs, in duplicate, showing the identifying details of the person making the bequest and the heirs, an address for correspondence, a detailed list of the assets and rights included in the inheritance with the value of each at the date of death, together with any charges, debts or costs, the deduction of which is being sought.



• A copy of the Death Certificate.


• A copy of the Certificate from the General Registry of Wills and Testaments.


• A copy of the Will or the Declaration of Heirs.

Other documentation to provide, if relevant:

• A copy of the IBI (Property Tax) bill and of the deeds of acquisition of the property, or in the absence of this the Property Register Certificate.


• A copy of the insurance contract or a certificate from the insurance agency.



• A bank certificate showing the balances in all accounts and deposits and/or securities deposited at the date of death.


• Documentary evidence of the costs, debts, taxes and charges that might be deductible, together with the age of the heirs.


• A copy of the passport, identity card or certificate of Foreign National's Identity Number (NIE) of the heirs.


• Copy of the documentation of the vehicles that are the object of the inheritance (technical specifications, driving licence).

Important notice
If the documents were issued by civil servants or authorities in other countries, they must be accompanied by the Hague apostille and a sworn translation of the documents.

VII.- FILING DEADLINE.

In the case of acquisitions resulting from death, including those of beneficiaries of life insurance policies, the filing deadline is 6 months from the date of death.

VIII.- REQUEST FOR THE ADMINISTRATION TO CALCULATE THE TAX PAYABLE.

If the taxpayer does not choose the option of self-assessment, they may opt, in the period indicated in the previous section, to request that the Administration calculates the tax for them.
In this case, they should send the form requesting that the tax be calculated, accompanied by the documentation detailed in section VI, to the following address: Delegación Especial de Madrid de la Agencia Estatal de Administración Tributaria. Oficina Nacional de Gestión Tributaria. Sucesiones no Residentes. C/ Guzmán el Bueno, 139. 28071 Madrid.

THE CONTENT OF THIS NOTE IS FOR INFORMATION PURPOSES ONLY. IT DOES NOT CONSTITUTE BASIC LEGISLATION AND CANNOT BE INVOKED IN ANY POSSIBLE DISPUTES WITH THE TAX AGENCY.