The ProblemThe UK system of (IHT) Inheritance Tax a Husband or Wife are usually an exempt Beneficiary, but in the Spanish system...
Your Husband or Wife may not be exempt from Spanish Inheritance Tax.The level of Tax payable is not a fixed rate and is determined by the relationship to the deceased, their residency status and their existing wealth in Spain. In addition the estate of the deceased could be liable to pay Inheritance Tax in their country of domicile. When you take into account Spanish death duties, Inheritance Tax, legal and agency fees, accounting fees in both Spain and the UK, and other 'incidentals'....possibly 40%, but maybe as much as 50% of the value of your property!
Spanish Inheritance Tax (IHT) in Spain differs from the UK. After an allowance (typically 15,957€) the balance is Taxed at rates from 7.65% up to an incredible 34%. It gets worse, when the inheritor is not a close relative of the deceased the Tax can increase by 140%, that means a possible top rate of 81.6%!
Can you be absolutely sure that those you leave behind will have the money to cover these costs?The harsh reality is that your Spanish property, cash in a Spanish bank or gift could become a financial burden that your loved ones simply could not afford to pay.