Welcome to DAVIES ABOGADOS/SOLICITORS & BARRISTERS, where Michael Davies, an experienced bilingual Spanish lawyer specialised in handling wills and inheritance matters for foreigners since 1996, is dedicated to providing exceptional legal assistance to individuals inheriting or owning property in Tenerife, Spain.
With a deep understanding of the complex inheritance tax regulations in the Canary Islands, our goal is to help clients navigate the process seamlessly and optimise their inheritance.
Unlocking the Benefits of Tenerife’s Inheritance Tax Regulations:
The Canary Islands have their own inheritance tax regulations, allowing for unique benefits that surpass those established by the Spanish State.
At DAVIES ABOGADOS , we leverage our expertise to help you take advantage of these benefits. With the power to fix higher thresholds, different rates, and direct reductions, the autonomous communities, including the Canary Islands, prioritise close relatives of the deceased and disabled individuals.
Additionally, these regulations provide incentives for local businesses, agriculture, and the acquisition of cultural assets within the community.
Staying Up-to-Date with Ever-Changing Regulations:
Regulations surrounding inheritance tax in the Canary Islands undergo frequent updates. To ensure our clients receive accurate and effective advice, our team diligently stays abreast of the latest changes. This commitment guarantees that you benefit from the most up-to-date information at the time of your tax payment, allowing for informed decision-making and a smoother process.
Recent changes to deductions and allowances in Tenerife.
In Tenerife, the regulation for succession has recently changed.
While there was previously a general deduction of 99.9% for close relatives in successions opened before January 1, 2020, a new deduction system is now in place. The updated deductions are as follows:
Descendants younger than 21: 99.9% deduction without any limit on the amount.
Descendants over 21, as well as other close relatives (ascendants, siblings, nephews, nieces, and the spouse of the deceased): 99.9% deduction for amounts up to 55,000€.
For taxable amounts exceeding 55,000€, the deductions are now tiered as follows:
• Taxable amounts over 55,000€ up to and including 65,000€: 90% deduction
• Taxable amounts over 65,000€ up to and including 95,000€: 80% deduction
• Taxable amounts over 95,000€ up to and including 125,000€: 70% deduction
• Taxable amounts over 125,000€ up to and including 155,000€: 60% deduction
• Taxable amounts over 155,000€ up to and including 185,000€: 50% deduction
• Taxable amounts over 185,000€ up to and including 215,000€: 40% deduction
• Taxable amounts over 215,000€ up to and including 245,000€: 30% deduction
• Taxable amounts over 245,000€ up to and including 275,000€: 20% deduction
• Taxable amounts over 275,000€ up to and including 305,000€: 10% deduction
Additionally, beneficiaries aged 75 or over are eligible for an extra reduction of 125,000€. This reduction cannot be combined with reductions for disabled individuals but can be combined with other deductions.
Other Benefits for Inherited Property and Business Assets:
In Tenerife, specific reductions apply to the value of the deceased’s habitual residence. With a reduction rate of 99% and an increased limit of 200,000€,the beneficiary’s ownership period is reduced to five years. It’s important to note that the property must be located in the Canary Islands to qualify for this reduction.
Moreover, when it comes to the acquisition of an individual enterprise, professional business, or share in a company, Tenerife offers a substantial reduction of 99% of its value for beneficiaries who are descendants or spouses. The ownership period for the beneficiary is also reduced to five years,
Who Can Benefit from the Advantages offered in the Canary Islands :
This is a complex matter and we recommend you make an appointment to discus your case.
The evolution of Spanish law, influenced by the European Court of Justice resolution of 3 September 2014 (c-127/12), has led to significant developments in the rights of beneficiaries and the possibility for non -residents claiming these extra exemptions.
At DAVIES ABOGADOS , we understand the intricacies of Spanish inheritance law, and specifically the regulations in Tenerife. With Michael Davies, our experienced lawyer specialising in wills and inheritance, by your side, you can trust in receiving comprehensive legal guidance tailored to your unique situation.
Contact Michael for Exceptional Legal Support:
Contact us today to schedule a consultation over ZOOM or at one of our offices with Michael Davies, our expert lawyer, and take the first step towards securing your inheritance in Tenerife.
michaeldavies@daviessolicitors.com
