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Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 2856
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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In this case, if the mother-in-law sent 650000 euros to her

Customer Question

In this case, if the mother-in-law sent 650000 euros to her daughter who lives and is a legal alien in the USA, do you happen to know how much tax the mother in law would have to pay in taxes in Spain? Also, would you happen to know the best way to get the money in the USA with least amount of Spain taxes on mother in law? Thanks!
Submitted: 1 year ago.
Category: Tax
Expert:  Barbara replied 1 year ago.
Welcome to Just Answer. My name is ***** ***** it will be my pleasure to assist you with your tax question today.
Inheritance and Gift Tax (IGT) is payable by the recipient (your daughter) of the assets at rates of between 7.65% and 34%. Residents are taxed on their worldwide assets and non-residents are only taxed on the assets and/or rights located in Spain. The amount of tax paid depends upon the value of assets received. Tax rates are subject to a further multiplication factor (ranging from 0.5 to 1.4) based on the relationship of the recipient to the donor or deceased, and the existing wealth of the recipient.
Although IGT is controlled by each Autonomous Community, there has been a general trend towards full or almost full exemption in recent years for Spanish resident taxpayers making transfers to descendents and spouses. These improvements may be extended to non-residents under pressure from the EU.
http://www.expatfinancialadvicespain.com/#!spanish-tax-facts-2013/c24ps
http://www.spanish-living.com/inheritance-tax
Please let me know if you require further information or clarification.
Thank you and best regards,
Barb