However, the tax thus calculated only represents the amount payable where:
a. The taxpayer is a relative within groups I and II above, and
b. The taxpayer’s personal wealth for the purposes of Spanish Wealth Tax does not exceed Euros 402,678.11 (approx £268’450).
For all other taxpayers, the tax calculated on the scale is multiplied by a coefficient varying between 1.0500 and 2.4000 depending on the net worth of the beneficiary or donee and depending on which group he or she falls within the categories defined above. The coefficients are as follows:
| Net Wealth of Legatee | Group | |||
| Exceeding | Not Exceeding | I & II | III | IV |
| 0 | €402,678.11 | 1.0000 | 1.5882 | 2.0000 |
| €402,678.11 | €2,007,380.43 | 1.0500 | 1.6676 | 2.1000 |
| €2,007,380.43 | €4,020,770.98 | 1.1000 | 1.7471 | 2.2000 |
| €4,020,770.98 | 1.2000 | 1.9059 | 2.4000 | |
If the legatee is unrelated, the tax payable under the scale is increased by a minimum coefficient of 2.0000 and a maximum coefficient of 2.4000. (Where the legatee’s net worth exceeds €4,020,770.98).
If the legatee is unrelated, the tax payable under the scale is increased by a minimum coefficient of 2.0000 and a maximum coefficient of 2.4000. (Where the legatee’s net worth exceeds €4,020,770.98).
Where assets pass from the deceased to Trustees and from the trustees to a beneficiary who is not related to the trustee there is a risk that the Trust will be disregarded. In such case the transfer would be taxed as a lifetime gift (in favour of unrelated persons Group IV) and the minimum multiplier would be 2.00.
Please note: The information contained in these pages is given without charge and without responsibility. It is not a substitute for proper professional advice which we shall be happy to give if so instructed.
