There is no Treaty on double imposition avoidance on Inheritance Tax between Spain and the UK. Just with Greece, France and Sweden. I wonder why? 🙂
Article 9.1 of the Spanish Civil Code states that the law applicable to mortis causa transmissions ( transmission by death) is that corresponding to the nationality of the originator, but British Law states that it is the Law in the country where the asset is situated, i.e. Spain.
If you can allegate (in the UK system) that you have already paid the tax related to that asset in Spain and therefore you are not liable of taxation for the Spanish Asset in the UK. … But that is the mission of a UK international taxation specialist.
I confirm that in most of the Autonomous Communities the INheritance Tax is becoming almost inexistent under certain requirements:
– Wealth of the originator under 500.000 euros .
-The individual share of the inheritor under 125.000 €
– Relatives: the originator muct be spouse, descendant or adopted, ascendant or adopter, or equivalent family relationships under the Andalusian Legislation
– Wealth of the tax liable person not over 402.678,11 €
This reductions are compatible with National Reductions.