Quite apart from any illegality, “clever” schemes to try and evade tax can have undesirable and costly consequences.  In particular, the practice of delaying an application for Spanish Probate until the 4 year and 6 month limitation period for the payment of inheritance tax has passed can cause misery for the beneficiaries of an estate.

In an effort to reduce Spain’s huge budget deficit brought about by the recession, taxpayers at all levels in Spain are going to be faced with a stricter regime and tax increases this year.

CAPITAL GAINS TAX
The tax on Capital Gains made on the sale of homes and other assets has increased with effect from 1st January 2010 from a single rate of 18% to 19% on the first €6,000.00 of any gain to, and on any gain above this amount to 21%.