Tax representation for IHT Tax

Tax representation for IHT Tax

From the 25th of April 2023, it will become necessary by law to appoint a representative to handle affairs relating to Inheritance and Gift Tax in the following cases:

1. A taxpayer not resident in a Member State of the European Union

For the acquisition of goods and rights in Spanish territory, including monies paid out from life insurance policies when the contract has been with a Spanish insurance company, or those operating in Spain.

The representative must be Spanish or a legal representative living in Spain and must be appointed before the end of the declaration period (31 March) for the acquisition of assets and rights in Spain.

Exception:  If there are regulations in place where there is a mutual exchange of tax information and collection, the obligation is waived for states that are part of the European Economic Area but not a Member State of the European Union.

2. A taxpayer living in Spain who is liable for all taxable assets.

If the taxpayer lives in Spain and is subject to making personal tax payments on worldwide assets, it will be necessary to appoint a tax representative to deal with the Tax Administration.

This should be done after the acquisition of inheritance or financial donation when the taxpayer leaves Spain for a third state that is not a member of the European Union or the European Economic Area with regulations on mutual assistance in terms of the exchange of tax and collection information.

Read more: Your Guide to Spanish Tax

The representative should only be appointed before having submitted the document or declaration unless their return is due before the end of the regulatory period of document submission.

Note: It is necessary to advise the designated office of the representative chosen by the taxpayer.

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