The synergies between Andorra and Catalonia and Spain are visible in the assets of their respective citizens.
At the time of death, it is necessary to process the changes of ownership of the assets in the traditional way, taking into account that Andorra is not a state which has ratified the European Regulation on Inheritance 650/2012 (RSE 650/2012).
The two most common scenarios are:
- Andorran national resident in Andorra with assets in Catalonia/Spain
Taxpayers (those who inherit) will be subject to inheritance tax by real obligation in Spain according to state law for assets located in Spain.
- Catalan or Spanish national residing in Catalonia/Spain with assets in Andorra
Taxable persons (those who inherit) will pay inheritance tax by personal obligation in Catalonia or in Spain (depending on where they have established their residence) for all inherited assets, including those in Andorra.
Please note that if the assets to be inherited are urban property, the municipal capital gains tax is also due, which consists of a single payment in the town where the property is located.
At Gabarró Advocats -Herències- we have a department specialized in international inheritances, with extensive experience with the Principality of Andorra, we provide and process the inheritance until the effective change of ownership, with the management of the Catalan or Spanish inheritance tax and, if necessary, the municipal capital gains tax.