Search:     Go  
The Spanish Lawyer Online
The Spanish Lawyer Online

Reply to Thread

Post a reply to the thread: Spanish Inheritance Tax: Advantages of Making a Will in Spain

Your Message

Click here to log in

What is two added to six?

 

You may choose an icon for your message from this list

Additional Options

  • Will turn www.example.com into [URL]http://www.example.com[/URL].

Topic Review (Newest First)

  • 09-01-2015, 11:53 AM
    A-F-W-
    It would appear no one can help then?

    Could anyone here refer a Spanish lawyer in the UK then who could help me with this question? PM me please if so.

    Thanks.
  • 08-26-2015, 10:55 AM
    A-F-W-
    Dear BeLegal,

    Could anyone here possibly advise my family on this probate/will matter.

    My mother passed away Feb 2014 while living in Spain (since 2001) and we did not know the contents of her will or if she even had one. Her legal matters were handled by a Spanish lawyer and under Spanish Law as far as I know. Her husband inherited everything and stated at the time of her funeral that it was her wish to leave a percentage of their house in Spain, when sold, to the children (of which I am one) and grandchildren. We spent an afternoon at a local UK solicitor as he said we would have to provide documentation to the Spanish lawyer as proof to who we were in regards to this matter but in the end nothing was actually needed at the time and we heard nothing more, presuming that when the house was sold it would be relevant.

    The house was sold in late 2014 and when asked about the money we were told there was no money for the family and none of the former issues mattered. We presume she had never legally documented her wishes and because of that he was not going to proceed per her wishes.

    Would there be any possibility of recovering the % of money that HE personally stated she wished the children and grandchildren to have ?
  • 08-05-2015, 02:03 PM
    Patricia
    Hello Dutch Irish,

    Our recommendation is that you wait until itīs time to inherit and not take any action now.

    The IHT in the Communitat Valenciana is exempt up to the 100K € if the beneficiaries are first grade relatives ( children, spouses, parents ). As you indicate the property is not valued in more than 100k €, you would be, in principle, exempt of IHT.

    If the beneficiaries are under 21 years the exemption is raised to assets valued up to 156.000 €.

    Please feel free to contact us by email should you wish to discuss the particular case further.

    Regards,
  • 07-28-2015, 09:21 AM
    Unregistered

    property in Spain

    Dear BeLegal,

    I have spent some time reading your very clear and comprehensive article on inheritance of Spanish property, thank you for making it easier to understand.

    I need your help and guidance. My parents and I own a villa to the value of 100keuro in the Valencia region( all3 names are on the deeds). We are Irish but I live, work and pay my taxes in Netherlands. They have no other property in Ireland or any other country only the one in Spain. They are non residence, spending ~80 days a year there. I have a mortgage ~50% of the value on the property. As they are getting older I want to look at the best course of action meaning, can they transfer the property over to me, if so what taxes would I be liable for? Should I buy them out as a cheaper option?, should I do nothing? We all have Spanish wills drawn up. Mine is left to my wife. My parents left to each other. Additionaly I have other brothers and sisters in Ireland who would not contest the house.

    Please advise!

    Best regards.

    Dutch Irish.
  • 04-06-2013, 05:25 PM
    Peter j k

    Spanish Inheritance Tax: Advantages of Making a Will in Spain

    We bought an apartment in javea alicante in 2004. We are non residents living in the UK. We have two sons over 21 years of age! The apartment is worth approximately 300,000 euros. Could you tell me what inheritance tax would we have to pay if either my wife or myself died. Also if we both die what tax would our two sons have to pay? Also as my wife and myself are retired and considering moving to Spain would that alter the inheritance tax situation. Thank you
  • 03-07-2013, 11:34 AM
    Barry G

    Spanish Inheritance Tax: Advantages of Making a Will in Spain

    Hi, My Father is a non resident spanish home owner and he wishes to start making arrangements in his will to leave his spanish property to his wife (not my mother) and eventually to me.

    I have a sibling that is not to inherit this property and my father wants to make everything as clear and easy for everyone as he can.

    What is the best way to safeguard the property for his wife, and then myself?

    And what inheritance tax burden are we likely to be liable for. The property is 3-400k Euros. The property is located in Andalucia.
  • 10-23-2012, 05:26 PM
    Tony Pride

    Spanish Inheritance Tax: Advantages of Making a Will in Spain

    Thank you for your informative article.
    My wife and I jointly own an apartment in Andalucia (valor catastral 317,000 euros). We have made Spanish wills but are not Spanish residents, our main home being in the UK.
    We want our two children (both over 21) ultimately to inherit.
    We expect there to be a Spanish IHT issue.
    Both our wills currently leave the deceased's half share split equally three ways between the surviving spouse and the two children.
    Is this the most tax efficient way? or should we simply both leave our share equally between the two children?
    Will there be a UK IHT tax issue on the childrens inheritance in addition?
  • 10-15-2012, 11:25 AM
    ifv
    Hello Liz

    Sorry for the late reply.

    In your case, for a property worth €400,000, your tax liability would be:

    Code:
    Percentage to be transfered	50%	200,000.00 €			
    					
    Heir    	Share    	Allowance	Taxable Amount  Tax Percentage	  Total Tax
    Spouse          100,000.00 €	15,956.87 €	84,043.13 €	16.15%	7,758.22 €
    Children 1	33,000.00 €	15,956.87 €	17,043.13 €	9.35%	122.21 €
    Children 2	33,000.00 €	15,956.87 €	17,043.13 €	9.35%	122.21 €
    Children 3	33,000.00 €	15,956.87 €	17,043.13 €	9.35%	122.21 €
    					8,124.85 €
    If you chose to change the will and divide in equal shares the bequeathed assets (50% of €400.000) then the resulting tax would be:

    Code:
    Percentage to be transfered	50.00%	200,000.00 €			
    					
    Heir	        Share	        Allowance	 Taxable Amount   Tax Percentage	  Total Tax
    Spouse          50,000.00 €	15,956.87 €	34,043.13 €	11.05%	1,582.77 €
    Children 1	50,000.00 €	15,956.87 €	34,043.13 €	11.05%	1,582.77 €
    Children 2	50,000.00 €	15,956.87 €	34,043.13 €	11.05%	1,582.77 €
    Children 3	50,000.00 €	15,956.87 €	34,043.13 €	11.05%	1,582.77 €
    					
    Total					4,748.31 €
    It's roughly €3,300 more, but note that when the other spouse passes away, heirs will attract a larger IHT percentage. The rule of thumb is to divide as much as possible, avoiding alocating large sums to a single heir.

    Regards
  • 10-03-2012, 11:14 AM
    liz hagerty

    Spanish Inheritance Tax: Advantages of Making a Will in Spain

    Oct 2012. Does this all hold true? It is very reassuring. But I think our Spanish will leaves half of deceased's estate (house value) to non resident spouse and remaining half divided between three non resident children over 18. No mortgage. House cost 400,000 now worth 250,000. Andalucia.

    What would inheriting spouse pay? Should we change will?
  • 09-19-2012, 10:31 AM
    ifv
    Hello Philip

    Welcome to the belegal forums.

    In answer to your questions, please note that Spanish law makes no provisions for IHT exemptions when it comes to non-residents. These exemptions do exist, but only if you were legally residing in one of the regions which make provisions in respect of IHT.

    Having said this, your case is the typical scenario in which inheritance tax can be almost negligible if the will is structured properly.

    For our calculations, we will be using the figures that appear on the article:



    The article is 12 years old, but everything mentioned there is still in force.

    The calculations are the following:

    Code:
    Value of Assets		300,000.00 € (including 'ajuar')			
    				
    	
    Scenario 1: Spouse and Children Inherit on First Transfer. Children on Second					
    	
    				
    First Transfer
    					
    Percentage to be transfered	26%	78,000.00 €			
    					
    Heir	Share	Allowance	Taxable Amount	Tax Percentage	Total Tax
    
    Spouse     19,500.00 €	15,956.87 €	3,543.13 €	7.95%	271.05 €
    Children 1 19,500.00 €	15,956.87 €	3,543.13 €	7.95%	271.05 €
    Children 2 19,500.00 €	15,956.87 €	3,543.13 €	7.95%	271.05 €
    Children 3 19,500.00 €	15,956.87 €	3,543.13 €	7.95%	271.05 €
    	
    				
    Second Transfer
    					
    Percentage to be transfered	32.50%	97,500.00 €			
    					
    Heir	Share	Allowance	Taxable Amount	Tax Percentage	Total Tax
    
    Children 1	32,500.00 €	15,956.87 €	16,543.13 €	9.35%	1,343.00 €
    Children 2	32,500.00 €	15,956.87 €	16,543.13 €	9.35%	1,343.00 €
    Children 3	32,500.00 €	15,956.87 €	16,543.13 €	9.35%	1,343.00 €
    					
    Total					5,113.20 €
    				
    	
    Scenario 2: Spouse Inherits on First Transfer. Children on Second					
    		
    			
    First Transfer
    					
    Percentage to be transfered	26%	78,000.00 €			
    					
    Heir	Share	Allowance	Taxable Amount	Tax Percentage	Total Tax
    
    Spouse      78,000.00 €	15,956.87 €	62,043.13 €	13.60%	6,536.49 €
    	
    				
    Second Transfer
    					
    Percentage to be transfered	52%	156,000.00 €			
    					
    Heir	Share	Allowance	Taxable Amount	Tax Percentage	Total Tax
    					
    Children 1	52,000.00 €	15,956.87 €	36,043.13 €	11.05%	3,303.63 €
    Children 2	52,000.00 €	15,956.87 €	36,043.13 €	11.05%	3,303.63 €
    Children 3	52,000.00 €	15,956.87 €	36,043.13 €	11.05%	3,303.63 €
    					
    Total					16,447.38 €
    Scenario 1 is clearly more favourable. On the first transfer, heirs would pay less than €300 each.

    Note

    • If the childrent are under 21, further allowances are applicable.
    • The above calculations don't consider the declared pre-existing wealth of the heirs, which, in case of Group I and 2 descendants, could attract an extra 0% to 20% depending on how wealthy each heir is.


    Taking a look at the above calculations, it is clear that structuring correctly a will is the best way of mitigating IHT over exisiting assets.

    I'd like to take the opportunity to recommend staying away from services such as the ones described here:



    Regards
This thread has more than 10 replies. Click here to review the whole thread.

Posting Permissions

  • You may post new threads
  • You may post replies
  • You may not post attachments
  • You may not edit your posts
  •