Spanish Inheritance Tax: How much is it?

[Laraine]

I wonder if you can help. My great aunt passed away in December naming myself, my brothers and three cousins in her spanish will. The estate consists of an apartment. Can you give me an indication of what costs we may be liable for upfront? Do we have to pay all the costs before the inheritance?

[Laraine]

Sorry I should mention that my great aunt was married to my great uncle who was our blood relative but died about 8 years ago. Also we are all resident in the UK. Thanks

[Tony]

Is there any way to find out if someone is a qualified lawyer in Spain. My father passed away last year and his legal reprasentative does not seem able to tell us how much our IHT will be! All she says is that it is worked out in Madrid.

[lawbird]

Hi Tony,

Ask her for the Bar Association she is registered with and her registration details. You can then contact the Bar Association in question and they will confirm whether she is registered or not.

Alternatively, you can visit the following link where you will find a list of all legal professionals registered in Spain:

https://www.redabogacia.org/censossl/printLogonCenso.do

Kind regards,

[Norman]

Please can you confirm what figure Spanish Inheritance Tax is is paid. Is it the market value of the property or the Valor Cadastral?

Many thanks

[lawbird]

Hi,

Its the "valor minimo fiscal" which is similar to the cadastral value. That is, a value that is estimated by the tax authorities, which is not necessarily the same as the market value of the property (given the fluctuating and recent sudden changes in property prices).

Kind regards,

[lawbird]

Dear Laraine,

Each heir would be liable to pay IHT tax on the share of property they receive and this has to be paid before the property can be registered into your names. In addition, you would also be liable to pay legal fees, notary fees and registration fees, as well as any debts belonging to the estate.

Without looking at the corresponding documentation and no indication of the value of the property and other assets involved, I am afraid it is impossible to provide you with an estimate of your liability.

If you are looking to instruct a solicitor in your matter, please do not hesitate to contact us via email at info @ lawbird.com and we could discuss your matter further and with reference to all the documentation in question.

Kind regards,

[Liz]

We are residents of spain, we own our house in joint names, we are not married. We have made a joint spanish will. If the male dies we assume the house will pass to the female and vis a versa. How does inheritence tax work for an unmarried couple. Do we have to get a letter from one of the male children for the female partner to stay in the house. Would it be better financially to marry.

[Patricia]

Dear Sir/Madam,

Welcome to our forum.

There are no differences between married or unmarried if you have a property in joint names. In response to your specific quesiton, the female would not need a letter written from the male inheritor to remain in the property, as she owns the 50%.

When selling the property, the income generated would be distributed to all property owners depending on the percentage of their ownership. However, if one of the co-owners passed away and the children/inheritors ( In Spain, the children have the right to inherit part of the property ) wanted to sell without the consent of the living owner they could force him/her to sell in public auction. The ideal situation is that you come to an agreement before involving the courts.

In the event that the British will states that only one party inherits the other half of the property, you would be charged the tax payment applicable as having acquired that half, as per the national laws of the deceased. If the children are also inheriting, they also have to pay the property transfer taxes, on the same way as the living co-owner.


Regards,

[Liz]

Thank you Patricia for your response and coming back to me so quickly. This information has been very helpful. Would I be correct in thinking that in the event of one co-owners death if the remaining co-owner wished to move house/had to financially move to a smaller property, would only be able to take 50% of the price of the property, the remaining 50% would go at that time to the children/inheritors or do the children/inheritors only inherit on the deather of both co-owners? Could either co-owner after the death of the other co-owner change the will regarding the children/inheritors. Regards Liz