Spanish inheritance tax

[Gill M]

Can you please help with the following:
Non married retired British couple in their 50's. Jointly own and live in Spanish property valued at 150000 euros. Spanish will in place leaving property to surviving partner.
Not currently taken Spanish residency. Does this have to be taken?
Are there any tax benefits etc to Spanish residency?
One dies the other pays tax on 75000 euros.
What is the % payable on this figure?
What would the difference be if they were married?
Sorry, I know i'm asking a lot but advise would be greatly appreciated. Thanks

[lawbird]

Hi Gill,

If you are only leaving spanish property behind and you are both retired, I would recommend you take spanish residency. This will erase any doubts about the applicablity of Spanish tax law to the estate.

Assuming you are leaving a 50% share of a property worth 75.000 Euro to your partner (and nothing else), then there is a substantial reduction of the IHT applicable that you could take advantage of if you were both married. In effect, it would mean that there would be almost no IHT applicable on the transfer of that 50% share. Technically speaking, this should also apply to partners as well as spouses, however, marriage will leave no doubt or room for contesting the tax entitlement of the surviving spouse.

Hope you find the above information of assistance. Should find yourself in need to instruct a lawyer, please do not hesitate to drop us a line at info @ lawbird.es

Kind regards,