Taxation & long lost love

In 1979, I married a Spanish girl in London, at the registrar's office. Sadly it lasted for three year, due to family reasons etc. We did not have any children & since obtaining our Decree Nisi, she went back to Spain & now lives in Madrid. I do not know her marital status.

I, have since not got married or have any children of my own. I have a property in Marbella, which I would like to leave behind to her.

The problem, I have is to how to give/transfer/donate to her to minimise taxes etc as she would not be in a position to pay for them from her own sources. I have also heard that I can pass the property onto her & live in it for as long as I live. I would not like any complex tax structures like setting trust, offshore Company etc.

As the property is in Spain, I need to prepare a Spanish will which I need to incorporate in my English will. I am a UK resident for Tax purposes.

Dear Sir,

Your query is very strange.

Your ex partner would have to pay for Spain's Gift tax which follows the same sliding scale as Spain's Inheritance tax, or else you can pay the tax on her behalf if she can't. In any case the Gift tax has to be paid by someone prior to having the property lodged under her name at the land registry.

From a tax mitigation point of view, it would be more reasonable that you sold her your property which would attract less taxes (only 7% Transfer tax for her and 18% CGT and Plusd ValÃ*a for you). You can reserve for yourself a usufruct right which will enable you to live in that property, now belonging to her, for as long as you live.

You are indeed correct my query is very strange. Nothing in my life is not strange.

"Your ex partner would have to pay for Spain's Gift tax which follows the same sliding scale as Spain's Inheritance tax,"

What % is it ?.

or else you can pay the tax on her behalf if she can't.

She certainly cannot afford to pay so I will have to pay for her



In any case the Gift tax has to be paid by someone prior to having the property lodged under her name at the land registry.

OK, what is your cost of doing so.

From a tax mitigation point of view, it would be more reasonable that you sold her your property which would attract less taxes (only 7% Transfer tax for her and 18% CGT and Plus ValÃ*a for you).

She cannot afford to buy at the market price or close to it. I cannot sell it to her for say nominal price as Hacienda will not accept such a price.





You can reserve for yourself a usufruct right which will enable you to live in that property, now belonging to her, for as long as you live.

Spain's Inheritance tax follows a sliding scale in proportion to the value of the asset that is being either bequeathed or gifted. Please read our article on the matter which includes the said sliding scale.

Regarding the minimum value the Spanish Tax Office allows at which a dwelling can be sold please read our blog post on that one.

We would charge our standard conveyance fee of 1% on the value of the property plus 16% VAT with a minimum legal fee of 1,800€ plus 16% VAT.

No, you do not have to pay CGT in Spain, as the sold property is located in UK and is subject to BritishTax And Propety Law. Spain has no competences there.