Ways on How to Avoid Inheritance Tax on Spanish Property

[Dee W]

Can you help. My parents moved to Spain approximately 10 years ago. My father died there about 6 years ago leaving my mother in situ. They both had residencia.
Their intention was to leave the property to their 5 children, but two have subsequently passed away. Leaving my mother, my brother (living in Australia), one sister and myself. My mothers speak of advice she has had to put the property into my sisters name to avoid inheritance tax but reading the q & a above, this does not seem sensible. Can you advise.
The property cost approximately 100,000euros and is now worth much the same.

[Gaynor Currie]

What is the best thing to do if you wish to leave your property to a non-profit making organisation? (An animal society.) Charity's do not seem to exist in the same way as they do in England, and there seems to be no tax concessions. Also, if I bought another property, would there be any advantage to buying it in the name of the animal society, in order to remove the need for inheritence tax later?

[Deb's]

hi . My father recently passed away and has left an apartment in Palma worth 180k euro's. He made a Spanish will. Now his Spanish solicitor says both me and my brother have to pay 41 thousand euro's IHT ?

[Deb's]

sorry that amount is to be paid between us not paid by both of us. Seems too much ?

[Patricia]

Hello Deb,

First of all, please accept my condolences.

I have done some quick calculations and 41,000 € is a bit too high.

Note that you will be inheriting €90,000 each. The allowance for children is of nearly €16,000 (if you are 21 and above). This means that €74,000 is the figure we must use as a base for the calculations. Using the table on the article Spanish Inheritance Tax: How much is it?, you will have to pay under €11,000 each.

Let me know if you need further help.

Kind regards,

[Peter]

Hello. My wife and I own a property in Tenerife. Could you please tell me if it is best for us to have a Spanish will, or a UK will. We both reside in the UK.

Kind Regards

Peter.

[Paul]

What has happened to the IHT calculator referred to in the article at the top of this thread? The link doesn't work.

[Paul]

Hello, I wonder what would be the best course of action for me to try to avoid paying excessive IHT should anything happen to me. I own 5 properties in the Canary Islands and am resident there for 12 years. My son who is my sole heir lives in the UK and is 21. He is not a resident of the Canary Islands. The total value of the properties is about 650-700 k and there is a small mortgage of 30k on one of them. I have done quite a bit of research on this and found your website to be most helpful. Can my son apply for residence here but live in the UK? as I understand that he will be exempt if he is a resident for 5 or more years. Thanks for any advise.

[slimstan]

i am forming a uk ltd company and will be purchasing a spanish apartment in marbella what would the spanish costs of this

[Tom J]

My father lived in Almeria and died in 2010 but before he died he decided to take his home and deed it to my two younger brothers without his other 4 children knowledge. He must of done this to avoid the other 4 children inheriting the home. Was this legal since the transaction was between him and my two younger brothers? It is my understanding that Spanish law prevents parents from this. Thank you for any advice you can provide