Spanish Inheritance Tax: Advantages of Making a Will in Spain

[John C]

Dear Sir.
I jointly own a property near Torrevieja with my cousin.We have both made out Spanish wills.We are both married,although the property is in mine and my cousins name only.Should I die first I understand my share automatically goes to my wife. When my wife dies I have willed my share equally to my 3 children (all over 21). My cousin has mirrored my will leaving his share equally to his 2 children(both over 21).
Could you please advise on I H T. liabilities for this situation.
We are both non residents. the property was bought in 2007 for 225,000 euros and is now worth lower than 200,000euros.
Regards. John

[Charlie N,]

My Father passed awaty recently and left half the house he owns to his grandchildren, the other is owned by a woman he lived with.
He left a car worth about 19000 euro.
The lady has transfered this to her name after his death!
Is this legal as all assets were left to the grandchildren,
And would half the contents of the house be shared between the beneficiarys and the woman who has life interest in the property?

[Patricia]

Hello Charlie,

I would need to have further details to answer your question; did you father make a will? Did he live in Spain on a permanent basis? Did he have other assets in Spain and Abroad?

In the event that your father only had estate in Spain and that he had made a will leaving all his assets to his grandchildren, they would be able to claim half of the house, half the value of the car, as well as half the contents of the house. If you provide with further details I will be able to provide with a more accurate answer. Also, please feel free to send an email to Patricia at Lawbird.com and explain the situation in detail if you wish a specific answer.

Regards,

[catherine]

both my parents are uk citizens resident in spain. my father died on Saturday and I´m not sure what paperwork needs to be done, if any, regarding spanish inheritance tax. They have no will either in spain or the uk. the amount in the spanish bank account is under 6000 euros and they only own a mobile home.I an a uk spanish resident as well and my sister lives in the uk. Im led to believe that English law rules over the Spanish one and that my mum will automatically inherit from my dad the money they have in the uk bank. I don´t want to end up will a bill (with interest) in a couple of years time. thanks for your help

[Patricia]

Hello Catherine,

First of all, please accept my condolences for the loss.

If your father had not made a Spanish will, the ruling Law in relation to inheritance matters will depend on his nationality and circumstances. If your father had also assets in the UK ( other than only bank accounts ), a UK probate process will have to be started so his properties worldwide are put in your mother´s name. If his only assets, that is, his usual and only dwelling was located in Spain and he was a Spanish fiscal resident, the Spanish law will apply and that means that you and your sister will inherit your father´s assets as children are legitimate heirs according to Spanish Law. A Estate transfer to heirs process will be started and you will require legal assistance to make all the proceedings. In relation to taxes, these will depend on who inherits, family relationship, age, use of the dwelling, province, etc.

You might find this post of interest: Free Testamentary Disposition for UK Citizens: Only if You Own Property in the UK.

Please feel free to e-mail me on Patricia at Lawbird.com if you wish to receive more specific information on your particular case.

Regards,

[Jamie J]

How is the value of a property assessed for IHT purposes?
Is it the Catastral Value multiplied with a factor, or is it the "actual market value" which is used?
I am getting conflicting information and would like to know what the Law states
Regards
Jamie

[Marta]

The law states that it will be the fiscal value ( up to date catrastral value) or the actual market value, the highest of the two.

[Jacqui Smith]

My husband and I are pensioners, our only house is in Spain, Andalucia - it's approximate value is 120k euros. We have a spanish will passing the property to one another (mirror will)- if I die it goes to my husband and vice versa. We live on basic uk pension and have no savings, the house does not have a mortgage on it. Do we have to pay IHT? We are residents - but I believe not fiscal residents (not sure of the difference). Any help would be appreciated. I am 65 and my husband 70.

[Patricia]

Hello Jacqui,

If you want to take advantage of the IHT exemption, you need to be registered fiscal residents ( registered at the tax office, as tax payers in Spain ). In the event you fail to prove this via the corresponding residence certificate, the tax office would request you to prove the residency through valid legal means; for instance, by providing with invoices, tax payments in Spain, etc, as well as documents that proved you spend more than 183 days per year in Spain to confirm your residency status.

Regards,

[S. Miller]

My husband is infirm and will never travel again. I have Power of Attorney. We are both Pensioners. Can I transfer our apartment into my sole name. He wishes me to do this to make things easier for me in the future. Also, can I add my daughter's and son's names to the Escritura (they both hold N.I.E. Numbers), or should I give them my Power of Attorney for any future eventuality?