Hi All I know this is probably the wrong title but Im interested to know if people have made any provision about what I will call the death tax in Spain.
A friend of a friend of mine had to come home from Spain when her husband died as she had to pay a high amount of tax on her husbands share on the value of her home that was in joint names...
Not only did she have to find the money but couldnt sell the house to find it [as it was in joint names]she had to find the money and then sell the house...
I know I will have to find out properly and will look into it when Im next there but wondered if anyone had any advice.
Paula who looks after the houses and lives in Spain has taken out a life insurance that would pay the tax if one of them died.
Just wondered what others had done if anything????
Inheritance Tax on Death
This is a horrible situation which I am aware of and will eventually do something about.
I bitterly regret having not purchased the house at least in 50% the kids names because that at least avoids paying the tax at all on half of it and you can issue something called an urfrusuct (something like that), so that when one partner dies, the children can never sell their share or chuck granny/grandad out.
I fully intend leaving my share to the children, although no doubt it will be also be up to us to ensure there are funds to pay the IH on it.
We are in a rotton situation because OH is not their biological father, we were told by our solicitor who asked the local notary that my OH could not leave his share to the kids, meaning leaving it to me, paying tax, then paying it again on 2nd death (if it goes that way). I was gobsmacked, saying, hang on a minute, I thought the law was to protect children and your law is certainly not protecting our kids, he has brought them up with me since toddlers and now you say that according to your law, if I die first, when he dies, you'll distribute it all to his Mum/brother/sister who we don't even see very much !!!!!! I do know that they are supposed to respect the English way but then again I know you should have a Spanish will to make it easier, how can you do that if the local notary says 'no'. Having asked another local solicitor she said it is possible, so I will have to do something eventually.
Having said all that, we would love a villa one day, so part of me thinks, sell the damn thing and do it properly next time
I bitterly regret having not purchased the house at least in 50% the kids names because that at least avoids paying the tax at all on half of it and you can issue something called an urfrusuct (something like that), so that when one partner dies, the children can never sell their share or chuck granny/grandad out.
I fully intend leaving my share to the children, although no doubt it will be also be up to us to ensure there are funds to pay the IH on it.
We are in a rotton situation because OH is not their biological father, we were told by our solicitor who asked the local notary that my OH could not leave his share to the kids, meaning leaving it to me, paying tax, then paying it again on 2nd death (if it goes that way). I was gobsmacked, saying, hang on a minute, I thought the law was to protect children and your law is certainly not protecting our kids, he has brought them up with me since toddlers and now you say that according to your law, if I die first, when he dies, you'll distribute it all to his Mum/brother/sister who we don't even see very much !!!!!! I do know that they are supposed to respect the English way but then again I know you should have a Spanish will to make it easier, how can you do that if the local notary says 'no'. Having asked another local solicitor she said it is possible, so I will have to do something eventually.
Having said all that, we would love a villa one day, so part of me thinks, sell the damn thing and do it properly next time
Don't waste energy on things you can't change.
Costa de la Luz apartment rental
www.ownersdirect.co.uk/spain/S5386.htm
Costa de la Luz apartment rental
www.ownersdirect.co.uk/spain/S5386.htm
Hi Partridge,
You have got a Spanish Will though havent you?
Ive got a feeling that if not it goes to the next male like My OHs Brother or something like that....
I will have to go to see the Solicitor when Im there weve got a will but I want to see about sorting this other out....I know we put these things off but we really shouldnt things can happen very quickly whos to say when
?????
You have got a Spanish Will though havent you?
Ive got a feeling that if not it goes to the next male like My OHs Brother or something like that....
I will have to go to see the Solicitor when Im there weve got a will but I want to see about sorting this other out....I know we put these things off but we really shouldnt things can happen very quickly whos to say when
?????-
CostaBlanca
- Posts: 253
- Joined: Mon Jan 09, 2006 2:58 pm
- Location: Costa Blanca
Hi,
Google "usufruct" and you will probably a much better legal definition than I could give.
As I am no expert in these matters, I will just give my opinion. As far as I know, here both Spanish and British solicitors assist in registering Spanish wills with regard to Spanish assets for foreigners according to the client´s own wishes, even if that means omitting a member of family or excluding all of them and giving it to someone else. Generally, there would be no interference from the courts/notaries unless a disinherited member of family sought legal advice and decided to challenge a will in court..
Partridge, I would consult with a different solicitor to get a second opinion as what you have been advised does not seem to be correct.
Inheritance tax - there are also advantages being a resident as a wife/husband would not have to pay IT if the remaining partner continued to live in the family home for a further 10 years. There are rumours that there will be changes to some tax liabilities next year which could mean a significant saving for non residents.
Maria
Google "usufruct" and you will probably a much better legal definition than I could give.
As I am no expert in these matters, I will just give my opinion. As far as I know, here both Spanish and British solicitors assist in registering Spanish wills with regard to Spanish assets for foreigners according to the client´s own wishes, even if that means omitting a member of family or excluding all of them and giving it to someone else. Generally, there would be no interference from the courts/notaries unless a disinherited member of family sought legal advice and decided to challenge a will in court..
Partridge, I would consult with a different solicitor to get a second opinion as what you have been advised does not seem to be correct.
Inheritance tax - there are also advantages being a resident as a wife/husband would not have to pay IT if the remaining partner continued to live in the family home for a further 10 years. There are rumours that there will be changes to some tax liabilities next year which could mean a significant saving for non residents.
Maria
hi all!
this is really interesting as (to be honest) I hadn't even given it a thought!
We're both resident - so hopefully that would be easier on the tax side of things but it is definately something we need to look into........I'm making an appointment with the gestoria as soon as.
Why do you have to pay tax when your partner in the propery dies? Is it to do with inheritance?
How horrendous to have to cope with an unfair tax when you are already trying to cope with losing someone you love.
Mouse
x
this is really interesting as (to be honest) I hadn't even given it a thought!
We're both resident - so hopefully that would be easier on the tax side of things but it is definately something we need to look into........I'm making an appointment with the gestoria as soon as.
Why do you have to pay tax when your partner in the propery dies? Is it to do with inheritance?
How horrendous to have to cope with an unfair tax when you are already trying to cope with losing someone you love.
Mouse
x
One martini, two martini, three martini floor!
Hi Mouse...Long time no see...
Hope everythings Ok
Both these people were resident too but theres still a huge tax to be paid not sure exactly how it works..[it made it worse that she couldnt sell the house to raise the money she had to pay the tax first as the house was jointly owned
Ive just clicked onto this http://www.interlex-spain.com/Spain/Inheritance.php
Just as an example...
I dont know the ins and outs but it definitely needs looking at..
Hope everythings Ok
Both these people were resident too but theres still a huge tax to be paid not sure exactly how it works..[it made it worse that she couldnt sell the house to raise the money she had to pay the tax first as the house was jointly owned
Ive just clicked onto this http://www.interlex-spain.com/Spain/Inheritance.php
Just as an example...
I dont know the ins and outs but it definitely needs looking at..
http://www.shelteroffshore.com/index.ph ... /P1/[quote][/quote]Even if you manage to successfully tie your estate up tightly enough to legally avoid Spanish succession laws, please do not assume that your estate will avoid Spanish inheritance tax! Inheritance or estate tax is unarguably the most unfair tax of them all, but it is also the one tax that generates governments so much ‘free’ revenue that they will pursue it above all other forms of taxation.
Hi Ros.....everything is hunky dory (as my gran used to say!). In-laws have gone, I've been luxuriating in having the house to ourselves and my hectic work schedule is starting to slow down......I just have some work to do in Benidorm of all places!!!!!! I'll be working there next week for my sins!
Boards been busy whilst I've been away.....just trying to catch up on everything now!!
Mouse
x
Boards been busy whilst I've been away.....just trying to catch up on everything now!!
Mouse
x
One martini, two martini, three martini floor!