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Posted: Wed Jan 20, 2021 8:17pm
Super helpful member
Thank you Terry for this information. I hope you are right as this is good news, very good news indeed.
My dear friend and her husband bought an apartment on the sea front at Playa del Cura. Sadly, she died about 9 years ago and her husband had to pay €13000 in inheritance tax. He himself died before Christmas but I have an idea that he had already put his place into the names of his children so hopefully no inheritance tax to pay.
many thanks Terry.
Posted: Wed Jan 20, 2021 8:43pm
Helpful member
Grannyrose wrote on Wed Jan 20, 2021 8:17pm:
Thank you Terry for this information. I hope you are right as this is good news, very good news indeed.
My dear friend and her husband bought an apartment on the sea front at Playa del Cura. Sadly, she died about 9 years ago and her husband had to pay €13000 in inheritance tax. He himself d...Read more...
...ied before Christmas but I have an idea that he had already put his place into the names of his children so hopefully no inheritance tax to pay.
many thanks Terry.
Hi rose,
I have added my source of research so you can see for yourself.
I know this to be fairly accurate as the people we brought from went through this process and I remember the lady didn’t pay any inheritance tax.
We saw the paperwork to this, as we would have been liable had she not paid...
Anyone not having to pay such a tax in any country is of course good news
Terry
Posted: Wed Jan 20, 2021 8:49pm
Super helpful member
Is it possible that now that the U.K. is no longer part of the EU, will Spain bring this tax back again? I imagine that they will and that would be bad news.
Posted: Wed Jan 20, 2021 8:58pm
Grannyrose wrote on Sat Jan 16, 2021 1:55am:
Please be aware that those of us who are non residents and property owners will be taxed if and when our property is sold. There is also a tax on your share of the property when you die and for all other owners eg husband , wife, children.
It’s an expensive business owning a property in Spain as a resident and a non resident. Residents pay more tax than they would in the U.K. non residents get taxed on their property. Should you die, all your assets are taxable I am led to believe eg. Car , boat...
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We didn’t know but it’s too late now, we are property owners and there is no way out to avoid tax.
I met with a tax accountant yesterday to clear up some questions. We also have a holiday home here and was worried about tax since Brexit. We have a will and 2 daughters our property is left equally to them. Spanish law states each child is allowed 100,000 euros each before any inheritance tax owed. Although that is now it may change in future. The non residence tax is quite small so 5% more is not a disaster seems the fees to sort is as much as the tax although you can do it yourself ours is about 160 euros for both of us so 5% more is ok. If we sell our property you only pay Capital Gains tax on the profit you make so not likely for us in the near future. Hope this helps
Posted: Wed Jan 20, 2021 9:06pm
Daftjock wrote on Sun Jan 17, 2021 12:44am:
I've opened a right can of worms when asking about non resident tax, now I find there is also a death tax!
So me and the hubby buy a property together (2nd home) but if one of us dies it doesn't simply transfer to the surviving spouse who is co-owner? I've read a bit about it now but I am just bamboozled by it all and don't actually know what it would mean financially to the survivor. Do they have to ...
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...find a large sum of money to hold on to the property? What a minefield 😕
We just got advice in this we have left 50% to each of our daughters by way of if I die (awful) my half goes to my daughter so she would own it with my husband. When my husband dies his 50% would be left to our other daughter this was the best way of doing it as one of my daughters is not my husbands biological child so she would get nothing if we didn’t do it that way. Our will is also recognised UK law. Hope that helps
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Posted: Wed Jan 20, 2021 9:09pm
Super helpful member
Lynne 2626 wrote on Wed Jan 20, 2021 8:58pm:
I met with a tax accountant yesterday to clear up some questions. We also have a holiday home here and was worried about tax since Brexit. We have a will and 2 daughters our property is left equally to them. Spanish law states each child is allowed 100,000 euros each before any inheritance tax ow...
Read more...
...ed. Although that is now it may change in future. The non residence tax is quite small so 5% more is not a disaster seems the fees to sort is as much as the tax although you can do it yourself ours is about 160 euros for both of us so 5% more is ok. If we sell our property you only pay Capital Gains tax on the profit you make so not likely for us in the near future. Hope this helps
Let us all hope and pray that this inheritance tax is never implemented again. It’s possible that we could avoid it as we live in Ireland ( NI) but we are often seen as one and the same so it’s likely that we could avoid it. I hope Spain decides to cherish the British home owners as we brings lots of money into its treasure chest and don’t deserve to be persecuted as we were before.
Posted: Wed Jan 20, 2021 9:19pm
Super helpful member
Lynne 2626 wrote on Wed Jan 20, 2021 9:06pm:
We just got advice in this we have left 50% to each of our daughters by way of if I die (awful) my half goes to my daughter so she would own it with my husband. When my husband dies his 50% would be left to our other daughter this was the best way of doing it as one of my daughters is not my husb...
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...ands biological child so she would get nothing if we didn’t do it that way. Our will is also recognised UK law. Hope that helps
When was this? Did your adviser mention anything about an inheritance tax? Your reference is about how you made your will but no mention about the possibility of an inheritance tax should one or other of you die. I am hopeful that the previous poster is correct snd inheritance tax is no longer applicable.
Posted: Wed Jan 20, 2021 9:29pm
Terryoneone wrote on Wed Jan 20, 2021 8:07pm:
Hi rose,
Just done a bit of research on the inheritance.
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We will assume there’s a will in place.
In the Valencian region you can inherit up to €100,000 without having to pay inheritance tax as long as your the husband or wife, it differs with other relatives on a sliding scale.
There is no difference between non resident and resident, spain was told to stop doing that a while back by the EU.
Last thing to mention is you have to self declare and as I suspected within 6 months or a 5% fine is imposed . Inheritance includes anything of value ie cars ,campers caravans etc.
As previously stated if you inherit half a property,it’s half the properties value what counts and not the total value..
This like most things in spain depends on what region your in....
Terry
Terry again very useful info, you seem to have a better understanding of how it works than I have, despite also having read up on it 😕 Do you know if the tax free allowance is solely on property owned in Spain or would the fact that we will also have our property in the UK be counted also? Probably confused myself even more by reading up on it, lol.
Posted: Wed Jan 20, 2021 9:40pm
Grannyrose wrote on Wed Jan 20, 2021 9:19pm:
When was this? Did your adviser mention anything about an inheritance tax? Your reference is about how you made your will but no mention about the possibility of an inheritance tax should one or other of you die. I am hopeful that the previous poster is correct snd inheritance tax is ...
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...no longer applicable.
We left 50% to each child the inheritance tax is above 100.000 euros each child our property was 170k so inheritance tax not likely for quite some time. Hopefully we will be around a while yet. 🙏
Posted: Wed Jan 20, 2021 9:41pm
Lynne 2626 wrote on Wed Jan 20, 2021 9:40pm:
We left 50% to each child the inheritance tax is above 100.000 euros each child our property was 170k so inheritance tax not likely for quite some time. Hopefully we will be around a while yet. 🙏
Sorry we got this advice yesterday from our tax accountant here in Spain.
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