Thread: Spanish Inheritance Tax

I have just read an article in the Solbank Prestige club latest magazine on the subject of Spanish Inheritance tax. If you can get a copy from Solbank it is well worth reading.....It states that if you really want to minimize your inheritance tax, you should move to the Basque country a few years before you plan to die..You should also ensure that your inheriting children (or spouse) become Spanish citizens, and relocate to the same area. Then you can die in peace, knowing that your children can inherit with no tax to pay.

Valencia is rightly criticized over its urban property rights, but it has an advantage in that an inheritor (including spouse) has an exemption of 40,000 euros on their inheritance, while in Andalucia and most other regions ,the amount is only 16,000 euros. This again only applies to persons registered on the padron in those areas....and they must keep the property for at least ten years, or pay the full amount.

If I had known this before we purchased property in Spain, we may have bought in my inheritors names..and reserve the usufruct for my spouse and I.(meaning we could live there for life.) A problem could then arise if they die first. One suggestion is to sell your curent property, and buy again in their names..Not ideal, but it would reduce their tax bill.

There is so much more useful information in the magazine on Death and taxes, I would recommend anyone who has branch of Solbank nearby to ask for a copy. (There is also a great information guide to Pamplona in this issue)(spring 2009) It is free to Solbank customers and 3 euros to others, although they may not charge you if you ask nicely.

CD

As I put the above thread on very early this morning, it didn't go on the new post page.
So in order for more to see it I have done another post.

CD

Now CD you are just confusing me ! when I logged in this (mid) morning this thread was there as I had not read any since last night. It has come up every time I have clicked on new posts and when I use the 'Quick Links' option 'Todays Posts' also, if you have the stats enabled you see it there also very visible

Uprooting to the Basque country, seems a bit drastic, how do you know when you are going to die. You can sort out the Spanish Inheritance Tax problem a lot easier by transferring the property in to a UK company, less drastic and a lot cheaper

Originally Posted by D.G.D.

You can sort out the Spanish Inheritance Tax problem a lot easier by transferring the property in to a UK company, less drastic and a lot cheaper

D.G.D We own three properties in Spain, so perhaps you could briefly explain how to transfer to UK Company and how it might benefit me and other members. I thought that transferring was the same as gifting, in which case there wouldn't be a lot of difference in the tax liability.

CD

Hello CD Thader.
D.G.D is correct.
There is a UK based Financial Company who specialise in assisting Spanish property owners avoid inheritance tax by transferring the property to a UK company.
PM me and I will forward you the contact details of this co.

Hi CD Thader, don't think you can advertise or post companies on this post, if you send me your e-mail address I will send over a link to a company that will explain how this is done, me e-mail address is [Please re read the guidelines, we have a PM system]

Valencia is totally exempt too. As long as the conditions about are met, moving, living there for a time, children being residents...

The forming of the UK is the best solution. I have done it. If you want to know more I will be glad to help.