Thread: Inheritance Tax

When we come to live in Spain we will probably settle in northern Costa Blanca. I understand that Valencia province allows a 99% exemption for the inheritance tax liability for a surviving spouse. This allowance comes with strings attached however.

1 you have to be tax resident
2 you have to have been a resident for at least 3 years
3 you must remain living in Spain for at least 10 years
4 you may not sell the property for 10 years

If any of the above conditions are not met the remaining spouse will be liable to pay the full amount of the inheritance tax.

Can anyone confirm the above information please?

Also I understand that if I include my daughter in the title deeds, an ultimate benificiery, then the inheritance tax will split between the two of them with both of them being able to claim the tax free allowance.

Again can anyone confirm this information?

I want to be perfectly legal and above board and do not want to go down the line of buying a property through a uk or offshore limited company. In any case the Spanish authorities will probably be trying to close this loophole soon I would expect.

Kindest regards

Steve and Jill