September 18, 2006 at 2:32 pm #52245
Hi, I’m hoping one of our Spanish lawyers could shed some light on this for me please.
I’m looking at a Nota Simple for a finca and under “Cargas” with a date in 2002, it says:
“Afección: Presentada a Sucesiones exenta de pago con un plazo igual a 5 anos.”
The finca is owned “nuda propiedad” by one individual with another having “titular con caracter privativo, del usufructo de la totalidad de esta finca, por el titulo de herencia.”
As I understand it, this is saying that the property is exempt from inheritance tax for a period of 5 years.
Now, firstly I’m not sure how anyone, other than Hacienda, can declare a property exempt from inheritance tax, could anyone explain? And why 5 years? I understand usufruct.
Also when the period of 5 years is up, which will be in 6 months’ time, what happens then? TIA.
September 20, 2006 at 5:15 pm #65882
No ideas anyone?
September 21, 2006 at 12:06 pm #65919
I don’t know the answer to this one – but I am sure your local notary or property registrar does. If your Spanish is up to it – just visit their offices early in the morning and ask. As public officials they are invariably helpful and knowledgable.
September 22, 2006 at 11:30 am #65972
The afección is a kind of legal mortgage over the property, but this is just in the theoretical mortgage´s law. What it really means is that the adquisitors of that property by title of inheritance declared it was exepmt of paying any kind of inheritance tax ( which mey be perfectly truth as Inheritance taxes has lots of reductions, exemptions… in Spain). As it is done by an owner´s or citizen´s autoliquidation of the tax, the Administration has 5 years to bring a complementary declaration in a contrary sense. Once that deadline is reached the right of the administration to ” complement” the autoloquidation is over.
Hope that helps!
Have a good weekend you all!
September 22, 2006 at 2:17 pm #65985
Thank you Maria, as always.
By the “Administration” I take it you mean Hacienda?
What would happen if the property were to be bought by someone before the 5 year period is up?
And how would you find out if any “complementary declaration” had been brought in the meantime?
September 25, 2006 at 12:50 pm #66065
By Administration I mean ” Hacienda”.
EVen if the house change hands it will be liable of the tax.
Just the Autoliquidators can know if a complementary declaration is issued.
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