Help re inheritance

[Debbiemcampbell]

Hi ,

please can you give us some advice regarding a property my husband has just inherited in Spain . We are uk citizens resident in New Zealand . My husbands step mother died leaving him small house in Spain . She had not been resident in Spain for 6 years and we didn’t even realise she still owned the house so it’s a bit of a shock to us especially now it seems we have to pay tax and we don’t have the money to do this . His father and step mother paid about 80k euro 10 years ago for the house.

I am wondering do we have to accept the inheritance as we don’t want it .

I really appreciate any advice you can give

many thanks

debbie

 

[Ros]

Hi Debbie. I have no idea about the IHT laws in Spain, but on a practical level, have you thought of googling a local agent near to the house who speaks English and asking if they can sell it cheaply. IF for example IHT rates are 40% (no idea if they are), then you would only need a sale of more than that to make some money, cover the tax bill and have this headache gone.

[Barbara Ingenbleek, Euro Economics]

Pls note that an inheritance under the E 175.000 is exampt from taxes. Pls contact a law office to deal with the inheritance.

[Mark Roach – Spanish Tax Consultant & UK Limited Company Director]

Hello Debbie,

Please note Spain has 17 different Regions and they all have their different allowances on death Taxes to the Beneficiaries of a Spanish property in that Region, some Regions less favourable than others.

The €175,000 exemption stated by Barbara is for the Andalusia Region when inheriting your main home in the Andalusia Region.

What is the Region of Spain where the Spanish property your Husband is to inherit ?, or where is it located in Spain so I can help confirm the Law in that particular Region for yourselves.

Please also note the Spanish Tax Office Taxes the Beneficiaries on blood line of the person passed away, as you say it is not your Husbands direct Mother he is inheriting from but his Step Mother, this means he may be classed as a Group 4 Beneficiary in Spain so his Spanish Inheritance Tax may be higher than inheriting from his direct family.

[fpegman]

If you do not want to inherit then just write to the Probate solicitors stating that you are refusing the bequest, its legal to do so .

[Author]

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