How is CGT calculated on an inherited Spanish property?

[satprof]

I don’t know if this is the right place to ask this question, but I am planning to move to Spain (from France) this year and would like to understand how the system works there.

Let us say that I die as a tax resident of Spain (Catalonia) & leave my main home to my two children via a Spanish will. If they subsequently sell the property, how is the acquisition value of the property calculated, for CGT purposes? Is it based on the price I paid or on the value at the time of my death? Might there be any CGT to pay on my death? (I am already over 65.)

[Ptt]

My information is that if you are over 65 and have been tax resident and paying Spanish income taxes for a minimum of 3 years then you have no CGT to pay. I cannot see why your children would have to pay it either and it’s unlikely now you will have to pay any Inheritance tax. You can find a lot of information on line about this by googling the question or going to the sites of  firms of Spanish lawyers and British firms like Blevin Franks

[rojoybago]

satprof, very complex and also depends on what part of spain you live in…… avoid taking flyers and only consult a decent lawyer or tax consultant….. avoid bar flies, financial advisors and the like .. Raymond on this site knows his stuff – worth paying for a quick consultation?

[Barbara Ingenbleek, Euro Economics]

The question from Satprof is: if the children sell the property. The profit tax is levied on the difference between the acquisiation value stated in the inheritance tax form plus several charges and the sale price minus several charges.

[Author]

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