- This topic has 19 replies, 9 voices, and was last updated 10 years, 4 months ago by
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The regions of Spain are allowed to set their own levels of inheritance tax. In Spain inheritance tax is payable by a surviving spouse. This should be considered if investing in Spain because if you become a resident the tax is paid on your world wide asset values, even your car. 🙁
The levels of taxation vary between regions but one of the highest is Murcia.
It’s calculated that a property in Murcia valued at 150,000 euros with further cash assets of 50,000 would attract inheritance tax of around 10,000 euro payable by the surviving spouse.
Investing just up the road in Valencia community would attract zero inheritance tax for residents with the same value estate.
Fairness is not a word the Hacienda understand. Taxation in Spain for middle income earners is now worse than France and most other EU states. Just be sure you liquidate or move your assets before you die because one day you will.
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My complaint to Brussels on this and discrimination against non-residents, is awaiting a hearing in the European Court – http://www.curia.europa.es Case no C-127/12 (see the topic in Questions and Answers). It should be heard later this year.
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Ubeda probably isn’t aware that Murcia changed it’s inheritance allowances last year. not so good in many other provinces either. I read an article a few weeks ago where many are renouncing their inheritence because they can’t afford to pay the tax.
We once bought a house from a Dutch woman in Marbella. Her Husband had died a couple of years before. She had no money to pay the tax and the house was given an embargo. adding penalities for non-payment she received less than half the value of the house when sold.
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Calculate it yourself. My post was based on an actual case I’m familiar with. It’s just one more injustice. Yet so many people are unaware or would rather not face the potential liabilities they will have.
http://www.fuster-associates.com/inheritance-tax-calculator.htm
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like your source Logane, Jerome the lawyer from San Diego (not near Cadiz; i think it’s the USA 😆 😆 😆 😆 😆 😆 😆 that’s the problem with the internet; plagued by trolls, unhappy social misfits and not to mention the so called professionals bottom fishing for vulnerable, uneducated customers !!!! If in doubt stick to Mark’s list of recommended lawyers for honest factual and accurate tax and legal advise !!! 😯 😯 😯 😯
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Logan, you are right that Ubeda Durian is what’s known as a wum, he is the troll on this site because as you say he’s never constructive, he is some sad vested interest character who darts out of the shadows every now and then, simply to wind-up 3 of us who post anything that counters his misleading b
t, or any notes of caution. 🙁Now, Ill tell you something. A while back he was in his protective mode for Calahonda saying how wonderful it was, (suits some) but nothing like Elviria and Cabopino nearby. Although he lives in Spain, works in Spain, earns his living out of Spain, this weird character admitted he doesn’t like living amongst ‘noisy Spaniards’. WTF is he doing in Spain then if he can’t be bothered to integrate. As katy said about him, he is like a timeshare shark that Spain had plenty of 👿
Not only that, your name is logan, mine is Angie, katy is katy, and who is he named after on here, the idiot names himself after an inland dusty town with the worst speed-humps in Spain, he has no cojones to enter his real name 😆
Anyway, expect to see the Durian soon 😆
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Thanks Angie. As so often before I’m struggling to see the point of spending any time on these forums. My original motivation was to try and prevent personal disasters for people who may not know how problematic the property market is in Spain. I also believed a few years ago that it was the raison d’être of Mark and the forum.
Now the forum has become a game of ping-pong between the vested interests groups who make a living from foreign buyers and a few of us who keep trying to warn of the difficulties of buying and living in Spain.
I have nothing against Spain. It’s a decent place to work, invest and live. However it’s also populated by a large number of crooks and sharks on the coast, principally British whom the potential buyers inevitably gravitate towards.
Spain also has poor legal accountability when things go wrong, corruption on an epic national scale in most sectors, and right of center controlling government who seek to roll back freedoms hard won by generations of Spaniards.
That said Spain and the ordinary Spanish people are basically very tolerant., The tolerance of difference, nationality, religion and sexual.difference is a credit to them..
The taxation issues I have posted are so often overlooked by retired people who move to Spain but they eventually become a real problem. Widows and widowers can find themselves in difficulties at a time in their lives when they least need it.
It’s an injustice a surviving spouse should be forced to pay tax on their hard won lifetime asset accumulation, often on relatively very small estates.
I know legal action is proceeding through the EU human rights courts on this subject soon. I hope Spain will be forced to end this injustice and bring their country into line with most other EU countries tax regimes.
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@UBEDA wrote:
like your source Logane, Jerome the lawyer from San Diego (not near Cadiz; i think it’s the USA 😆 😆 😆 😆 😆 😆 😆 that’s the problem with the internet; plagued by trolls, unhappy social misfits and not to mention the so called professionals bottom fishing for vulnerable, uneducated customers !!!! If in doubt stick to Mark’s list of recommended lawyers for honest factual and accurate tax and legal advise !!! 😯 😯 😯 😯
You can put all the emoticons you want and get all Marks recommended Lawyers/Advertisers but the bottom line is inheritance tax in Spain is punitive and no expensive Lawyer will prevent you being took to the cleaners.
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@The Australian wrote:
and the solution is….?
Don’t become a tax resident, buy in an off shore company name, and don’t live in Spain for more than 183 days in a tax year. It may not enable you to escape IHT but you can minimise it between spouse if you are tax registered elsewhere, such as UK or Ireland.
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@logan wrote:
@The Australian wrote:
and the solution is….?
Don’t become a tax resident, buy in an off shore company name, and don’t live in Spain for more than 183 days in a tax year. It may not enable you to escape IHT but you can minimise it between spouse if you are tax registered elsewhere, such as UK or Ireland.
nah…if I move there, I just stays there 365 days a year….read above, in the Canaries IHT isn’t an issue.
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The solution is not to invest in Spain. They have a crooky government, lost of social programs that are expensive to maintain, tons of “funcionarios” or public servants with high salaries/benefits/vacations and jobs for life guaranteed and at the end of the day…who would be better to charge astronomical taxes but to non-residents. Just don’t pour your hard worked money into Spain. I am a Spanish citizen myself and was participant with a sibling in an inheritance. My sibling who lives in Spain paid a symbolic inheritance tax (near zero euros) but I was forced to pay nearly 30%. So I would never recommend investing in Spain, it is a fiscal suicide.
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