Tagged: Inheritance tax IHT
- This topic has 2 replies, 3 voices, and was last updated 4 years, 6 months ago by Mark Roach – Spanish Tax Consultant & UK Limited Company Director.
June 25, 2017 at 12:06 pm #213486chrissywParticipant
3 siblings have just learned they are entitled to share of proceeds from sale of their fathers property in Lanzarote. He did not make Spanish will. Just want to get clarification on these points:
1. Legally what are they entitled to? Is it half the proceeds or 2/3rds.
2. Having given power of attorney for agents in Spain to sell the property how can they ensure the value being quoted is accurate.
They had not been in contact with their father or his new wife for many years and just going through the legal process.
June 28, 2017 at 12:08 pm #213599Mark StücklinKeymaster
These answers sent to me by DiG Advocats in Barcelona, who specialise in cross-border Spanish Inheritance tax issues:
If the property was not sold by the deceased person, the heir/s will be to register the ownership of the property in order to sell it. The power of attorney granted by the deceased person to the real estate agent expired when the owner died.
In order to know if they are entitled to half of the proceeds or 2/3rds the essential point is to know if the successions was ruled under UK law or Spanish law regardless of the fact that there was not a Spanish will.
As regards the value of the property, a preliminary search online may give an idea about the market price of a property.
July 3, 2017 at 7:53 pm #213687
As there is no Spanish Will in place then as UK & Spanish Lawyers dealing with Probate in Spain we would need to see the Will left by the Father in his main Country of Birth.
For example if he was British he may have a UK Will and if this is the case Probate can still be done in Spain so the Taxes can be paid first and the Lanzarote property sold on by the Estate Agent.
If the UK Will leaves the assets to the 3 Children on a third basis they can pay the Spanish Inheritance Tax equally and own the same amount of the property so on future sale receive a third of the sale funds.
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