- September 8, 2013 at 7:26 pm #57789
Suppose you live in UK and buy a modest property in Spanish jurisdiction to use part of the year particularly winter time -lets say you are unencumbered no wife no kids and no mortgage and you liked going to your property and wanted to keep it particularly not sell it while property is depressed in price. But you might die before then ! You need a Will – a Spanish Testament. Now Winchams will tell you you don’t and they are right there is indeed another way by putting your property into a UK limited company. But say its only a pied a terre and if you did keep it until you expire and would like one of even both in their time your brother to be able to use it and even live there as long as they pay the modest outgoings. Now Inheritance Tax is different in Spain they tax the beneficiary and it starts at 7500 Euro . Just say you had a 50 000Euro property and your brothers and sister had children and you left 7 of them 7500 Euros each covering the value of the property at present time 1. I assume the Hacienda could charge no tax on your death if the papers are filed within 6 months.? 2. If one or two of your brothers wanted to use it and refused to sign to sell it then that is the end of the matter if you state in your testament that that is your wish that they so do ?. At the end of the day you achieve your wish to make provision for your close relatives needs in old age and fulfil the spirit of the Spanish Law to pass monies down in modest amounts to needy future generations. Comment much appreciated -it may be useful as well to potential buyers thinking about purchasing and how they can benefit their families too. P
- September 11, 2013 at 2:45 pm #118187
A large number reading this ! Not really so much the essence the suggestion for simplicity that the buyer was a batchelor or widower no different if married and non resident as far as Spanish Tax is concerned. For myself I will need a lawyer to write this and Notarise it either not far from Kent in UK or in Canarias but would be useful if anyone’ legal ‘thought the idea looked ok please ?
- September 12, 2013 at 7:40 am #118191
Hmm. Ptr, this question is a bit complicated. One of the lawyers might have a go at answer, but I doubt it. I think you either have to try and simplify the question, or consult a lawyer directly.
- September 12, 2013 at 12:46 pm #118194
Good Mark. When I get round to this during the winter- I think it easier to do it in Spain -I will post a result. Of course personally I have to go to a lawyer to get the paperwork I need -but I am sure there are lawyers who read this board who might suggest that there is a way to avoid paying Inheritance Tax in the way I suggest quite legally and perfectly ethically.
- September 14, 2013 at 7:46 pm #118216
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