Spanish Inheritance Tax

[dave m]

Both my wife and myself own a property in joint names and have made a Spanish Will
Leaving the property to our three children in the event of a partners death ie they
Will then own 50% of the home.
As none residents what would the tax be on a 15000 euro property that has no morgage.
I would be interested to hear from members of the forum that have gone through this or
How it can be reduced.

Many Thanks
Dave M

[Rob1305]

Dave - as no one else has replied - I have an article you are welcome to a copy of written by David Searl who publishes a very good book on Spain including taxes and also writes in the Sol Bank magazine.

[Calpe]

Hi Dave

Spanish Inheritance Tax is a minefield, there are legal ways to avoid Spanish Inheritance Tax and one of the ways to do this is to transfer your property into a UK company with you and your wife as directors.

You need to find out what your tax liabilities would be now and then to look at the cost of setting up the company to see if this option would be beneficial for you.

I don’t know if you can send private messages on this forum but if you can and would like more info then contact me

Cheers

[dave m]

Many thanks to Rob and Calpe who are the only two to respond to my question.
Having done a little more research it seems the only way forward to reduce this
tax is to form a uk ltd company.

My further questions are:

How do you go about setting up a uk ltd company.

What is the set up costs involved.

Is there an annual cost and any taxes to pay.

On transfer of any shares to other people is any cost involved.

Thanks in advance

Dave.

[Rob1305]

Dave - there is a company pushing this option but I do not know if it is a valid option. There has been a lot of discussion about it on other forums, many claim it MAY be a loophole at the moment but it will be closed.

If you are determined to follow up on this I would advise independent professional advice - try

Pellicer and Heredia, based in Alicante 965 480 737, they only thing they sell is legal services (unlike many of the others) info@pellicerheredia.com

keep us posted.

[Calpe]

Hi Dave

There are lawyers in Albir Alicante who will be able to advise you on the legality of transferring your property to a UK company, they are Link Point Legal and Business Services Tel 0034 96 626 05 00.

Hope this is of help

Cheers