When you are buying property in Spain Inheritance tax considerations will often have a place in your decision m,aking process. We advise taking advice from Inheritance tax specialists who understand the rules.
In the recent weeks we have been working on several property sales which have been brought about following an inheritance. The issues surrounding these sales have brought it home to us how important it is to fully consider how you organise your affairs not only to reduce your inheritance tax liabilities but also, and possibly more importanyly, to make it simpler for your heirs to sort out your affairs!
Firstly you have to have to make a will. This sounds simple and very obvious but often ignored. Also it will make things so much easier if you also make a will in Spain.
Sometimes the complicated “tax saving” structures such as companies and the dreadful words “off-shore” are not necessarily the best way to go. These structures can cost a lot of money to set up and changes in the law can take away any of the advantages that you thought were there. Remember that the Government here in Spain and your home country are both looking to take away these tax advantages and hopefully you will live long enough for them to succeed.
In Spain, Inheritance tax on a property needs to be paid before the asset can be sold. When organizing your finances it is worth taking this into consideration to make sure that whoever follows you is in a position to meet this requirement.
The best advice we can give is that you should consult an expert in Inheritance tax planning who understands the rules here in Spain and also in your home country. You tax planning will need to take account of the rules in both countries.
We had meetings last week with Michael Davies the principal of Davies Abogados in Marbella. Michael is an expert in Inheritance planning with considerable knowledge of the rules in the UK as well as here in Spain. Although he has lived in Spain most of his life and is fully qualified here in Spain he knows both the British and Spanish Systems and will be happy to advise you on any Inheritance tax issues. Michael’s blog includes numerous articles relating to Inheritance tax planning and makes a very interesting read.
If you would like help with Inheritance tax planning please let us know and we will help put you in touch with an expert who understands the rules in your country. You can call us on (0034) 952 90 52 00 or send an e-mail to .
