who can give me accurate advice on Spanish Inheritance Tax?
I own property in Spain and am British. I am informed that taxation on my death could be 42% of the asset for my beneficiaries to pay to keep my property. I am told that there is a company called Intelligent Inheritance Tax Planning that has a legal workaround. Anybody heard of them?
Please don’t rely on a company recommended to you. You will just get picked off. There is only one way to do this and that is to read up and understand Spanish tax law yourself and make an action plan. Then by all means engage a professional to carry it out for you.
In the age of the internet you have absolutely no excuse.
Start here http://belegal.com/wordpress/eu-pulls-the-stops-and-vows-to-put-and-end-to-inheritance-taxation-discrimination-on-non-resident-beneficiaries-inheriting-in-spain/
You will see that the current rules are under review so it may be worth waiting for a year or two.
Bear in mind that even if you sort out the Spanish end, if you are a British domiciliary, your Spanish property will be part of your estate for British inheritance tax purposes so you may be just exchanging one tax liability for another.
Filed under: Inheritance Tax
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Please don’t rely on a company recommended to you. You will just get picked off. There is only one way to do this and that is to read up and understand Spanish tax law yourself and make an action plan. Then by all means engage a professional to carry it out for you.
In the age of the internet you have absolutely no excuse.
Start here http://belegal.com/wordpress/eu-pulls-the-stops-and-vows-to-put-and-end-to-inheritance-taxation-discrimination-on-non-resident-beneficiaries-inheriting-in-spain/
You will see that the current rules are under review so it may be worth waiting for a year or two.
Bear in mind that even if you sort out the Spanish end, if you are a British domiciliary, your Spanish property will be part of your estate for British inheritance tax purposes so you may be just exchanging one tax liability for another.
References :
I believe that the ‘work around ‘ that you are referring to is to transfer your Spanish property into a British limited company, whereby you can appoint shareholders – usually yourself and your spouse, maybe even your kids aswell. Upon death shares are basically reallocated This usually carries a one-off fee to arrange and a small yearly retainer to do the accounts for the British limited company.
This also has the added benefits that maintenance, upkeep and other costs associated with the property can be offset for tax purposes.
This is simply my understanding and I am no expert in this, but you may wish to have a look at this article that will tell you a little more – http://www.tumbit.com/blogs/744-avoiding-spanish-inheritance-taxes.html
References :
Tumbit’s recommended approach is definitely not the way forward. My advise is the same as the one given here: that you do your own research and seek independent qualified advice. You can read more on these so called ‘inheritance specialists’ by reading the following:
http://belegal.com/blog-by-antonio-flores/spanish-inheritance-tax-a-cynical-approach/
http://belegal.com/blog-by-antonio-flores/spanish-inheritance-tax-don%E2%80%99ts-2-seeking-exemption-by-incorporation-of-uk-companies/
Regards