Comments for Cardenas Real Estate Agent Blog - Gran Canaria

Comment on Inheritance Tax for non residents by Daniel García Chagrin

Daniel García Chagrin — Wed, 07 Jul 2010 16:50:40 +0000

Hello Tracey,

the inheritance tax must be paid within 6 months after from the decease but an extension of another 6 months can be applied for within 5 months from the decease, so the term of six months can be extended for another 6 months.

Being a non resident in Spain, the inheritance tax would amount roughly to approx. 50.000 Euros for the property valued in 200.000 Euros and 100,000 in bank accounts as well as UK premium bonds.

However it would be interesting to study (after comparing the inheritance tax to be paid in UK and Spain for the 100,000 in bank accounts) if it would be more convenient to pay inheritance tax in UK for the 100,000 Euros in bank accounts as well as UK premium bonds, if they are situated in UK, rather than to declare them with the inheritance in Spain.

The Tax Office offers the possibility of splitting the payment of the
inheritance tax in different payments. An application must be filed and expressly accepted, with the obligation in most cases of guaranteeing the payments (i.e. with a bank guarantee).

Do not hesitate to contact us for further questions.

Regards

Comment on Inheritance Tax for non residents by Daniel García Chagrin

Daniel García Chagrin — Wed, 07 Jul 2010 16:44:52 +0000

Hi Toni,

Yes, this solution would reduce the inheritance tax. Being a progressive tax, calculated on each share, the rate is lower if more than one inheritance share are involved, i.e. the tax amount will be lower for 2 shares of 115.000 Euros each than for one share of 230.000 Euros.

We feel we must point out that if you want to sell the property in the
future, and your daughter is still under age, the Spanish authorities will not accept the sale without permission of the Court (Spanish Court or Court of your country of residence).

Such a permission is a way to protect the wealth of a person under age
according to Spanish law, but coincident also the law in many European
countries.

Do not hesitate to contact us for further questions.

Regards

Comment on Inheritance Tax for non residents by Tracey Swift

Tracey Swift — Sun, 04 Jul 2010 16:26:50 +0000

My father and step mother sold up in the UK and moved to Spain in 2004 and have spanish residence. My step mother died last year suddenly and now my dad has a terminal illness and I am the sole beneficiary of the estate. I live in the UK. I understand that the IHT has to be paid within 6 months – before the estate can be released. My dads property is worth about 200,000 euros and I believe he has approx 100,000 in bank accounts as well as UK premium bonds. How much IHT approx would I be liable to pay and what happens if you have not got the funds to pay for this before the assets are transferred.

Comment on Inheritance Tax for non residents by Tony Smith

Tony Smith — Thu, 01 Jul 2010 15:01:51 +0000

We own a property in Spain worth about 230,000 Euros. In order to avoid a high Inheritance Tax, when we brought the property , we named only my wife on the deeds for the property and in her Spanish will, we named our daughter now aged 8 as the inheritor of her estate and me as a substitute inheritor (should anything happen to our daughter God forbid) This was done on the assumption that I die first. We have now thought of another scenario of my wife dying first. What would be the inheritance tax implications if this were to happen and would it reduce the inheritance tax implication if both me and my daughter were named as the inheritors of her estate in my wife’s Spanish will.

Comment on Bar Playa – El Pajar, close to Arguineguín by Carolina

Carolina — Thu, 24 Jun 2010 16:22:23 +0000

Thanks Lucy for reminding us of Bar Playa, an obligatory visit for any Arguineguin fan!

Comment on Fiestas in Mogán 2010 by Bigwave

Bigwave — Wed, 26 May 2010 21:59:33 +0000

What a very well written and informative article.

Comment on Inheritance Tax for non residents by Rolande

Rolande — Tue, 18 May 2010 13:57:09 +0000

Hello John,
Sorry for the late reply, the matter was not simple, and we had to check.
Regretfully, only some Regional Governments have recognised the situation of civil partners and given them the same rights as a wife/husband for inheritance tax. The deceased being a non resident as well as yourself, the competent Tax authority is the Special Branch of the Tax Authority in Madrid, i.e. depending on the State Tax Agency (AEAT), and they do NOT recognise civil partners as spouses. Therefore you will have to pay Inheritance Tax as if you were a non relative of the deceased. It means that you are not entitled to an allowance and moreover, the tax amount resulting from the application of the tax table to the inheritance value will be multiplied by 2.
Do not hesitate to contact us for further questions or to know exactly the amount you are liable to pay.

Comment on Inheritance Tax for non residents by John

John — Sun, 09 May 2010 19:25:37 +0000

Hi,
My Civil partner died last year and we have a holiday apartment in Gran Canaria in his name our main resident is in the UK and there are no other assets. He made a Spanish will with me as sole beneficiary do I have the same rights as a wife and should I be paying Inheritance tax

Comment on Inheritance Tax for non residents by Rolande

Rolande — Fri, 23 Apr 2010 12:30:27 +0000

Hello Pauline,
It is NOT necessary to include the grandchildren in your will, because with the present allowance of 15.956,87 Euros for each of the 4 inheritors (husband/wife + 3 children), the total allowance is more than the value of ½ of the property, so NO inheritance tax at all would have to be paid. You would only have to pay some inheritance tax (very little) if the value of the property would increase in the meantime and reach over 124.000 Euros approximately.
Including the grandchildren would make things only more complicated (many people having to agree in case of a sale, more expenses for proxies, NIE numbers, etc) so our recommendation would be to leave things as they are.
Regards,

Comment on Inheritance Tax for non residents by pauline robinson

pauline robinson — Wed, 21 Apr 2010 15:46:44 +0000

my husband and i own a property in spain it is now worth aprox 110.000 euros we purchased it for 50.000 euros 10 years ago…we are non reidents as are our family.. we have 3 sons and 5 granchildren.at the moment our will leaves the property or 1/2 of it as we are joint owners to be shared between wife/husband and three sons, would it be more benificial to add the grandchildren as well.. and can you tell me aprox how much inheritance tax would have to be paid as we are not wealthy people and have very little money in the bank..