Comments on: Inheritance Tax for non residents

By: Sherry Thomas

Sherry Thomas — Mon, 28 Nov 2011 23:34:58 +0000

Following the death of my mother who lived in the Canaries for past 35 years I need to complete a tax form 652 and BOE 88. (I have already obtained a NIE). How do I get hold of a copy of these forms and can I get them in English rather than in Spanish? There is no property ionvoved – just a bank account and a car. What is my tax rate likely to be? (The estate is shared with my sister who is resident in the Canaries.)

By: Maria Tervit Boyce

Maria Tervit Boyce — Tue, 11 Oct 2011 19:15:29 +0000

I did not say what the price of the above property is….difficult to say.
They were selling for 40,000,000 Ptas but I possibly would be lucky if it was worth just over half. The rateable value is 140,000 euros

By: Maria Tervit Boyce

Maria Tervit Boyce — Tue, 11 Oct 2011 19:11:17 +0000

Oct. ll.
I have a property in Andalucia which I would like to leave to a niece on my late husband’s side…therefore she does not have consanguinity to me. I am now no longer resident in Spain, but my niece is Catalana by birth and lives in Barcelona. Is this a feasible way of
doing things or would the taxes be crippling for her?

I was not too sure what URI is.

Muchisimas gracias
Maria

By: george peters

george peters — Tue, 14 Jun 2011 17:15:47 +0000

I own a property in the Balearics worth 600,000 euros. It is presently 100% mortgaged. It is the home of my parents who have the right to live there until their deaths.
If I die then my wife will inherit the property. What inheritance taxes would be due as she cannot sell the property until my parents die or choose to leave.
regards, George

By: Jean Lamont

Jean Lamont — Sun, 12 Jun 2011 20:56:02 +0000

Thank you ever so much for your advice. Your site is superb for anyone who doesn;t understand the Spanish Inheritance system.

By: Karen

Karen — Sun, 05 Jun 2011 12:44:00 +0000

Hi,
I sent the previous message and just wanted to ask another question. I have now heard that the property was bought for approx £100,000 although we are not sure if it was purchased with any Deeds. Does this make a difference? Also my husbands wife I assume receives the property until she either sells or her death, does she have to pay inheritance tax also? If the children are left with the tax are they able to insist that the property is sold to enable them to pay the taxes? There are 4 children.
Thanks
Karen

By: Karen Hall

Karen Hall — Fri, 03 Jun 2011 20:12:35 +0000

Hello, My father died last June and had been living in Spain for the last 5 years – I have a brother and sister. We were in contact with him but not close contact as he had another family where he married his partner of 35 years 2 years ago but did not leave a will. I have a half brother who is 36 who I have never met. I was contact last weekend out of the blue from my half brother. He was saying that we would incur inheritance tax if we did not waive our rights. The property that was purchased in Spain 5 years ago was very basic with few amenities and was purchased for £20,000 – I would suspect that the increase in price was not too high. He said he would take on all the taxes if we waive our rights. If the property is worth say maximum of £50,000 what sort of inheritance tax would we pay? There are 4 children – I believe there would be no tax payable but would just like to check. What is the advantage to us of waiving our rights. We are not too worried about getting any inheritance from our father but don’t want to be rushed into making a decision. Any advice would be great.
Thanks
Karen

By: Daniel García Chagrin

Daniel García Chagrin — Tue, 17 May 2011 12:09:00 +0000

Hello Lorraine,

If the property is worth 70,000 euros and you inherit it alone, the inheritance tax will amount to 5.735 Euros approximately. Remember that the tax is payable within 6 months of the date of death.
Do not forget either that the tax authority is entitled to reassess the value of the property and claim an additional tax if they find the declared value too low.

Regards,

Daniel

By: Lorraine Thompson

Lorraine Thompson — Sat, 14 May 2011 10:38:24 +0000

Hello, Please can you advise. My Mother died in Tenerife in February this year. She owned her own property and had lived in Tenerife for almost 10 years. I live in England and my Mother has left the property to me. It is worth around 70,000 euros I think, how much inheritance tax will I have to pay?

Regards

Lorraine

By: Daniel García Chagrin

Daniel García Chagrin — Wed, 11 May 2011 10:23:25 +0000

Hello Jean,

Sorry for this late reply, due to the large amount of work

Assuming that the share of each would be inherited by the remaining 4, no inheritance tax will be payable at all on the death of one of you, since each would inherit one fourth of one fifth share, and the taxable value would be negative after deducting the allowance next of kin are entitled to.

However, if your husband and you have a Will in favour of each other, according to which the surviving spouse would inherit alone – not sharing with the sons – the other parent’s share, then the survivor would have to pay some inheritance tax, approx,. 1.030 Euros.

In such case your 3 sons would later inherit 2/5 of the property and would then have to pay approx. 260 Euros each, that is, 780 Euros together.

All that provided always that the value given of 140.000 Euros remains the same and is a value acceptable for the Tax authority.

Regards,

Daniel