Business and Marketing

We have a lot of customers who bought in Spain or the Balearic Islands, or think. In recent years, there have been some changes in how the Spanish Government, the fee for those who are British and Spanish real estate company, even if the change of government, this could change again. Here we look at two aspects - Wealth and inheritance tax.
We have many clients who bought in Spain and the Balearics, or planning to do.
In recent years, there have been some changes in how the Spanish Government, the fee for those who are British and Spanish real estate company, even if the change of government, this could change again.
Here we will examine two aspects - wealth tax and inheritance tax.
Wealth Tax
This concerns the property tax debts allowed or not. The activities include real estate, cars, cash, shares, jewelry, etc. This is why property tax calculated on net assets of a person properly registered under mortgages, charges and loans.
Non-Spanish residents at risk to the property tax on assets in Spain. It also means that all Spanish residents qualify for benefits does not apply to non-residents. Perhaps the most common bands could be 167 123 334 246 in which the tax is 0.3% and 334 246 668 499 0.5%. The tax is progressive, so that you will pay the lower amount to the next level of banding and subsequently the level in the next, etc.
So if you have a property valued at say 400,000, your annual tax bill will be 1165. No end of the world, but important to remember that.
Inheritance tax (IHT)
This tax is assessed in the recipient - the heir - and if the resident are not normally taxable only in Spanish property.
One of the most important things to understand is that the exemption of the spouse. So, if common property, and one of you dies, the surviving spouse is half the value of taxable
The tax rates range from 7.65% up to 7,993, 34% over 797,555. It is then subjected to a second calculation based on the heir of the deceased and his own wealth.
So, as a rough example, if the deceased spouse's share was valued at 160,000 euros, the IHT would be around 23,000 euros.
A very important function is to make sure you have a Spanish will, and tell your lawyer to ensure that the United Kingdom Wills are linked. So, in Spanish law deals with the Spanish funds, and the United Kingdom from the property of the United Kingdom.
The main advantages of a Spanish are:
- There will be no delays, extra work and costs involved in relying on the UK for the disposal of its assets in Spain
- If you do not have a will and die intestate, the property will be distributed under intestacy laws. This means that third parties decide who inherits your assets, and in many countries for children of the spouses
- If you are a non-citizen Spanish Spanish you will also want to express your desire to be adjusted according to the laws of your country
Should also be noted that to maintain a loan against the Spanish property tax base could reduce IHT issue.
This is based on our current understanding of Spanish law. Key considerations:
If you plan to invest abroad, so make sure you take all factors into account - an informed choice every time.
ACTION POINT
If you have a Spanish property, seems to have a loan based in Spain, if you do not have a Spanish will, do it now, and link it to your UK