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UK Inheritance

5K views 45 replies 9 participants last post by  Alcalaina 
#1 ·
Do you need to inform Spanish authorities of the death of a family member who doesn't live in Spain only in case of a inheritance?
 
#3 ·
Only if you had a crystal ball?

Joking aside, why would you inform the Spanish authorities of the death of a family member unless there were tax implications.

Once you know there are, then of course you do.
 
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#6 ·
So does the 650 just amount to a declaration that you expect to inherit or does it require actually numbers? In UK probate can often take over 6 months to be done, sometimes even a year so you wont know the amount until quite a bit later
 
#7 ·
It requires numbers, but they can be estimated. I had to get my mother’s house valued to obtain a figure, even though we weren’t selling it. The form has to be accompanied by copies of the will, probate, transfer of title deeds and death certificate. You might be advised to check with the Agencia Tributaria about delays. Or it might actually be on their information page already.
https://www.agenciatributaria.gob.es/AEAT.sede/en_gb/procedimientoini/G702.shtml
 
#20 ·
Anyway getting back to my point. Are there huge differences in IHT thresholds within regions. I mean, a million seems very high in Andulacia whereas it seems to be 150.000 in Valencia although I am not sure as I cant work out all the different rules and categories in Spanish
 
#34 ·
Well it is better in the UK, but it's not quite true to say it's applied equally - the newish exemption from IHT of the family home (up to 1 million, I believe) only applies if the beneficiary is a spouse, chlld or other direct ascendant/descendant, so people without immediate family are still disadvantaged, or rather their heirs are.
 
#33 ·
For example if the estate was 1 million.If part of the estate was the main residence of deceased then £500 000 would be tax free. The other 500 000 would have 40 % tax. So that means £800 000 would go to beneficiaries. If there were 2 beneficiaries then each gets 400 000. If one lives in spain then is that 400.000 subject to spanish IHT? Or can it be offset by uk tax?
 
#37 ·
I agree a bit with Lynn. When my ex had to deal with her mother's flat it took nearly 5 years. 4 years as no testament could be traced so had to the 4 year period. Then the property had to be split 3 ways with people who had to get nIEs including their wives! Then the notary , then the lawyer, plus valiant etc In the end each got 12,000 euros .All money had to deposited in a spanish account. After 3 months account was blocked. Then after money was withdrawn bank kept charging. Cant close account without all 3 persons coming to Spain to do it in person. Total nightmare.
 
#38 ·
I forgot to add that our friend's sister did eventually sell the house, for less than he had paid for it originally. Of course, as she was a non-resident seller, she was subject to the 3% Capital Gains Tax retention. She instructed a gestor to claim a refund of that for her, and it was a further 15 months before she got the money back. She also had to pay a second tranche of plus valia when she sold, after having paid it when she inherited the property. A refund of that was also claimed as she had sold at a loss, but that has never been forthcoming.

I really would prefer not to have to potentially subject my brother to all of that.
 
#40 ·
There has been a few articles in the Spanish press re. Spanish officially turning down their inheritance.
Myself and 5 cousins inherited in an Aunts will which included a Villa in Spain. Was a decade ago Very complicated, 2 were Spanish, rest British. Property was sensibly worth around 525,000, authoriities said £698,580:roll eyes: left it in the hands of a Spanish lawyer as none of us wanted to pay out of our pockets. He bought the villa and paid the tax due before selling. We got the grand sum of around 21,000 each. Gain for the lawyer and the government.
 
#44 ·
I have a 'addendum' to my fathers will that states 'upon Mr xxx death should his son Barrie legally resident in Spain, then he relinquishes all rights to his fathers estate and wishes for the aforementioned estate to be passed directly to his children as a 50% split'
My dad also had to mention this as well (was all done through his solicitor.)

Just means it goes straight to my kids and there will be no tax to pay, as my father is a UK resident, so Uk inheritance trumps Spanish. (obviously if my children want to be nice to their dad they will buy me some nice things) :)

As to tax here, Valencia has a 100k tax free level for inheritance after that it gets expensive.
 
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