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We are getting close to our completion date, and I was wondering if we should buy under one name, or joint names.

I will be staying in the villa for 3 months of the year, and maybe renting out for as much of the remainder as possible. My wife will come out a couple of times a year for a couple of weeks holiday.

Are there any advantages/disadvantages to buying and having just my name on the contract, or in joint names?

If in joint names will there be form filling and responsibilities for my wife who will be living in the UK, that sort of thing?

Any advice appreciated.

Cheers

Wibs
 

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OK, I'll have a go.

If a couple buy in joint names, then in the event of the death of one of them only half the value of the house would be subject to Spanish inheritance tax. In Andalucia, currently a spouse can receive an allowance of €175,000 (as long as their own personal wealth is not more than just over €400,000) before having to pay IHT, plus the share of the principal residence which they inherit from their spouse is discounted for IHT purposes so long as it's value is less than €122,000 (subject to it having been their main residence for at least 3 years, and they have to retain the property for 10 years following the inheritance). As your Spanish house would not be your main residence the latter wouldn't apply to you.

If the property is bought in the sole name of one of a couple, if the spouse who is not the owner of the property dies first then the survivor would not be subject to Spanish IHT at all on the house.

However, if the spouse who is the owner of the property dies first, then the IHT liability of the survivor is increased.

You have to make your own decision based on what you think would be best. I am the sole owner of the house my husband and I live in, but we are residents and it is our only home.

I see neither of you would be residents in Spain - so as non-resident owners you would each have to submit a non-resident tax return and pay the non-resident tax on the relevant share of the house. As explained in another thread there are firms who offer this service at a reasonable cost, and the cost would be the same whether there are two owners of the property or only one.
 

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We are getting close to our completion date, and I was wondering if we should buy under one name, or joint names.

I will be staying in the villa for 3 months of the year, and maybe renting out for as much of the remainder as possible. My wife will come out a couple of times a year for a couple of weeks holiday.

Are there any advantages/disadvantages to buying and having just my name on the contract, or in joint names?

If in joint names will there be form filling and responsibilities for my wife who will be living in the UK, that sort of thing?

Any advice appreciated.

Cheers

Wibs
IMO - joint names. If one of you dies, the survivor only has to pay inheritance tax on one half of the property, because, the other half is already owned. Similarly if you should divorce, the person who has no ownership of the property is put in difficult position in that he /she would have to leave.
 

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Joint names every time in my opinion. Wills can be challenged, particularly if you don't leave everything to your spouse and why would you lumber your wife with a potentially greater tax bill, if she is not already paying at the highest rates in the UK and Spain?
It also earns brownie points as it demonstrates trust and confidence in the strength of your relationship with each other whilst you are alive. The only things we consider as not jointly owned are those which are gender specific such as clothes and jewellery. Obviously there are other items which get used by one partner more than the other e.g. mobile phones and tools but this would not exclude the other from using them.
 
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