# Information please.



## Jaxx (Apr 21, 2010)

Can anyone give me information please.We have recently returned from our first holiday in Spain and just loved it.We are considering moving to the Murcia region of Spain.We are UK residents and have 3 daughters living in the UK also. I have been reading on the internet about the inheritance tax and it concerns me that i would have to pay this if i lost my husband, or him me, on our Spanish main residence if the surviving one moved back to the UK.
Also is it correct that my daughters would have to pay this vast amount of inheritance tax as they do not reside in Spain if we were to end our days there and would have to be paid before the home were sold?
Is there a lower limit in Spain like the £312.000 in the UK? We are both almost at retiring age.
Also is it correct we would have to pay 19% capital gains tax on the profit of the house if we sold the property and returned to the UK? If this is all true we think we may have to reconsider and would be gutted!
Thanks in anticipation.


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## Jaxx (Apr 21, 2010)

SteveHall said:


> You need to speak to a specialist BUT let´s do some of the simple stuff.
> 
> Living in Spain is NOT an extension of a two week holiday. I wrote recently, "What is Spain really like for an ex-pat?
> 
> ...


Thanks Steve,
we will not do this lightly and without a lot of research and thought,that is why i am on here.We are used to living in an isolated place here in the UK and moved from a bustling busy place and love it here but the weather here leaves something to be desired.The bus by the way comes within 500 yards once a week!
From what you say i need not be worried about capital gains tax then!!! i thought prices were beginning to rise slightly?but obviously would like to learn more about inheritance tax if you could help please,many thanks


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## JBODEN (Jul 10, 2009)

You can have a look at the following web site (Spanish Inheritance Tax Planning - Home Part 1) and see what they have to say about IT and also their solution to this problem. I'm not advocating their services because I haven't dealt with them but the idea of buying your property via an UK Ltd Company (they don't 'die'!) seems interesting. Obviously you should seek independent financial advice before making a decision. 



Jaxx said:


> Can anyone give me information please.We have recently returned from our first holiday in Spain and just loved it.We are considering moving to the Murcia region of Spain.We are UK residents and have 3 daughters living in the UK also. I have been reading on the internet about the inheritance tax and it concerns me that i would have to pay this if i lost my husband, or him me, on our Spanish main residence if the surviving one moved back to the UK.
> Also is it correct that my daughters would have to pay this vast amount of inheritance tax as they do not reside in Spain if we were to end our days there and would have to be paid before the home were sold?
> Is there a lower limit in Spain like the £312.000 in the UK? We are both almost at retiring age.
> Also is it correct we would have to pay 19% capital gains tax on the profit of the house if we sold the property and returned to the UK? If this is all true we think we may have to reconsider and would be gutted!
> Thanks in anticipation.


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## decgraham (Apr 24, 2008)

Jaxx said:


> Thanks Steve,
> we will not do this lightly and without a lot of research and thought,that is why i am on here.We are used to living in an isolated place here in the UK and moved from a bustling busy place and love it here but the weather here leaves something to be desired.The bus by the way comes within 500 yards once a week!
> From what you say i need not be worried about capital gains tax then!!! i thought prices were beginning to rise slightly?but obviously would like to learn more about inheritance tax if you could help please,many thanks


When we were last in Denia for a week in February we met with a new fiscal representative (we had been paying too much to the last one for completing our non resident tax returns for our property so changed) who gave me some interesting information regarding IHT. I won’t go into detail because I don’t have it, but we will be discussing this subject in detail with her in the summer when we will be there for longer. However, she advised us that IHT can and does vary province to province, and if you are in the Valencian province (I don’t know about other regions) there are ways in which you can reduce your IHT liability by up to 90% for husband and wife and I believe the children. 

I mentioned to her, the “forming a company” option and she said, yes that is an option but it obviously costs money. She also said that these companies that provide this “company formation” process service would not make any money if they offered what she was talking about.

I’m sorry if this is a bit vague but as we are not yet resident in Spain I have not focused too hard on this subject but believe that there are options out there, I will be in a better position to explain August this year.

I think bottom line is, get a good fiscal advisor / representative, they might be able to save you a fortune.

Good luck.


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## dunmovin (Dec 19, 2008)

there is no lower or upper limit on the value of the estate, but each inheritor has an allowance of 40,000 euros which is not taxed. (e.g. the estate is valued at 150,000 euros, and three people will inherit one third 50,000 euros, then they will be each be liable for tax on 10,000 euros)

Valencia will only tax a RESIDENT dependant at 1% of the value of the estate. This alsoapplys to children, so long as they have residency in Spain.


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## Jaxx (Apr 21, 2010)

dunmovin said:


> there is no lower or upper limit on the value of the estate, but each inheritor has an allowance of 40,000 euros which is not taxed. (e.g. the estate is valued at 150,000 euros, and three people will inherit one third 50,000 euros, then they will be each be liable for tax on 10,000 euros)
> 
> Valencia will only tax a RESIDENT dependant at 1% of the value of the estate. This also applys to children, so long as they have residency in Spain.


It is the Murcia region we are interested in and i am surprised to hear it is 40.000 euros allowance not the 16.000 euros i thought it was. Our children are UK residents and adults who have flown the nest so will not be moving to Spain with us is the 400000 Eu still applicable. Thanks again.


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## angela1 (Nov 21, 2009)

I think you would be very foolish to buy a property in Spain at present. There are lots of rental properties in Murcia. You should look at renting out your UK home and using that rental to pay your rent in Spain and have some money left over which you can use as an income. If your property is in such a remote area where it won't rent then sell it and buy one in an area where it will rent well. The rental market in the UK is very good as it's so difficult to get mortgages.

Moving to Spain that way is a win win situation and keeps all your options open.

There are many positives to renting in Spain, not much for buying right now.

If you are still intent in buying you have to accept you may have that property forever as it may never sell. Is that what your daughters want?

The very best of luck

Angela


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## dunmovin (Dec 19, 2008)

Jaxx said:


> It is the Murcia region we are interested in and i am surprised to hear it is 40.000 euros allowance not the 16.000 euros i thought it was. Our children are UK residents and adults who have flown the nest so will not be moving to Spain with us is the 400000 Eu still applicable. Thanks again.


from what was explained to me, the answer will be no. Unless the children are resident in Spain, they will be liable for the full tax on the estate.


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## Mark svq (Apr 23, 2010)

RENT do not buy in Spain. Real estate prices (i think) still have a way to drop.


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