# Inheritance from relative in UK



## Lynn R (Feb 21, 2014)

Have any forum members received an inheritance from a relative in the UK and declared it for Spanish inheritance tax? I would be grateful for information about how the process works and what documentation I would need to provide.

I am tax resident in Spain and am a beneficiary of my Aunt's Will. She died a few weeks ago and I will receive an inheritance once her house is sold. It won't be a huge amount, but I know that as a Group III relative I will only be entitled to an allowance of €7,993 so there will be some tax to be paid.

Does the inheritance still have to be declared within six months of her death? Obviously I won't need an escritura de herencia to be drawn up before I can access the funds because the inheritance will be paid to me by her executor once the UK grant of probate is issued and the house sold. Is there a specific form to be returned to Agencia Tributaria in these circumstances, or do I declare the inheritance on next year's tax return?


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## Isobella (Oct 16, 2014)

Lynn R said:


> Have any forum members received an inheritance from a relative in the UK and declared it for Spanish inheritance tax? I would be grateful for information about how the process works and what documentation I would need to provide.
> 
> I am tax resident in Spain and am a beneficiary of my Aunt's Will. She died a few weeks ago and I will receive an inheritance once her house is sold. It won't be a huge amount, but I know that as a Group III relative I will only be entitled to an allowance of €7,993 so there will be some tax to be paid.
> 
> Does the inheritance still have to be declared within six months of her death? Obviously I won't need an escritura de herencia to be drawn up before I can access the funds because the inheritance will be paid to me by her executor once the UK grant of probate is issued and the house sold. Is there a specific form to be returned to Agencia Tributaria in these circumstances, or do I declare the inheritance on next year's tax return?


No idea about the tax in Spain but probate can take as long as a year depending on the estate. If declaring now there maybe thousands due before receiving the inheritance.


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## Lynn R (Feb 21, 2014)

Isobella said:


> No idea about the tax in Spain but probate can take as long as a year depending on the estate.


It's a very simple estate and we already have the funds from her bank account and the proceeds of her life insurance policy as the bank/insurance company didn't require the grant of probate before releasing them. When we went through the probate process for my father's estate it took only a few weeks and last year my nephew did it after my sister died and again it was only a few weeks. From what I have read a large backlog was caused last year after they introduced a new digital system and loads of problems were experienced, but they seem to have reduced that now. 

I was also named as an executor but after my brother and I had dealt with the bank and the insurance company and completed the HMRC and Probate Application forms I have renounced my executorship now and my brother has taken over as it's not practical for me to keep going back to attend the interview at the Probate Registry and deal with the sale of the house. Just got back late last night after 9 days in Manchester and that was more than enough!

Unless the house takes a very long time to sell (and we're pricing it realistically as we don't want the responsibility of it standing empty for ages) I don't anticipate paying the tax will be a problem as the funds should be released before the six-month deadline for declaring in Spain is reached. As we're dealing with the estate and probate ourselves we're not subject to the pace at which solicitors work as I know from friends that they can take forever (and charge a fortune for the privilege).


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## Alcalaina (Aug 6, 2010)

Lynn R said:


> ... Is there a specific form to be returned to Agencia Tributaria in these circumstances, or do I declare the inheritance on next year's tax return?


Yes, Modelo 650. Do it as soon as possible. I did it when my mother died in 2017. I can't renenber whether it was within six months of death or six months of probate, but there's no point in waiting.


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## Isobella (Oct 16, 2014)

But what happens if there is thousands of Euro tax due and the inheritor hasn’t received the amount. Been lots in the Spanish press about families rejecting their inheritance because of the system of having to pay tax on money not yet receivEd.


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## Lynn R (Feb 21, 2014)

Alcalaina said:


> Yes, Modelo 650. Do it as soon as possible. I did it when my mother died in 2017. I can't renenber whether it was within six months of death or six months of probate, but there's no point in waiting.


Thank you.

I don't know how much the inheritance will be, though, until the house is sold. Or is there another method of valuing the property for Spanish IHT purposes? I know if it's a Spanish property they'd use the valor tasación, but there's no such thing in the UK, so how would it be calculated? I could use the estate agent's valuation which we reported on the HMRC Form 205, but the house may end up being sold for less so I'd be paying more IHT than I needed to if I did that.

Can you remember what documentation needed to be submitted with the Modelo 650? I've been looking online and one site said the death certificate, a certified copy of the Will, bank statement, copy of "life insurance contract" and even a copy of the escritura - title deeds I suppose, but as the house will have been sold by the time I get the money I can't see how that would be relevant. If all that really is required I suppose it will all need to be translated into Spanish by a sworn translator as well, more expense.


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## Alcalaina (Aug 6, 2010)

Lynn R said:


> Thank you.
> 
> I don't know how much the inheritance will be, though, until the house is sold. Or is there another method of valuing the property for Spanish IHT purposes? I know if it's a Spanish property they'd use the valor tasación, but there's no such thing in the UK, so how would it be calculated? I could use the estate agent's valuation which we reported on the HMRC Form 205, but the house may end up being sold for less so I'd be paying more IHT than I needed to if I did that.
> 
> Can you remember what documentation needed to be submitted with the Modelo 650? I've been looking online and one site said the death certificate, a certified copy of the Will, bank statement, copy of "life insurance contract" and even a copy of the escritura - title deeds I suppose, but as the house will have been sold by the time I get the money I can't see how that would be relevant. If all that really is required I suppose it will all need to be translated into Spanish by a sworn translator as well, more expense.


I got an estate agent in the UK to value it (pretending I was thinking of selling it, which I wasn't). I used a gestor to do it all.

The obligatory documents were:


Copy of the will
Death certificate
Certificate of probate
HM Land Registry document with details of ownership (my mother's) - I didn't need to present the title deeds.
My passport and NIE
Something showing my present address (I used my IRPF return)

Nothing needed to be translated.


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## Lynn R (Feb 21, 2014)

Alcalaina said:


> I got an estate agent in the UK to value it (pretending I was thinking of selling it, which I wasn't). I used a gestor to do it all.
> 
> The obligatory documents were:
> 
> ...


Thanks, that's great. I should be able to get all those without any problem. Did they accept a photocopy of the will, or did it have to be an official copy from the Probate Registry (not a problem if it does, I can order one once the grant of probate has been issued whilst we wait for the house to be sold). If they don't have to be translated that's a bonus


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## Alcalaina (Aug 6, 2010)

Lynn R said:


> Thanks, that's great. I should be able to get all those without any problem. Did they accept a photocopy of the will, or did it have to be an official copy from the Probate Registry (not a problem if it does, I can order one once the grant of probate has been issued whilst we wait for the house to be sold). If they don't have to be translated that's a bonus


I took originals but the gestor just photocopied everything and sent the copies off with the form. In fact he might have sent them all by email!


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## Alcalaina (Aug 6, 2010)

Isobella said:


> But what happens if there is thousands of Euro tax due and the inheritor hasn’t received the amount. Been lots in the Spanish press about families rejecting their inheritance because of the system of having to pay tax on money not yet receivEd.


That's true, even if you don't sell the house you are still liable to pay tax on its value. But you can defer payment for years.


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## Isobella (Oct 16, 2014)

Alcalaina said:


> That's true, even if you don't sell the house you are still liable to pay tax on its value. But you can defer payment for years.


That’s good. So it would be similar to a charge against a property, like a mortgage debt?


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## Alcalaina (Aug 6, 2010)

Isobella said:


> That’s good. So it would be similar to a charge against a property, like a mortgage debt?


I don't know that much about it to be honest, not having been in that position. But an English bloke I know has been living in a place he inherited from friends nearly ten years ago and still hasn't paid anything. Don't know if it's legal or whether he's just got a wily solicitor who knows the loopholes!


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## Lynn R (Feb 21, 2014)

Alcalaina said:


> I don't know that much about it to be honest, not having been in that position. But an English bloke I know has been living in a place he inherited from friends nearly ten years ago and still hasn't paid anything. Don't know if it's legal or whether he's just got a wily solicitor who knows the loopholes!


I didn't know it was possible to defer declaring and paying the IHT for more than another six-month period after the first six months following the death has elapsed.

Maybe he is doing what a lot of Spanish families do after a family member dies if they can't or don't want to pay the tax - just not declaring the death to Agencia Tributaria and either living in the property themselves or letting someone else live there (maybe renting it informally). Of course they can't sell it in those circumstances because the ownership of the property can't be transferred to them until the IHT is paid, and if they ever do need to sell it the outstanding IHT (plus penalties for late payment) would have to be settled before completion. 

If he inherited from friends the IHT would have been very high as they weren't related in any way.

I can understand why the tax has to be paid before ownership of assets can be transferred, otherwise practically nobody would pay if they got their hands on the money first. But in my opinion it would be preferable if the tax could be paid out of the estate, either the deceased's funds in a bank account or by allowing the property to be sold and the IHT due being retained by the notary and paid to Agencia Tributaria. The Spanish tax authorities wouldn't lose out, in fact they would probably get more in in IHT than they do under the present system.


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## tarot650 (Sep 30, 2007)

It's rare to ask for any help.The wife now is in a similar position to you Lynn.Inheritance tax,is there a threshold on what you can receive withouy paying tax or do you pay tax no matter how small the ammount?


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## Alcalaina (Aug 6, 2010)

tarot650 said:


> It's rare to ask for any help.The wife now is in a similar position to you Lynn.Inheritance tax,is there a threshold on what you can receive withouy paying tax or do you pay tax no matter how small the ammount?


Depends who she inherited it from, if it's a parent or spouse it¡s pretty much tax-free now. Google "succession tax Andalucia" and you'll get a load of lawyers' sites explaining it all.


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## tarot650 (Sep 30, 2007)

Alcalaina said:


> Depends who she inherited it from, if it's a parent or spouse it¡s pretty much tax-free now. Google "succession tax Andalucia" and you'll get a load of lawyers' sites explaining it all.


thanks it is her Aunt' will do a google


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## Lynn R (Feb 21, 2014)

tarot650 said:


> thanks it is her Aunt' will do a google


Hi, an aunt or uncle is a Group III relative and as such the amount which can be received before IHT is due is €7,933.


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## tarot650 (Sep 30, 2007)

Lynn R said:


> Hi, an aunt or uncle is a Group III relative and as such the amount which can be received before IHT is due is €7,933.


many many thanks


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## Lynn R (Feb 21, 2014)

tarot650 said:


> many many thanks


The good news is that I made a slight typo and the allowance is actually €7,993. The bad news is that I've since discovered that there is also a multiplier factor of 1.5882 for Group 3 beneficiaries whose personal wealth is below €402k (which is certainly me!) - meaning that the amount of IHT due will be mulltiplied by 1.5882.

https://www.blacktowerfm.com/news/391-spanish-inheritance-tax-explained


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## tebo53 (Sep 18, 2014)

I am due an inheritance from my mother's will and is likely to be around 24k. My mother was living in Spain at the time of her death. Do I need to declare this inheritance separately or just add it to my declared income? 

I pay taxes to the Spanish government. 

Steve


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## Alcalaina (Aug 6, 2010)

tebo53 said:


> I am due an inheritance from my mother's will and is likely to be around 24k. My mother was living in Spain at the time of her death. Do I need to declare this inheritance separately or just add it to my declared income?
> 
> I pay taxes to the Spanish government.
> 
> Steve


You need to declare it with Modelo 650 straight away, as described above.


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## Pesky Wesky (May 10, 2009)

Alcalaina said:


> I got an estate agent in the UK to value it (pretending I was thinking of selling it, which I wasn't). I used a gestor to do it all.
> 
> The obligatory documents were:
> 
> ...


Is this the kind of thing that will change from region to region because I've been told I will need to translate documents to inherit from my father. and I need "an escritura de herencia" whatever that is in English, from England. Does this document exist in England? Will I need the certificate of probate?

I'm not an executor if that makes a difference.


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## Lynn R (Feb 21, 2014)

Pesky Wesky said:


> Is this the kind of thing that will change from region to region because I've been told I will need to translate documents to inherit from my father. and I need "an escritura de herencia" whatever that is in English, from England. Does this document exist in England? Will I need the certificate of probate?
> 
> I'm not an executor if that makes a difference.


No, an escritura de herencia does not exist in England. 

By the way, my brother received the grant of probate in respect of my aunt's Will last week, just four weeks after the application was submitted. However, we are thinking that in the present circumstances it will be pretty much impossible to sell her house so we will be stuck in limbo for months at least.


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## tarot650 (Sep 30, 2007)

Lynn R said:


> No, an escritura de herencia does not exist in England.
> 
> By the way, my brother received the grant of probate in respect of my aunt's Will last week, just four weeks after the application was submitted. However, we are thinking that in the present circumstances it will be pretty much impossible to sell her house so we will be stuck in limbo for months at least.


Am following this with interest as the wife is in a similar position.It's just 2weeks today since her aunts funeral who was a spinster.The wife knows there was a will made but at the moment it cannot be found.She has been in touch with certain firms who search for wills but when you read the small print they cannot guarantee finding it.Also,wtih whats going on the wife got home to Spain last Monday on the last Easyjet flight before they started cancelling them.Catch 22 situation at the moment but like anything involved like this she will get there eventually but the next headache will be the inheritance tax to pay here in Spain.Have to say the Lobster phone card has come in handy as the amount of phone calls to different people in the UK would have cost a fortune.Also,yourself and everybody else stay safe.


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## Pesky Wesky (May 10, 2009)

Lynn R said:


> No, an escritura de herencia does not exist in England.
> 
> By the way, my brother received the grant of probate in respect of my aunt's Will last week, just four weeks after the application was submitted. However, we are thinking that in the present circumstances it will be pretty much impossible to sell her house so we will be stuck in limbo for months at least.


And the Spanish authorities accepted that this document doesn't exist, or you had to present something official to say that?


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## Lynn R (Feb 21, 2014)

tarot650 said:


> Am following this with interest as the wife is in a similar position.It's just 2weeks today since her aunts funeral who was a spinster.The wife knows there was a will made but at the moment it cannot be found.She has been in touch with certain firms who search for wills but when you read the small print they cannot guarantee finding it.Also,wtih whats going on the wife got home to Spain last Monday on the last Easyjet flight before they started cancelling them.Catch 22 situation at the moment but like anything involved like this she will get there eventually but the next headache will be the inheritance tax to pay here in Spain.Have to say the Lobster phone card has come in handy as the amount of phone calls to different people in the UK would have cost a fortune.Also,yourself and everybody else stay safe.


Tell her not to worry if a Will can't be found - if someone dies intestate then her next of kin (or any close relative I think) can apply for probate and what is called Letters of Administration will be issued in place of the grant of probate. That's what happened when my sister was killed last year as she had not made a Will. That gives the person to whom they have been granted authority to get access to all the assets, liquidate them and distribute them to the beneficiaries, just the same as a grant of probate.

Yes, my husband has a Lobster SIM and like yourselves we have found it a Godsend not only whilst my aunt was ill and when we had to liaise about the funeral, but also now to keep in touch with family and friends without incurring large phone bills.

Hope you and those around you are staying safe too.


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## Lynn R (Feb 21, 2014)

Pesky Wesky said:


> And the Spanish authorities accepted that this document doesn't exist, or you had to present something official to say that?


I haven't got as far as having to present anything, I'm not declaring the inheritance in Spain yet (may even decide to renounce it in favour of my brother) as I've no idea how much it is going to amount to. Even when we are finally in a position to get the house sold, I read somewhere that house prices in the UK are predicted to fall by 20% as a result of the CV crisis so it is likely to fetch much less than the estate agent's original valuation.


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## Alcalaina (Aug 6, 2010)

Lynn R said:


> I haven't got as far as having to present anything, I'm not declaring the inheritance in Spain yet (may even decide to renounce it in favour of my brother) as I've no idea how much it is going to amount to. Even when we are finally in a position to get the house sold, I read somewhere that house prices in the UK are predicted to fall by 20% as a result of the CV crisis so it is likely to fetch much less than the estate agent's original valuation.


Well, in Andalucia at least, you are supposed to make the declaration within six months of death, or ask for an extension:



> Plazos de Presentación
> Sucesiones (transmisiones por causa de muerte): seis meses a contar desde el fallecimiento del causante. Puede solicitarse prórroga para la presentación por un plazo de otros seis meses, con devengo del interés de demora. Dicha solicitud debe presentarse dentro de los cinco primeros meses del plazo.


https://www.juntadeandalucia.es/age...nfo_contribuyente/presentacion/sucesiones.htm


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## Lynn R (Feb 21, 2014)

Alcalaina said:


> Well, in Andalucia at least, you are supposed to make the declaration within six months of death, or ask for an extension:
> 
> 
> 
> https://www.juntadeandalucia.es/age...nfo_contribuyente/presentacion/sucesiones.htm


I know, that's why I'm considering whether to renounce it, or if I don't, I'd have to pay a penalty if I hadn't declared within 6 months. If I declared it now I'd have to pay the IHT on the full amount according to the estate agent's valuation of the property which is now, due to unforeseen circumstances, likely to be much higher than what it might actually fetch once it can eventually be sold. I don't think estate agents are classed as essential workers, and even if they were, this is a property which can only be sold to a cash buyer as it's unmortgageable so is only likely to be of interest to a builder wanting to reform it and sell it on. Not going to be many of those around in the near future.


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## Catalunya22 (Apr 25, 2020)

*Why?*

Why would you declare it to the Spanish authorities?
They have no way of knowing you received an inheritance.


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## Pesky Wesky (May 10, 2009)

Catalunya22 said:


> Why would you declare it to the Spanish authorities?
> They have no way of knowing you received an inheritance.


Yes, they do


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## Pesky Wesky (May 10, 2009)

BTW I was asked for translations and an apostille here in Comunidad de Madrid. but they are not doing apostilles at the moment due to Corona Virus so had to give in this letterhttps://www.get-document-legalised.service.gov.uk/images/FCO_Legalisation_Letter.pdf


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## Lynn R (Feb 21, 2014)

Catalunya22 said:


> Why would you declare it to the Spanish authorities?
> They have no way of knowing you received an inheritance.


For one thing, that would be tax evasion. Also, under the automatic exchange of financial information agreement which came into force in 2016, banks are obliged to report account balances to your country of residence. If my closing balance at the end of 2020 is significantly higher than it was at the end of the previous year, and I have not reported corresponding income on my annual tax return, Agencia Tributaria are likely to want to know where the money came from. If you think they wouldn't bother, we have heard from several forum members in the recent past about them having received demands from AEAT regarding tax on foreign pensions which UK authorities have informed them of.

https://www.blevinsfranks.com/News/BlevinsFranks/Article/exchange-of-information-2016-2017-spain


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## Lynn R (Feb 21, 2014)

Plus, if an inheritance takes your overseas bank account above the €50k limit for the Modelo 720 and you have not declared it, you are liable for some very big fines indeed.


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## Catalunya22 (Apr 25, 2020)

And how is that then?


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## Catalunya22 (Apr 25, 2020)

Don´t declare it. They will never know.
Governments want us to believe they exchange financial information...but they don´t have the capability.

If the receiver of the inheritance has it paid into their UK account and then transfers it to their Spanish account they have no way of knowing.


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## Lynn R (Feb 21, 2014)

Catalunya22 said:


> Don´t declare it. They will never know.
> Governments want us to believe they exchange financial information...but they don´t have the capability.
> 
> If the receiver of the inheritance has it paid into their UK account and then transfers it to their Spanish account they have no way of knowing.


Will you pay the tax and the fines if I follow your advice and don't declare it, and it is subsequently picked up by Agencia Tributaria?

By the way, encouraging people to act illegally is against the rules of this forum. The moderators will not like it.


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## Catalunya22 (Apr 25, 2020)

Fine. Pay the tax then.


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## Megsmum (Sep 9, 2012)

Catalunya22 said:


> Fine. Pay the tax then.


Or alternatively, return to the U.K. follow their rules rather than live in Spain and dodge tax.

Same old, same old. Spanish person moves to U.K. avoids paying inheritance tax they’re criminals, english move to Spain, avoid tax, their classed as clever


What other taxes do you recommend we avoid.


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## Overandout (Nov 10, 2012)

Each year they catch more people for not declaring assets outside of Spain. 

Up to August last year they had caught 5,000 people. And as said above, the fines are usually more than the amount undeclared.

Other than the legal side (TBH I'm amazed that someone who could be identified would come on a public site and suggest that they don't pay their tax), there's also the ethical side. Especially in times like this, when every public cent counts for the good of the country we live in, to be told we should effectively steal from each other is unbelievable....


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## Catalunya22 (Apr 25, 2020)

Fine. But you´re quite happy for the Government to steal some of your inheritance.


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## Megsmum (Sep 9, 2012)

Catalunya22 said:


> Fine. But you´re quite happy for the Government to steal some of your inheritance.


Fine... that’s the word everyone is looking for!


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## Pesky Wesky (May 10, 2009)

Catalunya22 said:


> Fine. But you´re quite happy for the Government to steal some of your inheritance.


Don't think anyone said anything about being happy.


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## Overandout (Nov 10, 2012)

Taxation is not theft. It is written into the law of the land that I choose to live in.

Do I like it? No, of course not, free things are much better, but I like the fact that there was a doctor for me the last time I was ill, that my kids can go to school, that there are streetlights in my road... I think you get where I'm going with this. 

Or, maybe not.


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## Megsmum (Sep 9, 2012)

Catalunya22 said:


> Fine. But you´re quite happy for the Government to steal some of your inheritance.


Personally I’m happy for the government to... in your words “steal” my inheritance, I am unhappy that people like you “ steal” the money for yourselves, instead of it being used for public services such as education, health, transport etc. 

Still, I’m sure you came on specifically looking for a fight... enjoy your day


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## kaipa (Aug 3, 2013)

When my mother in law died in Spain there was no will registered or found. The lawyer informed hacienda. We had to wait 4 years. After 4 years we had to get the property placed in the names of sisters and brothers. House sold and no inheritance tax had to be paid.


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## Catalunya22 (Apr 25, 2020)

My day will be fine...thank you.
My original comment was supposed to help you....but with your holier than thou attitude you decided to have a go at me.
I´m assuming that you have never avoided VAT or IVA by asking someone what is the price of a job "for cash"
Also don´t forget most Government officials are as corrupt as hell.... with their bank accounts in some tax haven. They just want to fleece the working and middle class.
Enjoy your day.


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## Karinea (Nov 21, 2021)

Alcalaina said:


> I got an estate agent in the UK to value it (pretending I was thinking of selling it, which I wasn't). I used a gestor to do it all.
> 
> The obligatory documents were:
> 
> ...


I have just posted a new thread. Very interested to hear no translations or apostillations required! Very onerous. Did you do it yourself? Could you help me and advise?


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## Karinea (Nov 21, 2021)

Alcalaina said:


> I got an estate agent in the UK to value it (pretending I was thinking of selling it, which I wasn't). I used a gestor to do it all.
> 
> The obligatory documents were:
> 
> ...


How much did the gestor charge, and did you pay within the 6 months? Did you inherit only property or chattels, and gifts, and how were they valued?


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## Karinea (Nov 21, 2021)

Karinea said:


> How much did the gestor charge, and did you pay within the 6 months? Did you inherit only property or chattels, and gifts, and how were they valued?


Did they accept ordinary copies?


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## Alcalaina (Aug 6, 2010)

Karinea said:


> How much did the gestor charge, and did you pay within the 6 months? Did you inherit only property or chattels, and gifts, and how were they valued?


The fee was around €250. There was no tax to pay as the total value of the inheritance (property and a small amount of cash) was well below the threshold. As I said earlier, I had the house valued by an estate agent In the U.K., and that was fine. No translations were needed. I had to present the original documents to the gestor to complete the form, but he did it all within a week.


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## Karinea (Nov 21, 2021)

Alcalaina said:


> The fee was around €250. There was no tax to pay as the total value of the inheritance (property and a small amount of cash) was well below the threshold. As I said earlier, I had the house valued by an estate agent In the U.K., and that was fine. No translations were needed. I had to present the original documents to the gestor to complete the form, but he did it all within a week.


Please could you let me know the name and details of the gestor? I would like to use him.. where is he based? Thanks


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## Alcalaina (Aug 6, 2010)

Karinea said:


> Please could you let me know the name and details of the gestor? I would like to use him.. where is he based? Thanks


I'll PM you. He's actually a qualified abogado.


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## kaipa (Aug 3, 2013)

Is there a non-resident inheritance tax? For example if a parent lived in Spain but the inheritance asset was in UK and the receivers were the children in UK, Would the children be expected to pay inheritance tax in Spain ?
I just wonder as in Spain ( unlike UK) IHT is the burden of the person inheriting whereas in UK it is raised on the estate.


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## Lynn R (Feb 21, 2014)

No. If the assets are held in the UK and the inheritors are tax resident in the UK, they are not liable to pay inheritance tax in Spain - only on any assets the deceased held in Spain.


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## kaipa (Aug 3, 2013)

Lynn R said:


> No. If the assets are held in the UK and the inheritors are tax resident in the UK, they are not liable to pay inheritance tax in Spain - only on any assets the deceased held in Spain.


What about if someone changed the deeds on a property?. For example, if you were divorced and both names were on the UK deed. If the person who gave their half to the other was Spanish resident and the other was UK resident- would that gift/ donación be liable to Spanish succession tax? Or is the tax liability only on the one who receives?. Which in this case would be the UK resident.


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## Lynn R (Feb 21, 2014)

kaipa said:


> What about if someone changed the deeds on a property?. For example, if you were divorced and both names were on the UK deed. If the person who gave their half to the other was Spanish resident and the other was UK resident- would that gift/ donación be liable to Spanish succession tax? Or is the tax liability only on the one who receives?. Which in this case would be the UK resident.


p

I think only a Spanish tax professional could answer that one, but my guess would be that it would depend on whether the Spanish resident's share of the property had been transferred into the name of the UK resident BEFORE the date of inheritance or not. I would not think that the transfer could take place retrospectively in order to avoid Spanish IHT. But that is just a personal opinion and not one that would carry any weight with Hacienda.


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## kaipa (Aug 3, 2013)

Lynn R said:


> p
> 
> I think only a Spanish tax professional could answer that one, but my guess would be that it would depend on whether the Spanish resident's share of the property had been transferred into the name of the UK resident BEFORE the date of inheritance or not. I would not think that the transfer could take place retrospectively in order to avoid Spanish IHT. But that is just a personal opinion and not one that would carry any weight with Hacienda.


But isnt inheritance tax in Spain raised on the the recipient of the donation as opposed to in UK where it is raised on the estate and has nothing to do with status of recipient? So although the assets belonged to a Spanish resident they were not on Spanish soil and the recipient was not a Spanish resident.


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