# Denia - Inheritance Tax



## jimiansville (Oct 11, 2011)

Hi folks looking for some advice on Inheritance Tax.

We are about to make an offer on a villa in Benidoleig close to Denia on the northern Costa Blanca. We are concerned Inheritance Tax when one of us dies and have had conflicting advice. It appears to vary from region to region but does anyone know how we stand in the Denia area.


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## jojo (Sep 20, 2007)

jimiansville said:


> Hi folks looking for some advice on Inheritance Tax.
> 
> We are about to make an offer on a villa in Benidoleig close to Denia on the northern Costa Blanca. We are concerned Inheritance Tax when one of us dies and have had conflicting advice. It appears to vary from region to region but does anyone know how we stand in the Denia area.



In general, Spains inheritance laws are quite different to those in the UK. I'm not 100% sure of them so I wont repeat what I know - others on here will probably be more "au fait" with it all. But you really must get professional advice if its of concern to you


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## xabiaxica (Jun 23, 2009)

jojo said:


> In general, Spains inheritance laws are quite different to those in the UK. I'm not 100% sure of them so I wont repeat what I know - others on here will probably be more "au fait" with it all. But you really must get professional advice if its of concern to you


yes, and they _can_ vary from region to region


what's more though, is that they can also change with frightening regularity - so what is true today won't necessarily be true in the months or years to come


for instance 'wealth tax' was effectively abolished a few years ago & has recently been re-introduced


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## djfwells (Sep 28, 2009)

Have you considered maybe buying the porperty as a UK regsitered company ? - Shares can distributed between the two of you, and bequeathed to one another in the event of a death


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## Alcalaina (Aug 6, 2010)

Don't know about Denia but I understand that in Andalucia if the surviving spouse lives in the house for five years after the other one dies they get a 99% reduction in the inheritance tax.


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## jimiansville (Oct 11, 2011)

I've found some information on the internet saying that in the Valencia region there is a 99% reduction if you have been a resident for 5 years prior to the death of your partner but nothing about having to remain a resident for 5 years after their death.


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## Stravinsky (Aug 12, 2007)

djfwells said:


> Have you considered maybe buying the porperty as a UK regsitered company ? - Shares can distributed between the two of you, and bequeathed to one another in the event of a death


Yes ... well ... Winchcombe .... I'm sure you've never heard of them 

I believe you can end up paying £5k to essentially set up a limited company. Good money for some!


Based on my unfortunate knowledge of knowing some people who have been in that position around here, if you become a Spanish resident and put your tax returns in like the good expat thyat you should be then if you own the house between you 50/50 and are married then in the unfortunate event of one of you passing on the survivor will pay next to no inheritence tax. This has been the same now here for at least 5 years.

The crap hits the fan I'm afraid when the survivor passes on, and then if the house is left to your non resident children they pay a lot more than they would if your home was in the UK. The allowances are quite low compared to the UK


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## Alcalaina (Aug 6, 2010)

jimiansville said:


> I've found some information on the internet saying that in the Valencia region there is a 99% reduction if you have been a resident for 5 years prior to the death of your partner but nothing about having to remain a resident for 5 years after their death.


Unfortunately all the ACs have different rules, and as someone said earlier, they keep changing!

There's a good summary of different regional policies here:
Inheritance Tax in Spain | AngloINFO Spain


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