# Spanish Inheritance Tax - Help Needed



## Dubai1 (Feb 2, 2009)

Hi Guys,

I am hoping someone may be able to help. Basically I co-own a villa in Spain with my Dad (we have 50% share each) in the deeds with no mortgage. My Dad is concerned about inheritance tax and wants to plan ahead, not a nice subject I know, but he is insistent!! 

I understand that if either of us were to pass away, we would be treated under Spanish law and a large chunk of either of our inheritance would be taken by the authorities. Can anyone confirm the exact situation?

Also I want to understand if any of you have any experience of setting up an offshore company as I believe that once the villa is split into shares, in the event of one of the shareholders death, his or her shares would be transferred to the other shareholder with no tax liability. Again can anyone confirm this?

Finally, does anyone know of a good English speaking lawyer in the Alicante region that they could recommend and who could set this up for us?

Really appreciate any input or advice.

Many thanks,

D1


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## Stravinsky (Aug 12, 2007)

Dubai1 said:


> Hi Guys,
> 
> I am hoping someone may be able to help. Basically I co-own a villa in Spain with my Dad (we have 50% share each) in the deeds with no mortgage. My Dad is concerned about inheritance tax and wants to plan ahead, not a nice subject I know, but he is insistent!!
> 
> ...


Not enough information
Is your Dad a registered Spanish Tax resident?
Are you a Spanish resident?
Where exactly is the property? Is it in the Valencia region?
Are you an EU citizen?
Are there wills made both in Spain and the UK?

Yeds, I know a good lawyer in the Northern CB who made up my wills


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## Dubai1 (Feb 2, 2009)

Stravinsky said:


> Not enough information
> Is your Dad a registered Spanish Tax resident?
> Are you a Spanish resident?
> Where exactly is the property? Is it in the Valencia region?
> ...


Hi thanks for the response...... 

No he is not a registered Spanish Tax resident.

So not sure exactly what qualifies as a Spanish residetn, he has an NIE, works in Saudi and spends half his time in Spain, the other in the UK when not working. I guess he is a British resident at the end of the day.

The property is 5 mins out of Alicante town

I am a British citizen.

Only my Dad has a UK will, I am about to get mine made up having not made one before.


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## Stravinsky (Aug 12, 2007)

Dubai1 said:


> Hi thanks for the response......
> 
> No he is not a registered Spanish Tax resident.
> 
> ...



This is going to get slightly complicated, and I suggest you seek a gestoria or solicitor to help you. Valencia has different IHT laws to most of Spain. What I do know is that you need Spanish and British wills normally mirroring each other.

If you are both non residents in Spain and use the home in effect as a holiday home then the property is taxable as a non resident home.

Spanish IHT can be very high when the estate is left to a non resident I'm afraid, and the property cant be sold to pay the tax bill. In Valencia when a property is left to a resident spouse who has owned half of it the IHT is nearly zero, but I'm not sure how it would work in the same situation with father and son


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