THE Tenerife Forum Online Community - View Single Post - Spanish Inheritance Tax

Rachael · 27-10-09, 15:27

I thought that I had better start this thread to go alongside the one about market research.

I found out all the facts surrounding Spanish Inheritance Tax (ISD) in dribs and drabs. Once the whole picture was clear I was very worried and very cross.

The worst aspects of this tax as far as I am concerned are firstly that there is no exemption between husband and wife (unless you are both legitimate fiscal residents here, have been for specific lengths of time and intend to remain so in the medium term) and secondly that the tax is levied on the beneficiary of the Will, not the estate of the deceased. This means that if a Spanish property is owned jointly, when one spouse dies the other has a potentially very significant tax bill to pay just to keep on owning the house that they bought together with their husband or wife!! Because any assets owned on death (including jointly owned property or joint bank accounts) are frozen until probate fees and tax due have been paid, the house can't be sold by the beneficiary to meet the debt.

Another scary fact is that there is no dual taxation treaty between Spain and the UK on inheritance tax. There can't be because the tax is levied on two entirely separate entities. If you have enough value in your estate to be subject to UK inheritance tax (£650k for a couple) then you could pay tax on your Spanish property twice!

People have thought that they were leaving their children a valuable and useful legacy, and instead they have left them a massive debt and a nightmare of Spanish officialdom. And we all know what that can be like

!

The whole concept shocked me into doing some research on the internet. I found a company based in both the UK and Spain that has come up with a legal and straightforward solution to the problem. You can look at everything in detail and request a free personal illustration of your situation by going to winchamiht.com

I was so impressed by the simplicity of the solution (and how it also meant that I would pay less tax on my Spanish villa rentals) that I flew to England and did a training course with them. I am now a consultant for Wincham Consultants here in Tenerife. I have followed their advice personally and now have peace of mind when it comes to Spanish Inheritance Tax. If I had found out all the information I know now earlier then I would also be considerably better off as it is possible to use the system for shielding your property from ISD to pay significantly less tax when you purchase it.

Please feel free to ask about any aspect of the above or what you read on the website. I am also happy to take PMs about personal situations.

27-10-09, 15:27	#1 (permalink)
Rachael Join Date: Jul 2009 Location: Tenerife Posts: 729 Thanks: 1,666 Thanked 569 Times in 336 Posts	Spanish Inheritance Tax - do you know the facts? I thought that I had better start this thread to go alongside the one about market research. I found out all the facts surrounding Spanish Inheritance Tax (ISD) in dribs and drabs. Once the whole picture was clear I was very worried and very cross. The worst aspects of this tax as far as I am concerned are firstly that there is no exemption between husband and wife (unless you are both legitimate fiscal residents here, have been for specific lengths of time and intend to remain so in the medium term) and secondly that the tax is levied on the beneficiary of the Will, not the estate of the deceased. This means that if a Spanish property is owned jointly, when one spouse dies the other has a potentially very significant tax bill to pay just to keep on owning the house that they bought together with their husband or wife!! Because any assets owned on death (including jointly owned property or joint bank accounts) are frozen until probate fees and tax due have been paid, the house can't be sold by the beneficiary to meet the debt. Another scary fact is that there is no dual taxation treaty between Spain and the UK on inheritance tax. There can't be because the tax is levied on two entirely separate entities. If you have enough value in your estate to be subject to UK inheritance tax (£650k for a couple) then you could pay tax on your Spanish property twice! People have thought that they were leaving their children a valuable and useful legacy, and instead they have left them a massive debt and a nightmare of Spanish officialdom. And we all know what that can be like ! The whole concept shocked me into doing some research on the internet. I found a company based in both the UK and Spain that has come up with a legal and straightforward solution to the problem. You can look at everything in detail and request a free personal illustration of your situation by going to winchamiht.com I was so impressed by the simplicity of the solution (and how it also meant that I would pay less tax on my Spanish villa rentals) that I flew to England and did a training course with them. I am now a consultant for Wincham Consultants here in Tenerife. I have followed their advice personally and now have peace of mind when it comes to Spanish Inheritance Tax. If I had found out all the information I know now earlier then I would also be considerably better off as it is possible to use the system for shielding your property from ISD to pay significantly less tax when you purchase it. Please feel free to ask about any aspect of the above or what you read on the website. I am also happy to take PMs about personal situations. __________________ "You can complain because roses have thorns or you can rejoice because thorns have roses."