Puerto Pollensa Travel Guide
Before You Go
Flights
Package Holidays
Latest Special Offers!
All-Inclusive Hotels
Hotels & Aparthotels
Private Villas/Apts to Rent
Villa Companies
Local Rental Agents
Cruises
Car Hire
Airport Transfers & Taxis
Travel Insurance
Late Deals!
Currency
Holiday Shopping
Background Info
Language
Books
Events & Fiestas
Climate & Weather
Art & Culture
Flora & Fauna
Links
Discussion Forum
Once You're There
Maps
Airport Directions
Tourist Information
Eating Out
Buses & Trains
Music & Entertainment
Excursions & Days Out
Shopping & Markets
Kids
Beaches
Walking, Cycling
Boat Charters
Sailing/Watersports
Market Place
Boats & Yachts
Property For Sale
Businesses For Sale
Property Services
Local Services
MouseMats & T-shirts
Computers
Internet Services
Virus Protection
PuertoPollensa.com discussion forums

Go Back   Pollensa Forum > LIVING & WORKING IN POLLENSA > Living & Working in the Pollensa Area

Living & Working in the Pollensa Area This forum is for any comments, questions and advice about living (permanently or temporarily) and working in the Pollensa area. Aimed at ex-pats, property owners etc.

Like Tree2Likes
  • 1 Post By Disorderly
  • 1 Post By Ger

Reply
 
LinkBack Thread Tools Display Modes
  #1  
Old 10-01-2018, 19:04
*****
 
Join Date: Feb 2008
Location: Lancaster
Posts: 587
Default Spanish Inheritance Tax

My wife and I are retiring and are planning the purchase of an apartment in PP, for our own and family holiday use only as non residents. This Forum has been invaluable to research the costs involved in buying, locating a local solicitor, choosing a bank and understanding ongoing costs and taxes.
As a result, we have a good grasp of all that and are coming out in March and April to seek a property......we feel so lucky to be able to finally do this.

However, thereís one thing I canít get my head around (though I suppose the solicitor will) and that is the inheritance tax question. We are a married couple planning to buy in joint names (though that involves two NIE numbers and annual returns as I understand it), and we have two grown up sons ( our sole beneficiaries).

So here is where Iím struggling......if one of us snuffs it, whatís the Spanish inheritance tax liability. Iíve read countless articles and remain thoroughly confused. Any ideas?
El Gordo likes this.
Reply With Quote
Sponsored Links
  #2  
Old 10-01-2018, 20:25
*****
 
Join Date: Feb 2009
Location: West Yorkshire
Posts: 1,091
Default

I am sure someone will be able to give you detailed advice on this one - but I do know from our own experience years ago that it is very important to make a 'Spanish' will regarding the property. Best of luck with your new venture
Reply With Quote
  #3  
Old 10-01-2018, 23:23
*****
 
Join Date: Feb 2008
Location: Lancaster
Posts: 587
Default

Thanks Rosie.....good advice.
Reply With Quote
  #4  
Old 11-01-2018, 10:37
Deanscroft's Avatar
*****
 
Join Date: Feb 2010
Location: Puerto Pollenca
Posts: 434
Default

When making a Spanish Will if you are non-Spanish, non-Resident, be sure to include the phrase 'Estate to be dealt with under the inheritance laws of the United Kingdom'. If the will doesn't include this then it will be governed by Spanish law. Under Spanish law your estate is divided up according to a formula set down here which will not necessarily be how you want it divided. Very broadly under Spanish law the first third goes to the first direct heir, the second third is divided equally amongst all the direct heirs, and only the last third can you decide.
Reply With Quote
  #5  
Old 11-01-2018, 18:29
*****
 
Join Date: Feb 2008
Location: Lancaster
Posts: 587
Default

Thanks Deanscroft. Where I may be confused is that I gained the impression that even if one makes wills as you suggest, there is still a tax liability on the beneficiaries. Perhaps Iím mistaken?
Reply With Quote
  #6  
Old 11-01-2018, 20:00
*****
 
Join Date: Aug 2008
Location: Puerto Pollensa
Posts: 2,070
Default

There is a tax liability. If one dies then the other person has to pay tax on the deceased 50% share of the property. Someone will correct me if I'm wrong but I believe they have now bought non residents in line with residents and although it varies all the time at the moment I think it is 1%.
Reply With Quote
  #7  
Old 11-01-2018, 21:12
*****
 
Join Date: Feb 2008
Location: Lancaster
Posts: 587
Default

Thanks Lillipop. That sounds reassuringly and unexpectedly painless. Another box ticked and something else not to worry about.

Your response much appreciated.

Duncan
Reply With Quote
  #8  
Old 12-01-2018, 10:31
Deanscroft's Avatar
*****
 
Join Date: Feb 2010
Location: Puerto Pollenca
Posts: 434
Default

Not quite.
The tax liability depends on the relationship. The closest (son or daughter) pays the least, second is the wife/husband, then it increases the more distant the relationship.
Reply With Quote
  #9  
Old 12-01-2018, 16:38
***
 
Join Date: Nov 2017
Location: Surrey
Posts: 26
Default

Gosh....hadn't given this a moments thought! Better get it sorted ourselves!
Reply With Quote
  #10  
Old 12-01-2018, 17:00
car77's Avatar
*****
 
Join Date: Apr 2009
Posts: 138
Default

Disorderly - I've sent you a PM
Reply With Quote
  #11  
Old 13-02-2018, 13:31
Ger Ger is offline
Under Moderation
 
Join Date: Mar 2017
Location: Puerto Pollensa
Posts: 1
Smile Lawyer

Hello, i recommend you to contact Alfonso Benavides in Pollensa. Heīs a lawyer and specialist in tax advising. Thy speak good english!
Tangoman likes this.
Reply With Quote
  #12  
Old 13-02-2018, 18:32
*****
 
Join Date: Feb 2008
Location: Lancaster
Posts: 587
Default

Thanks Ger.
Reply With Quote
Reply

Bookmarks

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are Off
Refbacks are On


Similar Threads
Thread Thread Starter Forum Replies Last Post
Inheritance Tax illeslex Living & Working in the Pollensa Area 1 19-08-2015 18:25
Inheritance and Gift Tax. End of the differences between Residents and No Residents? illeslex Living & Working in the Pollensa Area 0 16-09-2014 11:02
Non Resident Inheritance Tax jamesfshaw Living & Working in the Pollensa Area 7 22-08-2012 22:19
spanish sim suzi8 Internet, Telephones & Mobile Phones 11 29-06-2012 12:52
Spanish-English-Spanish Dictionary Portofan Books, Guides and Maps 12 10-04-2006 07:40


All times are GMT +1. The time now is 12:15.


Powered by vBulletin® Version 3.8.8
Copyright ©2000 - 2018, vBulletin Solutions, Inc.
Search Engine Friendly URLs by vBSEO 3.6.0
(c) Copyright Holiday Webs Ltd 2011