Property Prices in Port de Pollenca

[prattyIG8]

Even without Brexit we were advised to have a Spanish Will when we bought our property anyway as there are different laws surrounding the time allowed to lay claim to a property etc if no Spanish will is found. It was a very easy process with our lawyers and I would always recommend having a will in the country you are buying to cover you for all applicable laws.

[Rockape]

Back to Jaimethelad's opening question about house prices and I saw yesterday that house prices in the Balearics rose in the second qtr by 8.4%. Clearly, different areas and different types of property, but it's certainly a relief for all of us who have bought recently, that we haven't made a major financial error. When you think that prices have risen for 18 consecutive qtrs, totalling 31%, then 8.4% was a huge rise. I wonder why?

As ever, unless you are selling it is inconsequential, but still nice to know!

[JPALCOVER]

Originally Posted by Disorderly

For some years there has been an agreement that for EU residents, inheritance tax is set at 1% of property value, so not a massive hit.

Any confirmation (source of info?)?
My understanding is that the property in Spain is subject to standard Spanish inheritance tax but that in some "Autonomic regions", in particular Madrid and the Balearic islands, there is a 99% rebate on the inheritance tax due provided that……..


the deceased owner is a resident of Spain at the time of his or her death

AND

his or her heirs are residents of Spain (currently challenged afore the CoEJ, with a view to make all EU resident heirs eligible to the 99% rebate).
,

[Gp1602]

Originally Posted by JPALCOVER

Any confirmation (source of info?)?
My understanding is that the property in Spain is subject to standard Spanish inheritance tax but that in some "Autonomic regions", in particular Madrid and the Balearic islands, there is a 99% rebate on the inheritance tax due provided that……..


the deceased owner is a resident of Spain at the time of his or her death

AND

his or her heirs are residents of Spain (currently challenged afore the CoEJ, with a view to make all EU resident heirs eligible to the 99% rebate).
,

We have just had this confirmed by our solicitor in the Port. 1% inheritance tax if there is a Spanish will in place.

[its cd]

Originally Posted by Gp1602

We have just had this confirmed by our solicitor in the Port. 1% inheritance tax if there is a Spanish will in place.

No help after 29th May unless you all live in an EU country

[bobley]

Does it really matter though... you wont be here to have to deal with it?

[Big Sal]

According to Blevins Franks Living in Spain Guide, for Balearics there is only a 99% allowance for children under 21. Cataluna is possible for a 99% tax relief on inheritance for spouses only. There are many other reliefs depending on relationship to the deceased. I am reading this from the Blevins Franks guide and would personally be interested on what condition applies to which you have been advised.

[Big Sal]

Originally Posted by bobley

Does it really matter though... you wont be here to have to deal with it?

Unless you care for and love those who you leave behind, 'It is the recipient, not the donor who pays tax'.

[bobley]

Originally Posted by Big Sal

Unless you care for and love those who you leave behind, 'It is the recipient, not the donor who pays tax'.

Charming. I dont think thats in any doubt. Christ, he can sell my camper van to pay the tax bill but it doesn't mean I can do anything in the meantime to change the spanish tax laws.

[Big Sal]

I agree. Plus, Spanish laws have a habit of changing!
Best thing we can do is to prepare/plan according to current legislation, with the aim of making it as easy and less painful for the beneficiaries, who will already be suffering from bereavement.

[Big Sal]

Originally Posted by Big Sal

According to Blevins Franks Living in Spain Guide, for Balearics there is only a 99% allowance for children under 21. Cataluna is possible for a 99% tax relief on inheritance for spouses only. There are many other reliefs depending on relationship to the deceased. I am reading this from the Blevins Franks guide and would personally be interested on what condition applies to which you have been advised.

Apologies. I missed a table! Blevins guide reflects the below.

Extract from 2018 How the recent changes in Spanish Inheritance Tax will affect you?

'In the Balearic Islands there is a 99% bonus over the tax figure for children under 21 (group I). There is a reduction on the tax base of € 25,000 per each beneficiary of group II (spouse, children over 21 and parents). That amount goes also higher for children under 21. Both groups (I and II) are taxed at 1% up to 700,000 €; at 8% from 700,001 € to 1,000,000 €; at 11% from 1,000,001 € to 2,000,000 €; at 15% from 2,000,001 € to 3,000,000 €; and at 20% from 3,000,001 € onwards. 100% of the habitual residence is deducted from the tax base up to a maximum of 180,000 € per heir (children, parents and spouse) who have lived with the deceased'.