You may be aware of this already, but it’s something many people who own property in Spain don’t know. It’s about the taxes payable when an owner of property in Spain passes away.
If you have ever wondered about the details of inheritance tax, it’s simply this:
Your hard earned legacy may have to be sold off to pay crippling tax bills when you pass away?
Spanish Inheritance tax, death duties , legal fees – up to 40%.
So, right now, can you be absolutely sure that those you leave behind will have the money to cover those costs? Of course we would all prefer our children and grandchildren to enjoy the property we’ve worked so hard to own, and not be forced to sell it to cover onerous tax demands. Equally as worrying, did you know that in the UK system of IHT, a husband or wife is usually an exempt beneficiary?
But in the Spanish system…
Your husband or wife will not be exempt from Spanish Inheritance Tax. It’s a sobering thought, isn’t it?
So, while it’s not something we like to dwell on can I ask you…
“Have you considered what will happen to your dream of leaving something of value to your children when you depart this world”? The harsh reality is that your gift could become a financial burden that your loved ones simply can’t pay off. How much debt? – When you take into account Spanish death duties, inheritance tax, legal, agency fees and accounting fees in both Spain and the UK, and other ‘incidentals’….certainly 40%, but maybe as much as 50% of the value of your property!
What is the difference between Death Duties in the UK and IHT in Spain? In the United Kingdom, it is the estate of the deceased that is subject to taxation. In Spain however, it is the individuals who inherit that are taxed. This means that if you don’t plan ahead, and start now, the cold fact is that a huge chunk of your wife or children’s inheritance will go in taxes. With that in mind, may I ask a final, pointed question? “You know what happens if you don’t plan, so are you happy right now with what you have done about it”?
I’m sorry if that question seems blunt, but we need to be realistic and take direct action to stop our hard earned money from being grabbed by the tax man. But what action can you take today to protect the property you worked so hard to own, in the future? The good news is that you CAN take a positive step, and do it right now! Up until now, there have been very few legal strategies to side step Spanish Inheritance taxes. Now there is a simple way to organise your property and keep the money out of the tax man’s pocket.
To learn more please visit the Palm Finance website.