Usufructs

In several parts of the world, spouses can give each other a usufruct of their share of the jointly owned property in order to ensure each spouse has piece of mind in the event of death of the other. The usufruct in essence says the surviving spouse can live in the deceased spouses share of the property until the surviving spouse also dies. However, in Spain this arrangement ALSO seems to attract a tax liability as it is regarded as a "gift."

Does anyone have any specific factual information on this aspect?

Hi Feeg

I have come across these websites . Links below. 

http://spain.angloinfo.com/money/general-taxes/inheritance-tax/

http://www.costaluzlawyers.es/services/inheritance-law/

Hope they are of some assistance to you

Legal tip 944. IHT on my usufruct as a widow

Legal tip 451. UK-Spain Probate Cases V

This message was last edited by mariadecastro on 03/03/2014.

Maria de Castro

A friend of mine died recently.  About a year ago he inherited a property on the death of his wife.  Being qualified as per your info,  he gained the 99% allowance.

However, having now died before the 10 years is up, what is the tax situation for his heirs in relation to the allowance he received, he having failed to keep it 10 years ?

Dear John:

The allowance he had is consolidated with his death.

Sorry I do not understand that.

No one inherit the obligation ( stay for 10 years) that the allowance had attached. He did not fail on meeting it, he died and with him, this obligation.

Better now?

Maria

OK thank you, I understand. 

Excellent!

I am glad I was able to make me undestood!

Maria