07 Oct 2015 11:45 AM:

Hi clg 1972, sorry to say, if you are a Spanish resident, as far as I can see you will be potentially liable to pay tax in Spain on  both properties. The fact that your Nan has never been a resident  in Spain is irrelevant. My mother never lived here but I am paying tax here on the proceeds of her will in the UK. The amount you pay depends on where you live. If it's Andalusia you have to pay approx 20% of the value of her Uk propery if it's worth over 175k euros. The figures might be completely different if you live in Murcia or Alicante for example...

Thread: Inheritance Tax Laws

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07 Oct 2015 11:45 AM:

Hi clg 1972, sorry to say, if you are a Spanish resident, as far as I can see you will be potentially liable to pay tax in Spain on  both properties. The fact that your Nan has never been a resident  in Spain is irrelevant. My mother never lived here but I am paying tax here on the proceeds of her will in the UK. The amount you pay depends on where you live. If it's Andalusia you have to pay approx 20% of the value of her Uk propery if it's worth over 175k euros. The figures might be completely different if you live in Murcia or Alicante for example...

Thread: Inheritance Tax Laws

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06 Oct 2015 9:57 PM:

Yeah - but passport numbers change every time you get a new one - my accounts are all at least 2 or 3 passports old...and as far as NI numbers are concerned - doubt if the spanish authorities even know what they are - I've certainly never been asked for mine in the 25 years I've been living here. 

Thread: Inheritance Tax Laws

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06 Oct 2015 9:13 PM:

Hi Roberto - it is indeed an interesting issue and as you suggest, along with the 720,  it's probably something the vast majority of people know nothing or very little about...

The 720 rule could potentially affect huge numbers of people since it kicks when you own assets worth 50,000 euros as I understand it.

On the other hand - being devil's advocate - how exactly do the Spanish tax authorities know what the Brits are up to in the UK since their assets/bank accounts are not linked to any ID number?

 

 

 

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Thread: Inheritance Tax Laws

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06 Oct 2015 7:20 PM:

Hi Johnzx  I don't think I stated anywhere that it was disgusting;  that was in the comment by The Line.  I said it was unfair, largely because of the fact that as soon as you exceed the threshold, the threshold ceases to exist. Hence my comment: "Pity the poor soul who inherits 175,100...they lose aproximately 35,000 euros, whereas the person who inherits 174,900 is able to keep it all."

Say what you like - this seems to me to be completely illogical and grossly unfair. If the threshold was applied as in my opinion it should be, I would be paying something like 25,000 which is still a considerable sum, I'm sure you'd agree. 

As far as the rest of your comments are concerned, I don't think anyone decides on moving somewhere based on what the inheritance laws are - or perhaps some people do - but not me. When you're 30 years old and you move to Spain it's probably the last thing on your mind. 

All that I was remarking on is that it was a considerable shock to discover that Andalusia could levy such a huge amount of tax on an income that has nothing to do with the region at all and I was asking if anyone else had had a similar experience. 

I wouldn't be at all surprised if the majority of people knew nothing about it at all and simply didn't declare assets they've recieved from a foreign will because they didn't know they had to.

Thread: Inheritance Tax Laws

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