08 Feb 2013 6:09 PM:
Hi
I was wondering if anybody could help me with some Spanish property tax issues? I am travelling to Spain next week to have a meeting with a lawyer about it all but I want to try and gather some information first so any help or advice would be gratefully accepted. Here's the situation:
Mother in law moves to Spain with fiancée in 1998 having bought a house for roughly £50k the year before
After 12 months fiancée passed away
2 years later new partner moves in
New partner spends money on the house increasing its value to an estimated €250,000
2 years ago separates from partner
We know that the deeds were never updated for the extension and swimming pool.
Fiancées will was not originally recognised in Spain and stated that his share of the property be held in trust for my husband and fiancées son, which is apparently not recognised in Spain. We have now had will translated and it is now lodged and recognised with the powers that be.
We also suspect that as the deeds were not updated that the appropriate tax has not been paid since the extension was built.
What we want to do:
Remove fiancées name from deeds to enable future selling of property and to simplify things if anything were to happen to mother in law.
My queries are:
Do you think that there is a hefty tax bill waiting for us further down the line?
Would there be any inheritance tax issues?
What about capital gains tax?
If we sorted out the deeds etc could the property be transferred to mother in laws son? If so what tax implications would there be?
If anything were to happen to mother in law would next of kin be liable for any tax debt? If so could the house be sold to settle the debt?
Mother in law is a Spanish resident but does not work. She pays a basic tax.
Many thanks for taking the time to read this and I appreciate any feedback you may have. We just want to get all affairs in order as its been lingering for too long.
Regards
Thread:
Advice on Spanish property tax
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