Spanish Inheritance Tax - How Much Money Can You Save ?
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You may not realise this but Inheritance Tax in Spain is a much worse deal than Inheritance Tax in the UK.
*UK 2010 BUDGET UPDATE*
We are very pleased to inform you that there is nothing in the UK April 2010 budget that is prejudicial to the continuing implementation and smooth running of any asset restructuring strategy that we promote.
In fact if anything, the further pension penalties imposed by the Chancellor will make the A-Day Pension Plan, Remuneration Trust and Employer Funded Retirement Benefits Scheme arrangements of even more interest to clients wishing to maximize pension asset accessibility for immediate use and investment, and to protect gross profit and remove dividend and income tax from their lives.
There is no tax free inheritance from spouse to spouse, instead when you die your share of your estate is assessed by the Spanish taxman for inheritance tax and the post-tax value is added to the survivor’s estate, the tax owing lies as a debt until you sell the property or you die yourself and your share (including what you inherited from your spouse which if you remember had already been taxed once) is subjected to inheritance tax.
Next: in the UK you have a £312,000 allowance to offset against inheritance tax, so £624,000 for a married couple – but in Spain it is just €15,957… which is peanuts really!
Thirdly: when you die the inheritance tax has to be paid in full within six months of your death before your beneficiaries can inherit your estate. If you are late paying then there are penalties applied as there are if your estate doesn’t have the money to make the payment and your property has to be sold – now how long would your property take to sell at the moment I wonder…….?
Fourth: well, your Spanish property is part of your worldwide estate for UK taxation purposes and as you are likely to be UK Tax Domiciled even though you might be resident in Spain your villa will be assessed for inheritance tax in the UK after your death; then, as often happens, another tax bill for your estate to settle may be the result if your worldwide estate exceeds your two UK nil rate bands.
So it is very important that you provide yourself with protection against Spanish Inheritance Tax, it is just one of the things you have to do otherwise the value of your legacy to your beneficiaries will take a hammering.
Fortunately there are ways to protect your Spanish property from this insidious tax. The one we offer through our wealth protection specialists does not involve a mortgage or the investment of your property’s value in what today are very risky investment bonds which cost a fortune to run.
No matter how much the value of your property you can definitely make useful savings with this scheme, just fill in the form below with your details and tell us how much your property is worth, submit your enquiry and you will be contacted by our wealth protection specialist who will be pleased to assist you.
