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Whether you are looking to buy property on the Costa Blanca or already own property in Spain
then you should really look at the consequences of Spanish inheritance tax.
What are the consequences of Spanish inheritance tax?
Not many people are aware of the taxes payable when an owner of a property in Spain passes away. If you have never been told about the details of inheritance tax in Spain, it's simply this:
In Spain it is the person or persons who inherit who pay so it doesn?t really matter what the laws of the country are where you come from. One major difference in Spain to the UK is that there is no marriage exemption in Spain for non domiciled persons, if the property is in the joint names of a married couple the surviving spouse will be liable for inheritance tax on the value of the half they inherit. All bank accounts in the deceased name even joint accounts will be frozen and the beneficiaries will not have access to that money until they have paid their inheritance tax All assets including the property are frozen and can not be sold until the inheritance tax is paid. In the UK because it is the property that is taxed the beneficiaries are able to obtain a bridging loan to cover the tax, in Spain it is individuals who inherit so they will be unable to obtain a bridging loan from the banks. If your beneficiaries are non resident in Spain they may be liable for a tax bill that they may not be able to afford. Spanish inheritance tax can be very high and if you own property in Spain of any value, you should seriously consider restructuring your asset to protect it in the future. There is now a simple way to structure the ownership of your property and if you or your dependants are likely to be badly affected by this tax then it may be worth considering transferring the property into the name of a UK company. By transferring your property in Spain into a UK Limited Company you have no requirement for Lawyers in Spain as it is all dealt with back in the UK, no probate, no freezing of any Spanish bank accounts. You maintain full control at all times. You can rent the property, sell it, raise funds on it, just the same as you can right now. Your new structure is guaranteed safe and effective in removing any potential Spanish inheritance tax bills This is a simple solution, costing less than most probate and legal fees in Spain when there is a death of an owner of property. Can you be absolutely sure that those you leave behind will have the money to cover those costs?
If you would like to know what it's going to cost your beneficiaries to inherit your estate, ........It won't cost you a penny, but it could save you thousands.
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