snikpoh

Yes, Spain is exactly the same but depending where you live, there are allowances to be taken into account. This may make it cheaper to will someone rather than transferring to the - I simply don't know the detail.

When you say "whichever country's laws govern a Will" - it's actually where ever you are resident!

I don't think a notary is the correct person, I would suggest a tax adviser (assesor fiscal) or lawyer (abogado)

dmu

No, in France it's the fact of being property located in France which counts! If you have a holiday home in France, your heirs will pay French Inheritance Tax on it (depending on its value and their allowances).
A French Notaire gives advice on all fiscal aspects of property conveyancing, including donations. We donated our house to our two daighters over the years (no tax if the donation is spread over several years), a handy (legal) way of avoiding Inheritance Tax for them, and we have usufruct for our lifetimes.
(This is probably all off-topic if the laws are different in Spain!)

snikpoh

That's really interesting though.

Any donations in Spain are still covered by gift tax but I wonder what happens with 'small' sums of money. ISTR it used to be that one could gift £7k each year free of tax in UK - do they have the same concept in Spain.

Also, how did you gift the property over a number of years? Did the deeds need updating each year to reflect the differing percentage holdings?

dmu

To be honest, I left all that to the Notaire and my French OH!

johnnyone

I haven't looked in to this in great detail but from what I can make out Spanish IHT rates rise as the value of the estate rises. At around an estate value of 200k euro's this seems to be around 20%.

Spanish Inheritance Tax guide and FAQ (Part I) - Spanish Property Insight

I have no idea whether there are allowances that can be offset against IHT, so the best thing must be to seek specialist advice.

From a practical point of view it does seem to me it is best to divest your Spanish assets before you die to avoid leaving behind a potential mess.

My trouble is that I keep putting things off so may never get round to doing anything!

snikpoh

I agree about getting proper advice but what your link does NOT mention is the various, regional allowances

johnnyone

I knew there were regional allowances but didn't think they made that much difference. Looking at Valencia they appear to be extremely generous.

When/if I get round to it I shall definitely seek advice.

A lot depends on the children. No point keeping if they will not use as I do not let them out.
Hopefully that position is many years away

Fred James

Andalucia has just changed its regional allowances and they are also now very generous.

Inheritance Tax Novelties in Andalusia & FAQ on IHT in Spain - Spanish Property Insight

xvt

Slightly off topic, but is it possible to register an interest in a Spanish property? My father has owned an apartment since 1974, and due to an accident is now no longer of sound mind. He doesn't have either and English or Spanish will and my stepmother intends to sell it even though she is not on the deeds and cannot have Spanish Power of Attorney. The property was originally bought to benefit myself and my brother and obviously I wish to stop any sale!

lucilastic

I doubt if your step-mother can sell,don`t think she would get past the notario if she tried.Better appoint a Spanish lawyer,allow him to act for you.