Lagoo

I've been reading about this for a week now and my head's spinning.

The issue is I'm due to inherit about £250k from my Mum, mainly from her UK property.

As an executor I can pay myself this calendar / Spanish tax year or wait until January.

Of course I'll have to pay tax on this amount, and presumably there's no getting out of it or reductions.

This may or may not qualify me for the wealth tax, depending on how they value UK property (presumably at cost value like the 720?) and what's classed as pension rights (again, is it the same as on the 720?).

I wrote to a few tax advisors and only one wrote back, saying they'll talk to me for 150€ + IVA. It seems a stupid waste of money to pay that only to be told they'll get their gestor to sort it all out.

So back to the question of the title: do I need a tax advisor or just a gestor and let them work out what's due?

Many thanks for any replies.

Fred James

I assume from your post that you are tax reident in Spain,but which region do you live in. IHT allowances can be very high in some regions.

A gestor can handle the paperwork for you.

Lynn R

As your location is shown as Santander, may we assume you are a resident of Cantabria? If that's correct, it looks as though you would not need to pay any inheritance tax as Cantabria has already exempted spouses, children and parents from paying it, and that will change to include siblings as well from January 2024.

El Impuesto de Sucesiones en Cantabria: cuánto hay que pagar por recibir una herencia - Infobae

You will still need to declare the inheritance, though, so even if it is the case that no tax will be due you will still need to consult a gestor about completing the return.

1sexsmith

The OP will need a lawyer. First they need a copy of death certificate, passport and copy of the probate. The relevant paperwork must be registered within 6 months of death. The value of the IH is then completed on a form. Most regions have effectively nullified IHT for groups 1 and 2 with Valencia boletín being recorded on Friday. Despite the fact that few people will pay tax the death and inheritance must be formally registered and a new 720 submitted.

Notdunroamin

You're inheriting a quarter mil and quibbling about paying €150 to get professional advice.

Priceless!

Lagoo

Yes I'm living permanently in Cantabria.

Well that's rather good news!

Thanks, good to know. I have all that having dealt with the UK tax people and others so hopefully no problems.

Thanks for the replies. I'll get on to a gestor and see where it leads.

snikpoh

Stupid question but "why?" If mother was a UK resident, then what does a lawyer in Spain actually do?

1sexsmith

The lawyer needs to register the potential inheritance. The death certificate and probate need to be registered within 6 months. If you didn't register in Spain the inheritance then you would face problems explaining how you came into the money especially if you transferred it to Spain. Essentially you would have to declare it on a 720. If you didn't register it as an inheritance and prove it you would face tax and fines.

Lynn R

But all of those things could be done by a competent gestor. A lawyer might be needed if an escritura de herencia needed to be drawn up but it would probably be possible to go directly to a notary for that, and in this case it wouldn't apply as the estate has already been through probate in the UK enabling the executor(s) to distribute the funds.

snikpoh

I still don't accept that a death in the UK needs to be registered in Spain within 6 months!

I agree the inheritance needs to be properly declared etc. but not the physical death

Can you clarify please Fred James

Fred James

Of course the death does not need to be registered in Spain. However a uk death certificate may need to be included on the IHT. paperwork.

There is a big difference between registering a death and providing a copy of the death certificate.

1sexsmith

Yes. The death isn't registered per se but you need to present the death certificate, letter of probate etc for proof of the source of the inheritance. All this requires to be done within 6 months of death not 6 months of probate. The fact that probate can easily take 6 months in UK is problematic but if you register the death early you get given an extension for completing the process.

snikpoh

How strange, until probate, you may not know if you are inheriting anything