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House in mine & Brothers names

House in mine & Brothers names

Old May 17th 2021, 2:47 pm
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Default House in mine & Brothers names

Hi all.
I am throwing this out there for any general advice if known by anyone that has gone through a similar process. Obviously full legal advice would be sought at the time of doing the deed,

Our parents house was left to my brother & i when they passed away 3 years ago. A solicitor sorted out all parents affairs into our names. My brother now would like his half of the house in cash as he has no intentions of living in Spain but i do. Has anyone gone through this situation & would like to comment..

thanks in advance
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Old May 17th 2021, 8:49 pm
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Default Re: House in mine & Brothers names

First the house needs to be put in both your names. To do this you will need NIE numbers for yourselves and your spouses ( if married) After this you will need to go to a notary to convert the deeds to your names. This can be done by power of attorney. The value of the property will be noted on the deed. If you have the funds you will be able to pay your brother however tax will be paid. After this you would then need to go back to the notary and change the deeds again I imagine. It is a bit of a hassle and quite expensive doing all this. Better is to just get names on deeds and sell. There is usually always some tax to pay. Not to mention the notary fees. Obviously you need a lawyer and cash if you wish to keep the property.
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Old May 18th 2021, 3:27 pm
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Default Re: House in mine & Brothers names

Hi Chipmonk thanks for the response. Both brother and I have NIE's & the solicitor that dealt with our affairs put the house into me & brothers name. There is also a value fig on the deeds which is sooo small that all we can work out is that it is possibly just land value and/or land & cost of build ? There is no way we would sell it for that...
thanks
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Old May 18th 2021, 3:48 pm
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Default Re: House in mine & Brothers names

Originally Posted by Flyingbanana
Hi Chipmonk thanks for the response. Both brother and I have NIE's & the solicitor that dealt with our affairs put the house into me & brothers name. There is also a value fig on the deeds which is sooo small that all we can work out is that it is possibly just land value and/or land & cost of build ? There is no way we would sell it for that...
thanks
I suppose it depends if you have the cash to buy out your brother. The valuation is always going to be a bit of an estimate as there isn't a reliable website like in UK. If you can agree a price you will need to redo the deeds again which is expensive in Spain compared to UK but it will be the only way to make the property legally yours.
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Old May 18th 2021, 4:00 pm
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Default Re: House in mine & Brothers names

The valuation would be the "official" one on which the inheritance tax was based (taken from the IBI bill for the property together with the municipal co-efficient for the local authority where it is located). Very often this can bear no relation to the market value - often it is much lower but in some circumstances (if catastral values in an area have not been updated for a long time and property values have dropped) it can actually be higher.

It's the same problem that can lead to property buyers facing bills for additional transfer tax if they buy a "bargain" for a price much lower than the "valor tasacion" and Hacienda subsequently bill them for the difference between the amount of transfer tax they paid and what is due according to the official valuation.
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Old May 19th 2021, 7:55 am
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Default Re: House in mine & Brothers names

Originally Posted by Lynn R
The valuation would be the "official" one on which the inheritance tax was based (taken from the IBI bill for the property together with the municipal co-efficient for the local authority where it is located). Very often this can bear no relation to the market value - often it is much lower but in some circumstances (if catastral values in an area have not been updated for a long time and property values have dropped) it can actually be higher.

It's the same problem that can lead to property buyers facing bills for additional transfer tax if they buy a "bargain" for a price much lower than the "valor tasacion" and Hacienda subsequently bill them for the difference between the amount of transfer tax they paid and what is due according to the official valuation.
Hi Lynn, thanks to you for the reply. I must confess when the Spanish solicitor sorted out all our affairs when parents died & put property into our names, there was no tax to pay which was a shock. The deeds mention something like 30,000 euro ? Again thanks for all the info
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Old May 19th 2021, 8:05 am
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Default Re: House in mine & Brothers names

Originally Posted by Flyingbanana
Hi Lynn, thanks to you for the reply. I must confess when the Spanish solicitor sorted out all our affairs when parents died & put property into our names, there was no tax to pay which was a shock. The deeds mention something like 30,000 euro ? Again thanks for all the info
In some regions (Andalucia, for example) the inheritance tax allowances are now much more generous than they used to be, and Group 1 and 2 relatives (children, parents, grandchildren) can now inherit around €1M without paying any inheritance tax. The allowances are far, far smaller for more distant relatives or non relatives.
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Old May 19th 2021, 10:37 am
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Default Re: House in mine & Brothers names

I would go to the gestor that did the name change and ask him to change it again.

Then pay off your brother..
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Old May 19th 2021, 11:06 am
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Default Re: House in mine & Brothers names

thanks all
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