factseeker

Hi,

I am considering buying a property and living in Spain with my wife.

I have spent some years now in self sustaining agriculture in SE Asia and notice some nice little farm properties for sale along the south coast of Spain.

Thing putting my off right now is the IHT situation in Spain - in particular should I die first.

But also the possibilities of a 'hit' ref any future 'bail in' - that in particular because there seems to be particular interest in 'global' assets at the present time.

Has anyone considered the possibility of a Bank 'Bail In' in Spain??

Any thoughts anyone from those already 'in situ'.

Best Rgd.
FS.

Dxf

Hi

As was asked to me by my financial advisor - "Why do you want to own your own home when you are going to die before your children? Do you want to give the taxman your hard-earned cash rather than your children"?

In other words, why not let your children buy a property for you (with your own cash)?

Davexf

amideislas

I'd say you have a clever financial adviser. Others might say he's a tax cheat, but I'd argue he's just (perfectly legally) getting the most he can from a greedy tax system that aspires to take the most it can get.

Dxf

Blevins Franks back in 2002 !!!

Davexf

missile

Be nice to your kids, they will choose your care home.

I have read too many horror stories of kids who pack the parents off then squander the cash.

billgates

Inheritance tax is pure government theft.
It should be abolished the world over.

Capital gains tax on the other hand, crank that one up to 100% less inflation.

Capital gains is unearned income. Money for nothing. Justifiably taxed. Causes speculation and price bubbles.

Inheritance is more likely to be money your parents earned and saved through hard work. What right does a government have to steal it?

Just saying like.

Lynn R

I've nothing against purchasing a property in the children's name, but people do need to be aware of the fact that things can sometimes go awry even if they think it could never happen within their own family. Even if there isn't a serious falling out between a parent and child, if one of the children has an acrimonious divorce and the spouse demands their share of the asset, you could find yourself having to buy out their "share" of your own house. Also, of course, the children would need to submit a non-resident tax return and pay the non-resident tax every year, as they are the nominal owners of the property, and would be liable to pay CGT if they wish to sell the property after your death.

snikpoh

Wow, someone else who uses this quote.

My eldest keeps threatening me with this one - "be kind to me or else ... after all, I'm the one who gets to choose your care home!"

missile

LOL

Unfortunately for a significant number of oldies it is not so funny. On a UK forum, I frequently see heart breaking stories from those who have gifted all their assets to their offspring and are left penniless, with no home and dependent on state hand outs.

amideislas

... not to mention that it's already been taxed. In some cases, taxed 2 or 3 times by the time the kids inherit it...

Dxf

Hola

Perhaps I should add that I have an usufructo - the right to live in the house for the rest of my days. Therefore should there be an acrimonious divorce, they can´t get me out of the house to sell it BUT they can sell their "quarter?" off

Davexf

pete_l

Capital (and consequently the gains or losses made from letting other people use it) is what keeps commerce alive. If everybody just kept their money stashed under the bed, nobody would be able to borrow to start a business or to finance expansion. Nobody would be able to borrow to buy a house and there would be nothing for anybody to inherit.

Neptuno

A usofructo is no use to a widow who needs all the assets left by her husband to move on with her life, buy somewhere else, downsize, go back to the UK etc
if the children buy or own the property they have all the problems Of taxes maintenance etc.The government should either raise the state allowance to a realistic level, or restructure the inheritance laws so that IHT is only payable on the estate, once the 2 joint owners have died, with a decent threshold, of course.
While IHT, especially in relation to expats, is such a goldmine to the Spanish tax office, I bet they'll do NOTHING!

chopera

Yes and of course children work hard to earn all the money they inherit.

If your parents worked hard for it then they can spend it as they wish, or spend it on their children. But spare me the crap about inheritance tax. It's one of the fairest and most meritocratic taxes out there.

Dxf

Firstly I am single; but secondly, in the vast majority of cases, if a widow wants to move back etc., then it is usual for the kids to help

But I do agree, that one has to be sure that ones kids are reliable and trustworthy

Davexf