Go Back  British Expats > Living & Moving Abroad > Europe > Spain
Reload this Page >

Inheritance Tax - IHT - Married Couples

Inheritance Tax - IHT - Married Couples

Old May 15th 2012, 6:22 pm
  #1  
Forum Regular
Thread Starter
 
Joined: Nov 2011
Posts: 39
factseeker is an unknown quantity at this point
Default Inheritance Tax - IHT - Married Couples

Hi,

Considering maybe buying a property in the Vieja Baja region.

Has anyone any information ref IHT between married couples.

Have heard of problem cases - on the other hand from reading I understand that the Comunidad Valenciana gives a 99% relief on
any demands.

So that although on paper it could be onerous - in reality it is pretty much insignificant.

I am talking of a situation where Wills as necessary are drawn up correctly and both husband and wife are Spanish 'resident'.

Hope to hear.

Rgds.
FS
factseeker is offline  
Old May 15th 2012, 6:50 pm
  #2  
 
Fred James's Avatar
 
Joined: Jun 2006
Location: Granada Costa
Posts: 10,931
Fred James has a reputation beyond reputeFred James has a reputation beyond reputeFred James has a reputation beyond reputeFred James has a reputation beyond reputeFred James has a reputation beyond reputeFred James has a reputation beyond reputeFred James has a reputation beyond reputeFred James has a reputation beyond reputeFred James has a reputation beyond reputeFred James has a reputation beyond reputeFred James has a reputation beyond repute
Default Re: Inheritance Tax - IHT - Married Couples

Unlike the UK there is no automatic relief for inheritances by spouses. That means that if you and your wife are joint owners, when one dies the other will inherit half of the house and pay tax on the value of that half.

If it was the family home then there is a 95% reduction if the property is retained for 10 years. In addition there are various different rules in certain regions. In Valencia there is a reduction of the tax rate up to 99 % for the descendants, ascendants, and the living spouse who were Spanish residents in the Valencia region at the time of the death.

There was a recent thread about IHT which you may find useful. You can find it at http://britishexpats.com/forum/showthread.php?t=756385
Fred James is offline  
Old May 15th 2012, 9:53 pm
  #3  
BE Forum Addict
 
SueG's Avatar
 
Joined: Jul 2006
Location: up the mountain near Guadalest
Posts: 1,389
SueG has a reputation beyond reputeSueG has a reputation beyond reputeSueG has a reputation beyond reputeSueG has a reputation beyond reputeSueG has a reputation beyond reputeSueG has a reputation beyond reputeSueG has a reputation beyond reputeSueG has a reputation beyond reputeSueG has a reputation beyond reputeSueG has a reputation beyond reputeSueG has a reputation beyond repute
Default Re: Inheritance Tax - IHT - Married Couples

Originally Posted by factseeker
Hi,

Considering maybe buying a property in the Vieja Baja region.

Has anyone any information ref IHT between married couples.

Have heard of problem cases - on the other hand from reading I understand that the Comunidad Valenciana gives a 99% relief on
any demands.

So that although on paper it could be onerous - in reality it is pretty much insignificant.

I am talking of a situation where Wills as necessary are drawn up correctly and both husband and wife are Spanish 'resident'.

Hope to hear.

Rgds.
FS

The important point is that you need to be a fiscal resident
SueG is offline  
Old May 16th 2012, 5:48 am
  #4  
Senior Moment
 
Mitzyboy's Avatar
 
Joined: Jan 2006
Location: On the edge
Posts: 20,460
Mitzyboy has a reputation beyond reputeMitzyboy has a reputation beyond reputeMitzyboy has a reputation beyond reputeMitzyboy has a reputation beyond reputeMitzyboy has a reputation beyond reputeMitzyboy has a reputation beyond reputeMitzyboy has a reputation beyond reputeMitzyboy has a reputation beyond reputeMitzyboy has a reputation beyond reputeMitzyboy has a reputation beyond reputeMitzyboy has a reputation beyond repute
Default Re: Inheritance Tax - IHT - Married Couples

Originally Posted by SueG
The important point is that you need to be a fiscal resident
and therefore you need to make a nil tax return even if you dont think you need to
Mitzyboy is offline  
Old May 16th 2012, 2:38 pm
  #5  
Forum Regular
Thread Starter
 
Joined: Nov 2011
Posts: 39
factseeker is an unknown quantity at this point
Default Re: Inheritance Tax - IHT - Married Couples

Originally Posted by Mitzyboy
and therefore you need to make a nil tax return even if you dont think you need to
Thnxs Fred James / SueG / Mitzyboy- understood.

Worry always is when looking for revenue - rules get changed - but no way to budget for that sort of thing.

Difficult decision to be made - my wife is french and as they say - you can take the girl out of France but not France out of the girl ;o)) - so she would prefer France.

But I have been waiting for the crash for some time and now there are real property bargains about.

Only problem is I now hear all manner of things ref living in Spain - in particular ref the activities of 'undesirables' - so difficult.

I lived in Spain many many years ago for a 2 year period and we loved it - but since then so many places in the world seem to have changed.

Trying to do my researches before a decision.

Best Rgds.
FS.

Last edited by factseeker; May 16th 2012 at 3:05 pm.
factseeker is offline  
Old May 17th 2012, 2:27 am
  #6  
Senior Moment
 
Mitzyboy's Avatar
 
Joined: Jan 2006
Location: On the edge
Posts: 20,460
Mitzyboy has a reputation beyond reputeMitzyboy has a reputation beyond reputeMitzyboy has a reputation beyond reputeMitzyboy has a reputation beyond reputeMitzyboy has a reputation beyond reputeMitzyboy has a reputation beyond reputeMitzyboy has a reputation beyond reputeMitzyboy has a reputation beyond reputeMitzyboy has a reputation beyond reputeMitzyboy has a reputation beyond reputeMitzyboy has a reputation beyond repute
Default Re: Inheritance Tax - IHT - Married Couples

Originally Posted by factseeker
Thnxs Fred James / SueG / Mitzyboy- understood.

Worry always is when looking for revenue - rules get changed - but no way to budget for that sort of thing.

Difficult decision to be made - my wife is french and as they say - you can take the girl out of France but not France out of the girl ;o)) - so she would prefer France.

But I have been waiting for the crash for some time and now there are real property bargains about.

Only problem is I now hear all manner of things ref living in Spain - in particular ref the activities of 'undesirables' - so difficult.

I lived in Spain many many years ago for a 2 year period and we loved it - but since then so many places in the world seem to have changed.

Trying to do my researches before a decision.

Best Rgds.
FS.
What, you mean Brits?

Everywhere changes Factseeker. The Britain that I remember back in the 60's when I was a kid no longer exists really. Spain is definitely changed since we moved here and I reckon its around 30 years behind the UK in many ways. Its catching up fast and I'm not sure eventually it will be a place I am still content to live in. However, thats a few years away yet I think, so I will enjoy it whilst I can
Mitzyboy is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Contact Us - Manage Preferences - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Your Privacy Choices -

Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.