Inheritance / uk and spanish assets
#1
Thread Starter
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Joined: Dec 2011
Posts: 253

Just looking for a bit of guidance before seeing a solicitor so any tips will be gratefully received.
Married, non resident but in spain for more than 183 days a year ( so technicaly tax resident).
Only asset in spain is house - assets in uk include 2 houses rented out for pension.
One daughter in uk ( over 21) no other children.
Questions - should i have seperate wills for uk and spain ?
On which will do i put that i want uk law to apply to uk assets - or do i need a seperate doc for that declaration?
Can uk law also apply to spanish assets ?
Can i stipulate that houses to go to daughter but for wife to receive rent from them ( or live in them) till she dies. If this has to be done via a trust, are there uk tax Implcations ?
Hope to hear from others in similar situations. Apologies for all the questions but will probably have more, depending on the replies i get
Married, non resident but in spain for more than 183 days a year ( so technicaly tax resident).
Only asset in spain is house - assets in uk include 2 houses rented out for pension.
One daughter in uk ( over 21) no other children.
Questions - should i have seperate wills for uk and spain ?
On which will do i put that i want uk law to apply to uk assets - or do i need a seperate doc for that declaration?
Can uk law also apply to spanish assets ?
Can i stipulate that houses to go to daughter but for wife to receive rent from them ( or live in them) till she dies. If this has to be done via a trust, are there uk tax Implcations ?
Hope to hear from others in similar situations. Apologies for all the questions but will probably have more, depending on the replies i get
#2
In your Spanish will it is recommended that you have a clause stating that you wish your assets to be dealt with under English law in order for you not to become tangled up with the Spanish law of succession.
I have copied this from a previous thread for you. Hope that it helps.
The bequeather states that this Will is possible in accordance
with their personal law, and does not prejudice or obstruct any
Will executed in their own country or any other country other
than Spain, declaring that it is their wish that the laws of
heirship of their country of nationality are applied to their heirs´
successions, that of England and Wales.
and
The bequeather states that he wishes the disposition of
their assets, rights and shares to be under the provisions of the law of
the bequeathers nationality as provided for under Civil Code
Article 9(8) and the EU Succession Regulations,
650/2012 Article 22.
La testadora manifiesta que esta disposición que
ahora otorga, es posible con arreglo a su Ley personal
y no prejuzga ni impide cualquier otra que pudiera tener
otorgada en su paÃs de origen o en otro distinto del de
España, declarando que es su voluntad que sean aplicadas
las normas sucesorias del paÃs de su nacionalidad a su sucesión,
en concreto las de Inglaterra y PaÃs de Gales
Rosemary
I have copied this from a previous thread for you. Hope that it helps.
The bequeather states that this Will is possible in accordance
with their personal law, and does not prejudice or obstruct any
Will executed in their own country or any other country other
than Spain, declaring that it is their wish that the laws of
heirship of their country of nationality are applied to their heirs´
successions, that of England and Wales.
and
The bequeather states that he wishes the disposition of
their assets, rights and shares to be under the provisions of the law of
the bequeathers nationality as provided for under Civil Code
Article 9(8) and the EU Succession Regulations,
650/2012 Article 22.
La testadora manifiesta que esta disposición que
ahora otorga, es posible con arreglo a su Ley personal
y no prejuzga ni impide cualquier otra que pudiera tener
otorgada en su paÃs de origen o en otro distinto del de
España, declarando que es su voluntad que sean aplicadas
las normas sucesorias del paÃs de su nacionalidad a su sucesión,
en concreto las de Inglaterra y PaÃs de Gales
Rosemary
#3
Thread Starter
Forum Regular




Joined: Dec 2011
Posts: 253

Many thanks, Rosemary - presumably the uk will dealing with the uk assets will automatically be settled according to uk law ?
Last edited by mikeglover; Jun 14th 2017 at 10:06 pm. Reason: Extra content
#4
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Joined: Nov 2012
Posts: 1,643











A you are still UK domiciled then your world wide assets are taxed by the UK on death. The clause that Rosemary is suggesting basically tells the Spanish tax authorities that double tax should not be charged as you are not either a resident or domicile of Spain.
How that all works out after Brexit is anyone's guess !!
How that all works out after Brexit is anyone's guess !!
#5
Sorry, but that is not correct. The fact that you are domiciled in the UK does not affect Spanish Inheritance tax. It merely gives the UK the right to tax you. Spain couldn't care less about domicile - the concept does not exist in Spain. If you are resident in Spain then you will pay Spanich IHT.
The clause that Rosemary quoted has nothing whatsoever to do with tax. It is about the Spanish succession law, which rules exactly who you can leave your property to. If you are not a Spanish citizen, you can opt to apply the succession law of your country of nationality rather than Spanish law. The clause has to be in your Spanish will, otherwise it will revert to Spanish law. It has nothing to do with tax.
There is a double taxation treaty between Spain and the UK, but it does not cover IHT. You will pay tax twice, but there is a normal concession that you can deduct UK tax paid from Spanish tax. However, that can be very complicated or even impossible as the IHT in the UK is paid in total by the estate, not by the individual beneficiary. In Spain there is no concept of the estate and the tax is paid by the individual.
Brexit is irrelevant. The rule about this clause is EU law and anyway does not apply in the UK as they opted out. Irrespective of Brexit, Spanish law will apply and whether you cease to be an EU citizen after Brexit or not, it is irrelevant as it applies to all residents irrespective of nationality.
The clause that Rosemary quoted has nothing whatsoever to do with tax. It is about the Spanish succession law, which rules exactly who you can leave your property to. If you are not a Spanish citizen, you can opt to apply the succession law of your country of nationality rather than Spanish law. The clause has to be in your Spanish will, otherwise it will revert to Spanish law. It has nothing to do with tax.
There is a double taxation treaty between Spain and the UK, but it does not cover IHT. You will pay tax twice, but there is a normal concession that you can deduct UK tax paid from Spanish tax. However, that can be very complicated or even impossible as the IHT in the UK is paid in total by the estate, not by the individual beneficiary. In Spain there is no concept of the estate and the tax is paid by the individual.
Brexit is irrelevant. The rule about this clause is EU law and anyway does not apply in the UK as they opted out. Irrespective of Brexit, Spanish law will apply and whether you cease to be an EU citizen after Brexit or not, it is irrelevant as it applies to all residents irrespective of nationality.
Last edited by Fred James; Jun 20th 2017 at 12:50 am.
#6
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Joined: Apr 2017
Posts: 878











I have property in Spain where I am a fiscal resident,also assets in Gibraltar.I was told that I could write out a Spanish will,as Rosemary has stated in those words,to include both Spanish & British assets.This was said to me by a British legal person.However I was doubtful(& have previously had 2 separate wills) so got a 2nd.opinion from a qualified British lawyer working in a Spanish Lawyer,s group.I will take that later advice.If you have assets in different countries make separate wills I think is the best way.
#7
It is normal to have separate wills to avoid conflicts and confusion. I have never seen any advice to the contrary.





