Hi its been a while since my last post but I appear to be going around in circles on this one so any advise would be much appreciated.

Over the past 4 years I have been building a house on some family land owned by my grandmother. The project had all the correct permissions, licence to build etc etc. Now the property is finished (and im living in it) I am keen to get it formally registered and start paying the local council tax etc.

The first step I am told is that for it to be registered in my name I have to own the house and the land. My grandmother is happy to give / sell the land to me for a nominal sum however I have come to understand that its not as simple as this, the land / and the house will be valued and there could be some form of tax liability.

There is also the option of just inheriting the land and house however I am worried about the tax implications here as well. I have paid for the house just not the land so paying inheritance tax on the value of the house as well will be quite hard to swallow.

Any advise or guidance on what would be the simplest / most tax efficient way forward would be much appreciated.


Many thanks

Death and taxes.

Yes, the council will appraise the house at whatever value they feel is appropriate, and tax you on that value. Inheritance tax I believe is higher, so inheriting it may not be the best way.

I believe there are some ways to avoid inheritance tax if you don't sell it after inheritance.

Get an Gestor/accountant's advice.

If she gives it to then it will be subject to gift tax which is payable within 6 months and the tax rates are the same as Inheritance Tax.

Selling for a nominal sum doesn't help as the tax people will put their own valuation on it and tax accordingly.

However the land itself may have quite a low value so the tax could be low or even zero depending on the specific allowances, if any, in the region.

Ahhh so the actual house is not valued just the land ? its only a small plot so I may be worrying about nothing if this is the case

At the moment the house does not legally exist so that shouldn't be a problem and I assume you paid the costs of building it.

I would talk to a local gestor about it.

You need to get this sorted ASAP, as, if anything should happen to your grandmother, and I hope it doesn't, then Spanish inheritance law will take over and you may find the land divided into ownership by all her surviving relatives.

That depends if she is Spanish or not.

If she is British then if she has a Spanish will then Spanish succession law will not apply.

Can you clarify this last statement please Fred.

So, I am British, I have a Spanish will - are you saying that Spanish succession tax does NOT apply to me? Why?

I didn't mention tax just the succession law which, if Spanish, dictates who you can leave your assets to.

Ah, missed that subtlety!

So, as I was born in England, I can decide who to leave my estate to even though I only have a Spanish will?

Probably a good time to mention the new EU law of wills which Spain has signed up to.

The new European Regulation No. 650/2012, which is now in force, relates to the contesting and challenging of Spanish Wills granted by British citizens resident in Spain.

You can now legally opt how to make your will and not be governed by Spanish succession laws. For more talk to your local solicitor - exisiting wills needed to be updated to allow for this provision.

Yes - my Spanish will already stipulates that I wish my estate to be dealt with according to the testamentary laws of my own country so I assume it will not need to be changed to reflect the new directive referred to in this thread. I do have an English will as well, though.

It will depend on the exact wording. Worth getting it checked out.

May I ask a question;

My husband and I made a Spanish will about 13 years ago and it stated that our property belonged to both of us, so if anything happened to either we would be okay. If we both departed, the property was to be given to a UK charity. We have since sold that villa and recently purchased another one.

Do we need to update it? I hope that makes sense!

I would say 'yes' to be on the safe side and you can incorporate your new rights under the revised law.