Property in UK inherited by British expat resident in Spain
Sep 26th 2018, 9:52 am
#1
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Joined: Sep 2018
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Property in UK inherited by British expat resident in Spain
Hello everyone!
I have just joined the group and hope someone can guide me a little ... and I promise I have searched the site for a case similar to mine, but without success (:-)
I have lived in Spain for 26 years, am married to a Spanish lady, have a 14 year old daughter and I am a resident working and paying taxes here.
My mother passed away in May and my brother and I have inherited her house and a little money (dad passed away some years ago). No IHT is due in UK as the value is way below the £325,000 (£650,00) threshold.
Can someone please guide me as to what paperwork I must complete to correctly declare this to the Spanish authorities, and pay any monies due? Though I imagine that there will be no Impuesto sobre Sucesiones due, as it will obviously be way below the Spanish threshold of €1,000,000 here in Andalucia.
We just want to complete the correct paperwork and have no surprises around the corner!
Thank you so much.
I have just joined the group and hope someone can guide me a little ... and I promise I have searched the site for a case similar to mine, but without success (:-)
I have lived in Spain for 26 years, am married to a Spanish lady, have a 14 year old daughter and I am a resident working and paying taxes here.
My mother passed away in May and my brother and I have inherited her house and a little money (dad passed away some years ago). No IHT is due in UK as the value is way below the £325,000 (£650,00) threshold.
Can someone please guide me as to what paperwork I must complete to correctly declare this to the Spanish authorities, and pay any monies due? Though I imagine that there will be no Impuesto sobre Sucesiones due, as it will obviously be way below the Spanish threshold of €1,000,000 here in Andalucia.
We just want to complete the correct paperwork and have no surprises around the corner!
Thank you so much.
Sep 26th 2018, 12:10 pm
#2
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Joined: Apr 2017
Posts: 878
Re: Property in UK inherited by British expat resident in Spain
Some years ago I inherited a share of a house in UK along with my sisters.As the cheque was obviously in Sterling,I opened an account in Gibraltar with a building Society there.Of course this may change after Brexit but I didn't want to use the cash myself &,having British based young relatives who will(if I don't change my mind!)inherit,I thought it wise to leave it in that currency.The strange thing I found was,apart from there is no inheritance tax paid in Gib.I am allowed by the Spanish Hacienda to leave up to 50,000euros there against my yearly tax bill in Spain.Of course you may want to use your gift but for me,since I am not allowed to own a bank account in UK,it was ideal.Silly UK Govn.policy as,instead of adding to the British economy I can be helpful to Gibraltar instead.
Sep 27th 2018, 9:15 am
#3
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Re: Property in UK inherited by British expat resident in Spain
Thank you dougal03 for your reply.
The idea of leaving the eventual proceeds of the sale of the UK house in a GBP account in Gibraltar hadn't occurred to me, but that still isn't a route I wish to take.
As I commented, my real aim is, for now, to complete all the necessary paperwork to declare the inheritance to the Spanish authorities, and later decide what to do with the money after the sale of the house.
Does anyone have experience in declaring such an inheritance of UK property?
Thanks all, once again.
The idea of leaving the eventual proceeds of the sale of the UK house in a GBP account in Gibraltar hadn't occurred to me, but that still isn't a route I wish to take.
As I commented, my real aim is, for now, to complete all the necessary paperwork to declare the inheritance to the Spanish authorities, and later decide what to do with the money after the sale of the house.
Does anyone have experience in declaring such an inheritance of UK property?
Thanks all, once again.
Sep 27th 2018, 9:33 am
#4
Joined: Jun 2006
Location: Granada Costa
Posts: 10,901
Re: Property in UK inherited by British expat resident in Spain
You might find this helpful. https://www.agenciatributaria.es/AEA...ormacion.shtml
A gestor would do it for you.
A gestor would do it for you.
Sep 27th 2018, 9:44 am
#5
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Re: Property in UK inherited by British expat resident in Spain
Thank you Fred James for your speedy reply, but from a cursory reading, those situations seem to correspond to inherited properties which are in Spain.
Sep 27th 2018, 10:26 am
#6
Joined: Jun 2006
Location: Granada Costa
Posts: 10,901
Re: Property in UK inherited by British expat resident in Spain
If you read the declaration form it covers a lot more than just property.
It all looks like a complicated process and I would certainly get a gestor involved.
Just because there is no tax due does not mean that they won't fine you if you don't submit it within 6 months.
It all looks like a complicated process and I would certainly get a gestor involved.
Just because there is no tax due does not mean that they won't fine you if you don't submit it within 6 months.
Sep 27th 2018, 10:43 am
#7
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Re: Property in UK inherited by British expat resident in Spain
Thank you once again.
Yes, but as property "in the UK" is what I am interested in, which I didn't see, please guide me to the part of the declaration which referes to UK property as the inherited item.
I imagine I will end up looking for a company experienced in this exact type of situation, as my main concern is getting the correct paperwork done now before those 6 months are up, though I can ask for an extension at around the 5 month mark.
Thanks (:-)
Yes, but as property "in the UK" is what I am interested in, which I didn't see, please guide me to the part of the declaration which referes to UK property as the inherited item.
I imagine I will end up looking for a company experienced in this exact type of situation, as my main concern is getting the correct paperwork done now before those 6 months are up, though I can ask for an extension at around the 5 month mark.
Thanks (:-)
Sep 27th 2018, 10:53 am
#8
Joined: Jun 2006
Location: Granada Costa
Posts: 10,901
Re: Property in UK inherited by British expat resident in Spain
Sorry, I can't offer any further help. As I said, go to a gestor.
Sep 27th 2018, 11:40 am
#9
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Re: Property in UK inherited by British expat resident in Spain
Many thanks. Will do (:-)
