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The REAL truth about inheritance tax in Spain

The REAL truth about inheritance tax in Spain

Old Apr 19th 2011, 11:56 pm
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Default The REAL truth about inheritance tax in Spain

Hi, I am new to this forum. I want to talk about and find out the truth about paying, (or not paying) inheritance tax in Spain.

I and my wife jointly own outright (no mortgage) a townhouse in a mountain village in Andalucia. We have spanish wills. If one of us dies, what happens?

Some lawyers say "Do nothing. Do not say anything to anyone, and after 5 years you will not have to pay anything". Does this mean it would be against the law to say nothing? Are these lawyers advising me to break the law?

Other lawyers say that The authorities must be informed, as, if they should somehow find out about a death, severe fines, (triple what would be due) will be instigated.

Does anyone on this forum know what the law really requires.

Thank you
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Old Apr 20th 2011, 1:06 am
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Default Re: The REAL truth about inheritance tax in Spain

You must declare the death.

The usual rule about not having to pay tax if it is not demanded within 4 years does not apply if fraud is involved.

Deliberately not declaring a death to avoid IHT is fraud.
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Old Apr 20th 2011, 6:31 am
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Default Re: The REAL truth about inheritance tax in Spain

[QUOTE=Fred James;9316326]You must declare the death.

The usual rule about not having to pay tax if it is not demanded within 4 years does not apply if fraud is involved.

Would there be inheritance tax given that it is husband and wife?
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Old Apr 20th 2011, 7:36 am
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Default Re: The REAL truth about inheritance tax in Spain

You really need to talk to a Spanish Lawyer about this. I think in some areas, IHT between Husband and wife has been abolished, but if it is due, remember that a) it would only be due on half of the value, and b) - this was true in the UK, but not here, when we were looking at IHT when my mother died, she owned 1/3 of the property, but we had to be assessed on less that that because it was deemed that her third, if sold on the open market would be worth much less, as the property had us as already owning the first two thirds.

So it might be a lot less than you think.
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Old Apr 20th 2011, 9:37 am
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Default Re: The REAL truth about inheritance tax in Spain

Originally Posted by bobd22

Would there be inheritance tax given that it is husband and wife?
Unlike the UK there are no special concessions between spouses.

There are basic national rules on IHT but many of the autonomous regions have their own rules which offer special deals - usually only to residents.

It is a very complicated subject and the rules are changing all the time so professional advice in the region that you live is essential.
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Old Apr 25th 2011, 6:51 pm
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Default Re: The REAL truth about inheritance tax in Spain

Thanks to you folks for your comments. To tell you the truth, my wife did die and for one reason or another, I was not able to organise, (mostly because of very conflicting advice from various spanish lawyers), any legal steps to pay IHT. Almost a year has passed and I have now paid the IHT with the help of an English lawyer, including a fine for late declaration. I was surprised though to be told by my lawyer that I now have to pay a local Capital Gains Tax ! About 1900 euros. Is it never ending? Your comments.........

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Old Apr 25th 2011, 7:11 pm
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Default Re: The REAL truth about inheritance tax in Spain

This is not England, some things in Spain are more expensive and others are not. Tax laws vary in each country. If you think tax is high in spain try moving to Norway.

Sorry to hear about your wife
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Old Apr 25th 2011, 8:36 pm
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Default Re: The REAL truth about inheritance tax in Spain

You lied in your first post and you are attempting to deceive the govt to avoid paying tax.
Maybe honesty would be the best policy
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Old Apr 26th 2011, 9:41 pm
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Default Re: The REAL truth about inheritance tax in Spain

Originally Posted by twistedmelon
You lied in your first post and you are attempting to deceive the govt to avoid paying tax.
Maybe honesty would be the best policy
He states he has paid the taxes, and now has to pay CGT
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Old Apr 26th 2011, 9:58 pm
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Default Re: The REAL truth about inheritance tax in Spain

Originally Posted by Mitzyboy
He states he has paid the taxes, and now has to pay CGT
.......and your point is?
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Old Apr 26th 2011, 10:02 pm
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Default Re: The REAL truth about inheritance tax in Spain

Originally Posted by twistedmelon
.......and your point is?
Fairly obvious I thought
He is not attempting to defraud, he says he has already paid it

I can probably understand someone not wishing to immediately share with strangers that his wife has passed on
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Old Apr 27th 2011, 12:34 am
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Default Re: The REAL truth about inheritance tax in Spain

Originally Posted by Mitzyboy
Fairly obvious I thought
He is not attempting to defraud, he says he has already paid it

I can probably understand someone not wishing to immediately share with strangers that his wife has passed on
Well you have your view and I have mine, being a moderator does not make yours any more valid than mine
It's not that big an issue worth a debate on.

Last edited by twistedmelon; Apr 27th 2011 at 12:37 am.
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Old Apr 27th 2011, 3:05 am
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Default Re: The REAL truth about inheritance tax in Spain

Originally Posted by twistedmelon
Well you have your view and I have mine, being a moderator does not make yours any more valid than mine
It's not that big an issue worth a debate on.
I didnt say it did.
You are the one making a thing about it!
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Old Apr 27th 2011, 3:13 am
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Default Re: The REAL truth about inheritance tax in Spain

Originally Posted by Mitzyboy
I didnt say it did.
You are the one making a thing about it!
I'm not making "a thing" about anything, I didn't get the point you were trying to make and still don't, so there you go
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Old Apr 27th 2011, 4:44 am
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Default Re: The REAL truth about inheritance tax in Spain

Crikey, I think I better leave this forum.
Methinks the "touchiness" of the members may be too much for me.
Bye bye. I will seek advice elswhere.
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