lizzy1955

If you are married and you have a will, and share a appartment with your husband, will my husband have to pay inheritance tax on my death anybody out there know? Thanks. This is a great worry.

Sherlock Holmes

Hi Lizzy and welcome to B.E.

Thanks for posting in the welcome inn first but this really needs to go to the Spain forum.

I've moved it for you.

A.

Sue

Hi lizzy,

Welcome to BE.

I'm afraid I don't have any experience regarding the issue you've posted about, but Alistair has moved your thread into our Spain forum for you, and hopefully one of our members who posts in there may be able to give you some pointers.

Sue

Rosemary

As Concierges for the Spanish section of BE we would like to say hello and welcome.

BE is a very large expat website, so if you have problems finding your way around we have concierges who will try to direct you. The moderators for the Spanish forums are Mitzyboy and Fred James, moderators are there to ensure that the site runs smoothly within the rules of BE. Problems and complaints should always be addressed to a moderador who will look into the matter and deal with it efficiently and fairly. Our members who post in the Spain Forums are friendly and helpful with a wealth of knowledge of the issues of living in Spain. At the top of the page you will find a quirkily named thread called Free Beer which is full of important and useful information. Hope you enjoy your time participating in the forums.

Please let us know if you need any further help.

Rosemary and Graham

snikpoh

Several factors come into the answer;

• Are you both resident?
• Is the property in both names?
• Which province do you live in?
• Does the UK tax man believe you are DOMICILED in UK?

Depending on the above answers, the answer is that you WILL have to pay Spanish Succession Tax (IHT in Spain) but you might also have to pay UK IHT.

This is a complicated area and is best answered by a Spanish tax representative (assesor or abogado perhaps).

Rosemary

There are people on the spain forum with considerable knowledge of the Spanish legalities and no doubt will be along soon, ( if they can be dragged from the pool on this lovely day). One of the first questions will be where in Spain is the property because although it is a Spanish tax it varies from area to area, living in the Valencia region as we do and not being rich reduces our tax down to a very small amount A second question will be do you have a will either English or Spanish or both? Your age and how long you have had the property will also have an effect.
Whatever you do please do not worry it will not be as bad as you might think unless you have very considerable assets here.
Look a couple of threads down at the one entitled Wills for expats in Spain there is a lot of info there.

Graham

Fred James

The short answer is that yes, you will be liable for tax on the half you inherit (unlike in the UK where there is no tax on husband/wife transfers).

As has already been asked are you tax resident in Spain and where do you live?

That info will determine how much, if any, that you will pay.

Mitzyboy

Although we have a neighbour who's husband died abt 5 years ago, and she was not liable for any IHT on her half of the house, and to this day has received no demand. It was dealt with properly though a solicitor

Fred James

Note my choice of words - everyone is liable for tax if they inherit something - it doesn't necessarily mean they pay it.

Rostra

Hi Lizzy,
I'm one of the people who has been writing about inheritance tax. I'm a Gestor in Lanzarote.

Please read the thread about Wills.

Basically I believe that yes, if your partner transfers your half into his name when you die, he definitely will have to pay inheritance tax on your half. However if he waits five years before he does this, (or sells the property) the transfer becomes tax exempt.

Your inheritance tax bill in Spain is completely independent of any other liabilities, as IHT is not covered by the Double Taxation Agreement. If you have property elsewhere, and your husband has to get a grant of probate in the UK for example, the Probate Office will want to include the Spanish property in the calculation of your inheritance tax in the UK.

If you don't have property in the UK, and your bank accounts/investments are in joint names with either of you able to sign, you won't need a Grant of Probate in the UK. All he will need to do is sort things out with anybody who is paying you a pension, and maybe refund anything that has been overpaid since the date of your death.

Gruesome subject - Hope you have a long and happy life to come.

snikpoh

What about the fact that they may be deemed to be DOMICILED in UK? This may mean that as well as succession tax here they may have to pay IHT in UK (a completely different tax so the concept of double taxation doesn't even come into the equation!).

Mitzyboy

Well .... only talking about the Valencia area, cos thats where I am, but thats actually not what happens. In the husband dies and the wife is left the house she pays no IHT. That's not my opinion ... that's actually what has happened. It was all done and dusted in 6 months and the wife had no liability.

Fred James

Unless I misread her post that is exactly what Rostra said.

Fred James

Assuming they are tax resident in Valencia (usually for 5 years) then 99% of the value of the inheritance is excluded so only 1% is taxable. The basic allowance in Valencia is €40k rather than the usual €16k so it is very unlikely that any tax would be due.

Unlike the rules in other areas there are no limitations to this and the requirement to keep the house for 10 years doesn't apply.

It's a good place to die!

Mitzyboy

I'll bear that in mind