spanish tax

Old Jul 30th 2011, 11:42 pm
  #16  
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Default Re: spanish tax

Originally Posted by 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!
Hope Valencia has lots of room for new immigrants!
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Old Jul 31st 2011, 11:44 am
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Default Re: spanish tax

Originally Posted by 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!).
The double taxation treaty does not specifically cover IHT but you can still offset tax in one country against tax paid in the other under the provisions of Unilateral Relief.
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Old Jul 31st 2011, 12:00 pm
  #18  
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Default Re: spanish tax

Originally Posted by Rostra
Hope Valencia has lots of room for new immigrants!
I've heard people say it's the same in other provinces, although obviously I have no experience of that personally. It's always been the way here in Valencia since I came here.
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Old Jul 31st 2011, 12:26 pm
  #19  
 
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Default Re: spanish tax

It's changing all the time as regions introduce new rules.

Andalucia, Murcia, Valencia, Madrid, Castille y Leon, Balearics and Canaries to name the main ones.

Some are more generous than others and the rules can be quite complicated.

It's mainly a PP initiative so with the chance of them regaining power across the country it can only get better.
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Old Jul 31st 2011, 3:20 pm
  #20  
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Default Re: spanish tax

Originally Posted by Fred James
The double taxation treaty does not specifically cover IHT but you can still offset tax in one country against tax paid in the other under the provisions of Unilateral Relief.
Hi Fred, not sure I understand. Are you saying that if I (or my estate) ends up paying IHT in UK, then this can be offset against succession tax here?

How does that work as they are different taxes?

I really am interested if this is the case - thanks.
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Old Jul 31st 2011, 4:29 pm
  #21  
 
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Default Re: spanish tax

The taxes may have different names but Inheritance tax is Inheritance tax!

Have a look at these links

http://www.hmrc.gov.uk/manuals/ihtmanual/IHTM27185.htm
http://www.hmrc.gov.uk/manuals/ihtmanual/ihtm27187.htm
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