We understand that inheritance tax is not the same as the UK law and we are looking for views on how people already residing in Spain are dealing with this.
A company in the UK has advised us to set up a company registered in the UK which would own our property and assets and therefore become exempt from Spanish inheritance tax.
has anyone else gone through this process.

Inheritance tax is entirely different from UK IHT.

Are you resident in Spain or not?

That changes things dramatically.

I would strongly recommend against this as it can sometimes cause more tax debt than not.

The key questions are;

1) are you resident
2) where is the property (each area has different succession tax rules)
3) are you considered domiciled in UK or Spain
4) who will the beneficiaries be and are they Spanish resident

There are lots more questions so I really think you next to speak to someone who specialises in UK IHT AND Spanish succession tax.

Hi

I received similar advice from Blevins Franks; My children own my home, and I have an usufruct.

It works for me - I intend to die a pauper (I am in NO hurry).

Davexf

Think you will find that this question has been posted fairly recently if you search

Thanks for the response. We will be moving to Sayalonga near Malaga in Andalusia, next year.
It's just my husband and I, no children and yes we look to become residents in Spain full time....this will be our retirement home.
If we both passed away then we have a UK will that places all assets with our family in the UK.

You will need a Spanish will too.

Thank you Fred. I have read your previous threads on this matter and understand that it is a very complicated area and will now consult our Spanish lawyer for advice plus a UK lawyer fro double protection.
Thanks again

Please note that leaving everything to non-Spanish residents will leave them with a LARGE tax bill in Spain PLUS an IHT bill in UK. The Spanish tax will have to be paid BEFORE any assets can be sold - this catches a lot of people out as they are unaware of the fact.