A simple Donation (early inheritance)

We received this enquiry today (Monday 17/6). It’s an interesting enquiry and one we see daily.   So we thought the information may be interesting for:

Expats looking to save their heirs tens of thousands of euro in inheritance taxes after their day.( a few privacy changes have been made to the email)

Good morning Nicola,

I received your details from my cousin. He needed an English speaking legal firm on the costa Blanca when he bought his home in 2012 in Cabo Roig, and he was lucky enough to find you.

With the uncertainty over Brexit I am considering donating (gifting) my property that I own in Torrevieja (Valencia Region) to my three children.

I bought the property in 2003 for 160,000 euros and today it is valued at about the same 150/160,000. I understand the various legal, notary fees etc that would be associated with this but could you tell me if the Plusvalia tax would be applicable as well?

And also, is this the type of transaction you deal with?

Is there any hurry doing this sort of transaction?

I live in the UK as do my children.

Regards,

David

Dear David,

Thank you for approaching Spanish Solutions.

I understand that you are thinking about transferring a property in Spain from your name to that of your children as a donation, or early inheritance.

We have had a number of people approach us in the last year to deal with donating their properties to their adult children, as the tax allowances in the Murcia region are currently very generous.

There will still be:

Notary fees,

Land Registry costs,

Solicitor fees, as you say,

Plusvalía and a few other minor things.

I can calculate these for you from a copy of your deeds and your last IBI bill as this shows the cadastral value (from which we can calculate the tax value). We can give you the costs for free.

Your children would need NIE numbers and we would need to know if you would all come to Spain for completion or would need to do powers of attorney at home if we send you the drafts?

Timewise, once someone decides to go ahead, we need first to make sure everyone has NIES. The clients pay 10 days before completion. Generally the only thing that delays it is getting the powers of attorney executed as if done in another country they need sending away for a Hague Apostille for international use. However, if done in Spain they are in the format already for Spanish use. So it can be from a few weeks to a just over a month. We can explain everything to you. Remember consultation is totally free.

Please do contact me if you have any queries regarding the above. We would need to move fast as our solicitor advised me on Friday that:

the new Spanish government is the one that wishes to eliminate tax allowances in the next few months.

So please send me your deeds and IBI and I can let you know the costs and difference if the tax allowances disappear.

With kind regards,

Nicola

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