Act Now to Save Inheritance Taxes
People are asking for clarity on the donation tax and inheritance tax rules and why they should act now!
Brexit is coming, (we think). Absolutely nobody can predict how the landscape will look in March, but what we know for sure is:
A property owner in some regions of Spain can donate their home to a family member for as little as zero tax as the tax free allowance for European citizens in Alicante is 100,000 euros for close family members. Tax free allowance in Murcia is 99%.
If you, a European citizen, wish your children to inherit your home in the Torrevieja community, and it is valued at 100,000 euros, they pay no tax. Inheritance tax however, can be almost as high as 40% in certain regions or if no allowance, depending on property value.
However, after Brexit, as soon as March 29th, if you are British, you may no longer be a European citizen, and therefore this tax benefit for you will close.
Even a delay to Brexit does not save you. Just like for all European citizens, Spain is intending to harmonise inheritance taxes in regions before this Summer and generous allowances are likely to disappear.
We advise all our clients, British or non British, who intend to donate their property in Valencia or Murcia regions to do so now.
The average cost is in the region of 4,000 – 4,500 euros conveyancing, lawyer fees, notary, land registry, etc.
To start the ball rolling, contact Spanish Solutions today. Drop in or scan us a copy of the property deeds, and a suma bill so we can give you an exact cost. Contact firstname.lastname@example.org