We had an enquiry from a walk in client this week regarding passing 50% of his Spanish property to his son now as then he thought it would make it automatic that his son inherits when he dies.
This was our email to him today as this was not quite right,given that Spanish and UK law are different.
Dear X,
It was nice to see you briefly yesterday.
These are the costs to pass on your property in Spain as a gift or donation to your son now.
I need to explain that even if he became a 50% owner with you, it does not mean it then goes to him automatically in Spain as it does in England as there when if a joint owner dies the property immediately vests in the surviving joint tenant, and a will is not required to do this.
In Spain when a property is bought or owned by two parties, each of them will have 50% ownership title. If any of them dies, his/her 50% will belong to his/her heirs following an inheritance process.
It is a completely different system.
So if this is your wish, you might as well donate him the whole 100% of the property now, if that suits. as in your particular case there is no donation tax, as you cannot get better than that. A transfer of the property would be made at the Notary and it would go into his name, avoiding any further death duties.
I have included an NIE number for him and one power of attorney.
Please let me know if the costs are acceptable.
With kind regards
Although there have been recent changes to Inheritance and Donation Tax (more will follow) for many of you it remains possible to pass your property on now without inheritance or gift tax. Please contact Amanda enquiries@spanishsolutions.net to see if it applies in your case.
2 Comments
Mary
Hi my name is Mary! I own an apartment in Tenerife and am in the process of making a will. When I purchased the apartment, I was informed by the selling agent that I required to have two names on the ownership. I added my son’s name. I am a bit confused as I have two other children and will require to split the value of my property at home and Tenerife evenly between them. My son would like the apartment and my other children are agreeable to this. I have now been told that the inheritance tax is exceptionally high. I dont have the funds to pay, or ask my son to pay the inheritance tax suggested. Would I be better to sell the apartment prior to my death as a last resort.
I wouldThank you for your advice.