Case Study – Transferring a Spanish Property to Your Children

single.php

Posted and filed under .

Case Study – Transferring a Spanish Property to Your Children

Earlier today we had a customer asking about transferring their property to their two children now as a lifetime inheritance.

This is how we wrote to them for anyone considering the same issue in the Valencia region.

“I understand that you were speaking to Nicola earlier today about the costs involved in transferring a property in Spain from your joint names to that of your two sons as a donation, or early inheritance.

She mentioned that the property is in Orihuela Costa and is worth about 170,000€, I believe, market value.

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 this Valencia region are currently very generous at 100,000€ tax-free per adult child.

Thus in this case, although it is calculated on tax value of the property, not market value, as long as the tax value is less than 200,000€, and you have two children, then there would be no donation tax to pay, only costs. Of course, we cannot get better than no tax, which is why it is a good time to transfer a Spanish property in this area to your children if you are thinking of it.

There will still be Notary fees, Land Registry costs, Solicitor fees, a town hall tax called plusvalía which is small and a few other minor things. We can calculate these for you if you could please scan and email us a copy of your deeds and your last SUMA (IBI) bill as this shows the cadastral value (from which we can calculate the tax value). We can give you the costs for free within a couple of days.

We would also need to know if your two sons have NIE numbers and if you would all come to Spain for completion or would need to do powers of attorney at home if we send you the draft?

This would allow our solicitor to do everything without you having to fly here to be at the Notary for completion.

Timewise, once someone decides to go ahead, we need to make sure everyone has NIES, calculate the costs, the clients pay 10 days before completion and the only thing that generally delays the process is getting the powers of attorney executed, as if done in another country they need sending away for a Hague Apostille for international use, whereas if done in Spain they are in the format already for Spanish use. So it can be from a few weeks to a couple of months at the most.”

If you are in the same situation, then please contact Amanda on enquiries@spanishsolutions.net and she will be happy to arrange for the costs to be calculated for you. Taking action now could save your children a great deal of future inheritance tax.

Please contact Amanda if we can help regarding the above.

6 Comments

  • Denise

    Hi my name is Denise I have 5 adult children can I transfer my property to all of them they have no NIE numbers ,how will they go about getting a NIE number .

    • Nicola Ryan

      Good Morning Denise,

      Our Paralegal Amanda will contact you directly, via email, to discuss this matter further.

      Kind regards
      Nicola

  • Gracie Abbott

    Good afternoon,

    My farther is looking to gift me his property in Andalucia, what documents will i need to fill out in order to do this and will I need anything else.

    Thank you.

    Gracie

    • Nicola Ryan

      Good Morning Gracie,

      Amanda, our paralegal, will be in contact with you via email to discuss this matter further.

      Kind regards
      Nicola

  • Simon Ferris

    Good day. My parents jointly own a property in La Cala de Mijas. They would like to transfer the property to me, gift early inheritance etc. The market value is approximately €150,000. I do not have a NIE number. Which is the most cost effective way. They are not seeking to sell it to me.
    Kind regards
    Simon

    • Nicola Ryan

      Good Morning Simon,

      The NIE can be done as part of the donation, so no need to worry about that.

      Amanda, our paralegal, will be in contact with you via email to discuss this matter further and answer any questions you may have.

      Kind regards
      Nicola

Leave a Reply

Your email address will not be published. Required fields are marked *

*

*

*

FREE - Our complete guide to Brexit

Free Brexit guide

Looking for a solution?

Feel free to get in touch with any enquiries and one of our friendly members of staff will get back to you as soon as possible.

Form loading.