As Spanish Tax Consultants we provide an alternative method of ownership of your Spanish property to help protect against Spanish Inheritance Tax. Whilst discussing our methods with interested clients we hear of many crazy suggestions from advisors in
One of the most common suggestions we hear about is that clients are advised to do nothing following a death for 4 years and hope that the Taxman in does not find out there has been a death of an owner of the property. The reason for this suggestion is that the Statute of Limitations in Spain is 4 years and this means that by ignoring the Tax for 4 years it may be possible to escape paying the Tax 4 years and six months following the death, as you are given a further 6 months to deal with the Probate.
Whilst this is possible and we have seen Probate cases where the Taxes have been evaded in
The beneficiary has a legal requirement to probate in
I am currently working on a case where a client has just paid in excess of €19,000 in fines and interest in addition to the cost of Probate and Taxes in
Every year the registered owner of the property has to submit annual Tax Declarations to the Spanish Government, this is very difficult for a deceased person to do and we are aware that the Tax office is looking closely at properties and levying hefty fines where annual tax submissions have not been submitted.
The utility and Council Tax bills will have to remain in the deceased’s name and it is illegal to continue to use a deceased person’s bank account. The intended beneficiaries cannot sell the property whilst it is in the deceased’s name nor raise finance on it to pay any Taxes or Probate costs. What would happen should one of the beneficiaries pass away before the 4 years has expired? This event would result in one probate having to be dealt with before the second deceased’s beneficiaries could inherit.
On death the Spanish bank account of the deceased may be frozen until the Taxes are paid so how would the beneficiaries get legal access to this money? Even if the money was withdrawn illegally after death, the Tax Authorities may request a copy of the bank statements in
Whilst the Statue of Limitations on Taxation in
Our solution to the Spanish Inheritance Tax problem in
There may be no Capital Gains tax implication in
This method may eradicate all Property Taxes (excluding I.B.I.) in
Offshore companies are charged an annual Tax by
This results in a very simple and cost effective way of dealing with the transfer of the property, within the UK Company, to the intended beneficiaries and does not involve any of the Spanish authorities in the transaction.
Wincham is an International organisation that has been established since 1994 helping clients purchase and own property in
We have offices in both the
Wincham is able to offer an efficient and cost effective solution to clients who wish to ensure that their family will be able to enjoy the benefit of a Spanish property in the future.
This information has been provided by Mark Roach, Company Director and Spanish Tax Consultant.