Selling a Spanish Property

onthemend

Hello

We are looking to sell a Spanish Property (value 290K euro) that was owned by my wife's mother and her recently deceased husband.

We had to repatriate them both in January of this year quickly as her husband was diagnosed with terminal cancer. They had lived over there for 18 years, both had made Spanish Wills (mirrored) leaving their assets to each other.

We have engaged a spanish solicitor to deal with our mother's affairs in spain. We believe that in Spain, a property is owned 50-50, so our mother has to legally inherit her husbands 50% so that she owns 100%, then the property can be sold.

Our solicitor has come back to us advising that she will incur inheritance tax on the transfer of the 50% asset. Is this correct?

We understand that on the sale and completion of the property there are numerous taxes to be paid, but did not appreciate there would be inheritance tax to pay on transfer of the share of the property.

look forward to any advice

thanks

davidmcn

You'd be better to find a forum dealing with Spanish property or finances, it's UK property we mostly talk about here. Is there a reason you're doubting the professional advice you've received? Inheritance taxes do work quite differently in different jurisdictions.

martindow

According to this it can, not surprisingly, complicated.


https://www.expatica.com/new/es/finance/taxes/estate-taxes-102092/


Normally in Spain it seems that tax is payable on all inheritances. One crucial aspect is whether there is a Spanish will and how it is worded. While we are in the EU a Spanish will can stipulate that it will be subject to UK law ie with no tax payable on a spouse's inheritance.


Like David, I wonder why you are doubting advice from an expert.

Thrugelmir

onthemend wrote: »

Our solicitor has come back to us advising that she will incur inheritance tax on the transfer of the 50% asset. Is this correct?

Unlikely to be incorrect. Assume that the overall tax liability is sizable on the estate.