Inheriting property abroad where there is also a right to remain

Keep_pedalling

SeekingAnswers7842 said:

@Keep_pedalling
She'll be 15 in a few months 

So just three years before she can inherit. One other thing to consider here is how this effects her when she come to buy her own place, she won’t be a first time buyer and will face additional tax on that purchase if she is still a part owner in that house. 

Markdavid1962

I own  a property and live in the UK, below are some of the points you need to look in to
Do you know if the deceased had a UK Will and if so did they also have a  Spanish will, which mention that the UK Will takes precedence ( If it did then it makes the legalities much easier)

When someone passes away in Spain, under Spanish law the inheritance tax has to be paid before the heirs inherit (thats why there are lots of abandoned houses in Spain).

Depending on the region of Spain, there are inheritance allowances you can claim etc which lowers what needs to be paid

Now for ownership of the house, normally a non resident owner has to have a Non Resident Identity number (like my wife and I), a solicitor could arrange that during the transfer of ownership. The other person living in the house are they a resident or non resident.

Every year we pay SUMA Tax as a non resident property owner (approx £300)

You can find information on a site called Talk Quesada.

If the property is in Murcia, Alicante or Valencia area I can recommend the solicitor we used, we interviewed three law firms before we chose her and she speaks english.

PM me if you need more information

Markdavid1962

Just had a quick look, hope this helps. This applies to my region in SPain.

It may be different depending on the location of the property.

Gift and inheritance taxes are now given a 99% reduction to Group 1 and 2 relatives in the Valencia Region.

See a solicitor as plus valia and ITP may have to be paid.

"A bonus of 99% (99% tax discount)after the calculation of the tax rate on amounts obtained by relatives of the deceased belonging to groups I and II (parents, children, grandchildren, grandparents and spouses).
Also this is the same for donations or gifts to spouses, parents, children or adoptees of the donor.
This is a very important change. Why? As it reduces inheritance tax to virtually nil on all assets in the Valencia Community. Before, tax (often considerable) was paid above 100,000€ in many cases.

Keep_pedalling

Markdavid1962 said:

I own  a property and live in the UK, below are some of the points you need to look in to
Do you know if the deceased had a UK Will and if so did they also have a  Spanish will, which mention that the UK Will takes precedence ( If it did then it makes the legalities much easier)

When someone passes away in Spain, under Spanish law the inheritance tax has to be paid before the heirs inherit (thats why there are lots of abandoned houses in Spain).

Depending on the region of Spain, there are inheritance allowances you can claim etc which lowers what needs to be paid

Now for ownership of the house, normally a non resident owner has to have a Non Resident Identity number (like my wife and I), a solicitor could arrange that during the transfer of ownership. The other person living in the house are they a resident or non resident.

Every year we pay SUMA Tax as a non resident property owner (approx £300)

You can find information on a site called Talk Quesada.

If the property is in Murcia, Alicante or Valencia area I can recommend the solicitor we used, we interviewed three law firms before we chose her and she speaks english.

PM me if you need more information

A 15 year old has no means to pay any taxes, so what happens if they are not paid?

It seems to me that the OPs daughter has only inherited a financial burden, and that if at all possible a solution needs to be found that keeps her off the property ownership. 

Silvertabby

Can a 15 year old actually own property (even a part share) under Spanish law?  

Keep_pedalling

Silvertabby said:

Can a 15 year old actually own property (even a part share) under Spanish law?  

Apparently they can. I suppose that as there are no such things as trusts in Spain there is no other option. The whole thing is a mess created by a poorly thought out will. 

SeekingAnswers7842

Some very interesting and useful comments, so thanks to all.

@Markdavid1962 I'm reasonably sure it's a Spanish will, but I'd need to check with the family to be certain (it's my daughter's mother's side of the family).

Also, the property is in Andalucia (Albox area), so I think inheritance tax is minimal from what I have read, fortunately.

The Spanish lawyer is applying for NIE numbers for us (after months of telling us they could, then couldn't - another issue as it's putting us in a position where we could be fined soon if we don't settle the estate asap).

Maybe I should just ask if the other owners want to buy out my daughter's share for a very discounted rate - giving my daughter something but also exiting her from this whole scenario.

SadCodeMan

Keep_pedalling said:

The whole thing is a mess created by a poorly thought out will. 

I think it may not be totally their fault about the will. It sounds like Spain is like France in that there are forced heirship rules so doing anything other than leaving a split of the property may not have been that easy.

boingy

SeekingAnswers7842 said:

Maybe I should just ask if the other owners want to buy out my daughter's share for a very discounted rate - giving my daughter something but also exiting her from this whole scenario.

That might be a very pragmatic solution. I guess it depends how amenable everyone is and how well they get on. 

Keep_pedalling

SadCodeMan said:

Keep_pedalling said:

The whole thing is a mess created by a poorly thought out will. 

I think it may not be totally their fault about the will. It sounds like Spain is like France in that there are forced heirship rules so doing anything other than leaving a split of the property may not have been that easy.

I was really thinking about the fact that the will creates a life interest in a country where trusts don’t exist.