Living abroad tips and hints for money savers

droopsnout

It sounds as if you don't believe her. Or perhaps I'm misreading it, and it's the notary you don't trust.

But surely she has the notary's bill for the work done? If so, no matter how the figure is calculated, it has to be paid!

donny-gal

When we purchased our house in Spain we were told to allow 11% for the fees, so that actually sounds low.

Is there not an immediate tax liability anyway?

DG

seven-day-weekend

http://www.marbella-lawyers.com/articles/showArticle/spain-inheritance-tax

This link may help - it's a bit old but I think the rates are still the same:

Also see below, from this site:
http://www.graydon-associates.com/faqs.htm

I own a property in Spain, how will it be valued upon my death for Inheritance Tax purposes?
The law is very specific. The value to be used is the greater of: escritura value, valor catastral or the open market value. The valor catastral, multiplied by a factor of between 2.5 and 3, is frequently used as a convenient means of assessing the value.

When does the Inheritance Tax have to be paid?
Quite simply: within six months of the death. In certain circumstances this could be extended to twelve months but interest would then be added.

What are the major differences between Death Duties in the UK and Inheritance Tax in Spain?
In the UK it is the estate of the deceased that is subject to taxation. In Spain it is the individuals who inherit that are taxed. The other major difference is that there is no inter-spousal exemption in Spain. When a property is in the joint names of a couple, on the death of one partner the surviving spouse must pay inheritance tax on the value of the half he or she inherits.



Inheritance Taxes and Capital Gains Taxes are high in Spain and you are not allowed to sell the property to pay the tax.:eek:

If she puts other people on the deeds there will be taxes to pay as it is treated as a Capital Gain .

I think 10 grand sounds reasonable (for Spain).

Good luck!

(Why do you think there are so many abandoned houses in Spain?)

mommame

Sorry everyone I just had unexpected visitors so could'nt get back to the pc.
It is actually half a house that has been split as mil's ex partner owns the other half and my hubby and his brother have already paid the taxes and have sent £1500 each to get the deeds as this was a new build and the original deeds only released recently,now the deeds have to be changed again as sister in law and mil's ex are part owners.
It isnt that we dont believe her it is just we are here in england and are trying to keep ahead of any other things that will need to be paid for .
Thanks droopsnout,sdw and donnygal I knew I could rely on you lot to help us find out about this.
Mom

droopsnout

Sounds complicated! Good luck with everything.

Mrs_pbradley936

Hi everyone,

Just to let you know that the wire transfer from the US was in our UK account this morning! I think that was quick just 4 days.

seven-day-weekend

(Sings)......'You're in the money! You're in the money!!'

Congratulations!

gfplux

well done Mrs pbradley936 on getting the money.
Now your problem is what do you do with it?

Mrs_pbradley936

gfplux wrote: »

well done Mrs pbradley936 on getting the money.
Now your problem is what do you do with it?

Yes, well I shall probably hop over to investment board in a couple of weeks for some suggestions. We left some dollars behind because we intend to be here next winter for a couple of months and put it into a "money market" investment because we will not need it until December. The US Bank said that was better than a savings account ANYTHING must be better than a savings account!

seven-day-weekend

Well....we have had some depressing news tonight...

By far the best bar in our village, and possibly in the whole of Andalucia, Bar Donaire, is closing next month!

Amador Donaire the proprietor has been trying to get 'pensionista' status (probably the same as Incapacity Benefit in the UK) for a while now because of his ulcerated legs, and he told us tonight that he 'employed a good lawyer' (he pronounced it liar , :rotfl: ) and has been awarded it. So he is closing 'when he gets the letter' next month..

Now bear in mind this is a village in the middle of nowhere, we do not have much to do in the way of entertainment. Amador is a natural charmer (his name Amador Donaire loosely translates as Lover Charm), he always has a big smile and a welcome, he makes each customer feel special. There are a few other bars but none of them are a patch on Bar Donaire for a night out.

I'm pleased for Amador and his wife Lupe who was very ill last year, but not happy for us.

This has come at a time just before our residencia runs out and needs to be renewed when we were thinking of being UK resident anyway and using this Spanish house as a holiday home say for five months a year.

Maybe we are being told something.........