Did you know your hard earned legacy may have to be sold off to pay crippling tax bills when you pass away?
Spanish Inheritance tax, death duties in the UK , legal fees - Can be at least 40 to 50% . Can you be absolutely sure that those you leave behind will have the money to cover these costs?
Would you prefer your children and grandchildren to enjoy the property you worked so hard to own?
Or will they be forced to sell your property to cover the tax demands?
It's a sobering thought, isn't it?
Also, did you know that in the UK system of IHT, a husband or wife is usually an exempt beneficiary, but in the Spanish system...
Your husband or wife will not be exempt
from Spanish Inheritance Tax.
So, while it's not something we like to dwell on, can I ask you;
"Have you considered what will happen to your dream of leaving something of value to your children when you depart this world"?
The harsh reality is that your gift could become a financial burden that your loved ones simply can't pay off.
How much debt? - When you take into account Spanish death duties, inheritance tax, legal and agency fees, accounting fees in both Spain and the UK, and other 'incidentals'....possibly 40%, but maybe as much as 50% of the value of your property!
But it could be a lot more:
For example IHT in Spain differs from the UK. After an allowance (typically 15,957€) the balance is taxed at rates from 7.65% up to an incredible 34%.
It gets worse, when the inheritor is not a close relative of the deceased the tax can increase by 140%, that means a possible top rate of 81.6%!
What is the difference between Death Duties in the UK and IHT in Spain?
In the United Kingdom, it is the estate of the deceased that is subject to taxation.
In Spain however, it is the individuals who inherit that are taxed.
The other major difference is that there is no marriage exemption in Spain for non domiciled people.
When a property is in the joint names of a couple and on the death of one partner, the surviving spouse must pay inheritance tax on the value of the half he or she inherits. In the meantime the property and bank accounts are frozen by the Spanish government until all the taxes are paid.
This means that if you don't plan ahead, and start now, the cold fact is that a huge chunk of your wife or children's inheritance will go in taxes.
With that in mind, may I ask a final, pointed question?
"So now you know what happens if you don't plan, are you happy right now with what you have done about it"?
I'm sorry if that question seems blunt, but we need to be realistic and take direct action to stop our hard earned money from being grabbed by the tax man.
But what action can you take today, to protect the property you worked so hard to own, in the future?
The good news is that you CAN take a positive step, and do it right now!
Up until now, there have been very few legal strategies to side step Spanish Inheritance taxes.
Now there is a simple way to structure the ownership of your property and keep your money out of the tax mans pocket...
This is how it works;