non resident civil partners Inheritance Tax on death of partner

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28 Feb 2012 12:00 AM by Si`s partner Star rating in WEYBRIDGE , Surrey U.... 60 posts Send private message

Have ploughed through hundreds of blogs about this but all assume married couples resident and with children!

What is the position should one of us pop our clogs ?

Assume  that a  property bought for 187000 euros , not rented out , jointly owned , will one of us be crucified to pay for the death of the other half?

We would be non resident for the next 10 years at least , we hope to retire there eventually though !

No kids , just us, what would be the Tax implications , would surviving partner be in for a large amount of tax to pay?



_______________________
Vee



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29 Feb 2012 11:20 AM by johnzx Star rating in Spain. 5242 posts Send private message

Hi this is a difficult area.
 
Until recently for sure non residents got the wrong end of a very short stick. However Poppyseed who posts here regularly posted some info the other day which she believes means that all EU residents now get treated equally (the same).
 
She is a good source of reliable info but on this particular one I am holding my breath.
 
I hope other erudite people will contribute something which will convince me one way of the other.





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29 Feb 2012 11:52 AM by gcarton Star rating. 144 posts Send private message

Last time on checking (2 years ago):

1) Depends on region re rates etc.

2) Civil partnership is not recognized per se and partners are treated as "friendly strangers"

3) Advised to have a marriage in Spain. However, as Spain is currently questioning validity of same sex marriage, this option may disappear.

Guy


 



This message was last edited by gcarton on 29/02/2012.



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29 Feb 2012 1:02 PM by Poppyseed Star rating. 897 posts Send private message

I would seek expert legal advice on this issue and not rely on any amateur opinions. Civil partnerships were not recognised but a couple did appeal this and won their case http://www.pinknews.co.uk/2007/12/13/spain-recognises-uk-civil-partnerships/ . Spain has been told to bring it's IHT rates into line for residents and non residents http://www.eyeonspain.com/spain-magazine/future-inheritance-tax-law.aspx and at least one company are offering to apply for refunds when the higher non resident tax has been paid. But I think you will get many different answers to this question on a forum and as it is such a complicated and specialised area I would take them all with a pinch of salt. Perhaps Maria could help and if she doesn't know maybe she knows someone who does.


 



This message was last edited by Poppyseed on 29/02/2012.

_______________________

Poppyseed




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01 Mar 2012 10:43 AM by mariadecastro Star rating in Algeciras (Cadiz). 9419 posts Send private message

mariadecastro´s avatar

 Dear Si´s partner:

Yes, you will have to pay Inheritance taxes on the half of the property being inherited. Anyhow if it is your civil partner ( you need to be registered at the census) and the house is your habitual dwelling, the tax will be almost unexistent.

Kindest,

Maria



_______________________

Maria L. de Castro, JD, MA

Lawyer

Director www.costaluzlawyers.es

El blog de Maria



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01 Mar 2012 2:40 PM by Poppyseed Star rating. 897 posts Send private message

Si's partner, As your question was regarding non-residents civil partner IHT, perhaps posting the question on this website may help find a definitive answer

http://www.cardenas-grancanaria.info/taxes-laws/inheritance-tax-for-non-residents.htm



_______________________

Poppyseed




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26 Sep 2012 9:02 PM by EDNA Star rating. 23 posts Send private message

WE HAVE LIVED TOGETHER FOR NEARLY 20 YEARS, BUT FOR VARIOUS REASONS HAVE NOT MARRIED.  WHAT IS THE POSITION FOR IHT FOR US?  I HAD MY OWN COMPANY IN UK (SCOTLAND)  AND I AM OF THE OPINION THAT A UK REGISTERED LIMITED COMPANY COULD BE THE WAY FORWARD HOWEVER MY ASESORIA ADVISES ME AGAINST THIS.  CAN ANYONE OFFER A SOLUTION 





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