29 Nov 2006 12:00 AM:

Inheritance  Tax. I have trying to find best way to address spanish inheritance tax as a non resident owner.

So far I have discovered that if house is in joint names with spouse,a surviving spouse will pay IHT on the 50% value of house he or she inherits,less an allowance of about 16000euros.If children exist they will pay IHT on the whole property value when second spouse expires!!

I have read that one way of addressing this is to make spanish will,and put future inheritors on deed ie children,but don't understand benefit of this. another suggestion is to 'Gift' the property to future inheritors before death but this will incur a capital gain tax.

This is a tax on inheritors unlike English IHT which is on 'the estate' and  my understanding is that in Spain inheritors cannot sell the inheritance to pay the tax bill. but have to find the means to pay.Any body have more information to help?

Thread: Spanish Inheritance Tax

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