Inheritance Tax Spain
You may be aware of this already, but it's something many people who own property in Spain don't know. Inheritance tax Spain
It's about the taxes payable when an owner of property in Spain passes away.
If you have ever wondered about the details of inheritance tax, it's simply this:
Your hard earned legacy may have to be sold off to pay crippling tax bills when you pass away?
Spanish Inheritance tax, death duties , legal fees - up to 40% .
So, right now, can you be absolutely sure that those you leave behind will have the money to cover those costs? Inheritance tax Spain
Of course we would all prefer our children and grandchildren to enjoy the property we've worked so hard to own, and not be forced to sell it to cover onerous tax demands. Inheritance tax Spain
Equally as worrying, did you know that in the UK system of IHT, a husband or wife is usually an exempt beneficiary?
But in the Spanish system... Inheritance tax Spain
Your husband or wife will not be exempt from Spanish Inheritance Tax.
It's a sobering thought, isn't it? Inheritance tax Spain
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. Inheritance tax Spain
How much debt? - When you take into account Spanish death duties, inheritance tax, legal, agency fees and accounting fees in both Spain and the UK , and other 'incidentals'....certainly 40%, but maybe as much as 50% of the value of your property! Inheritance tax Spain
"Most estates will be hit with as much as a 40% tax charge unless steps are taken..."
Joe Howard - Senior Partner of Howard Mathews LLoyd Accountants UK
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. 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? Inheritance tax Spain
"You know what happens if you don't plan, so 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? Inheritance tax Spain
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 organise your property and keep the money out of the tax man's pocket.
This is how it works; ...
Introducing: The Wincham Investments Inheritance Tax Protection Strategy
To protect your property and ensure your loved ones will inherit it without incurring Spanish IHT we have teamed up with Wincham Investments Ltd a United Kingdom company established in 1994 to help people just like you minimize their tax liabilities.
- You can shield your children from those crippling debts through a simple, legal tax shelter that means it remains in the family, free of burdens like Inheritance taxes, death duties and legal fees in Spain.
- You can build a solid wall of defense so that when the time comes, a simple declaration moves the ownership from you, to your loved ones.
- No taxes or lengthy Spanish Will probate, no Spanish and UK legal fees... no being forced to sell.
- You will maintain full control at all times. You can rent it, sell it, raise funds on it, just the same as you can right now.
- You have the control to divide the property between beneficiaries in a much simpler format than normal Spanish Wills allow.
- You can change the ownership percentages, without additional legal costs.
Your new structure is guaranteed safe and effective in transforming a potential tax bill of 40%- 50% of your asset value, to just a few percent now, and a little in the future.
"...there will be...NO liabilities. NO fees, NO legal costs"
Maria L. de Castro - Legal Advisor Spain
Exactly how is this Spanish Inheritance tax protection created?
By forming a UK Company: The owners of the property form a UK Limited Liability company, in which ownership passes into the hands of the company. Each owner becomes a Director of the company.
As the legal company owner, you remain in full control of the company - and therefore the asset. Inheritance tax Spain
You do not relinquish any control or decision making power regarding the property.
You stay in absolute control of the shares of that company, and you have the final say in who owns those shares.
Therefore - Inheritance tax never becomes an issue. Because on your passing, the company still remains the owner of the asset, it's just the shares in the company that will change hands when the time comes.
It's simple, isn't it?
And it's totally legal too!
"With current legislation and tax laws there is an opportunity for
considerable taxation savings by purchasing new overseas property
under the umbrella of a UK limited company"
Joe Howard; Senior Partner - Howard Mathews LLoyd, UK Accountants
If you own property in Spain of any value, you should seriously consider restructuring your asset to protect it in the future.
Although our example (on the UK legal opinion page) shows the savings on a 300,000€ property, savings on agents fees, legal fees and taxes means this structure is the perfect tax planning strategy for all property owners.
Interested? Here's what to do now.
You need more information and to be sure that this is a safe and legal way to protect what you have worked so hard to achieve, I understand that.
The first thing to do is request a free proposal, personalised to reflect your tax liabilities right now, and the benefits of restructuring under the Wincham plan. A case Manager at Wincham will work out the figures for you with no obligation. If you decide to move forward and plan your inheritance using this simple system, they will tell you the way it will happen, what you need to do, how to divide the shares up, & what it will cost.
To register for this simple, intelligent tax service right now, click here.
To get your free personal proposal, and browse around the Wincham Consultants website all you need to do is click here , fill in the form and we'll send it to you immediately by post, fax or email, whichever you prefer.
But make a decision to act today . Time is precious, another year is flying by, and none of us truly knows what tomorrow will bring.
More articles related to living in Spain from our guest writers:
Laws for owners of properties
Dividing walls between properties
Disputes with neighbours?
In relations between property owners there are basically three main problems.
Water and Electricity connections
Organize your finances
InheritanceTax in Spain
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