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Spanish Inheritance Law

Posted: Wed Jan 20, 2021 11:49am
4 replies194 views5 members subscribed
Jimh

Jimh

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Hi,

We currently own two small apartments in the South of France which we are in the process of selling but Covid has  scuppered that at the moment, we also own a fairly large house in Ireland that we plan to sell. The main reason we are selling up in France is because of their Napoleonic inheritance laws where if one of us were to die, the properties would be inherited by your surviving spouse and all of your children and the French Government would tax them at a high rate resulting in the properties having to be sold to pay the taxes, in addition to that the cost of living is high in France.

We plan to downsize in Ireland, rent in Spain until we find an area/property we like and then purchase. I appreciate the views that we should not buy in Spain as we are now in our early 60's but my wife is adamant that we will buy so I don't want to open that discussion again.

Are there inheritance taxes to pay if you are non-resident and can the house be inherited solely by your partner?

I have no intention to seek residency in the future and hopefully we will both be Irish Passport holders and my wife already is

psy1967

Posted: Wed Jan 20, 2021 3:01pm

psy1967

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Posted: Wed Jan 20, 2021 3:01pm

Jim - you outline a fairly complex international tax scenario.  My advice would be not to rely on any advice you receive on this forum or any other.  Find yourself a professional international tax and/or wealth adviser, and listen to them instead.  The capital sums and potential tax liability of your situation will make their fees worthwhile.  It sounds as though "home" is, or is likely to be, Ireland, so an Ireland-based adviser with international knowledge may be your start point.

Alicia 11

Posted: Thu Jan 21, 2021 4:07pm

Alicia 11

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Posted: Thu Jan 21, 2021 4:07pm

Spain is the same as France with regard to not being able to leave your property to your spouse excluding any children.  that's why there are so many empty properties as multiple owners makes for problems when they don't agree about selling.

beauly

Posted: Fri Jan 22, 2021 10:59am

beauly

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Posts: 208

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Posted: Fri Jan 22, 2021 10:59am

Alicia 11 wrote on Thu Jan 21, 2021 4:07pm:

Spain is the same as France with regard to not being able to leave your property to your spouse excluding any children.  that's why there are so many empty properties as multiple owners makes for problems when they don't agree about selling.

Consulting a tax lawyer/solicitor for both your tax and a will is definitely a must, as from the answers already.  In Spain, whilst making your will, you can stipulate that your executry is managed according to eg the laws of Scotland, England, Wales or Ireland wherever is your place of birth.  This has been in force for a few years in Spain.  Cannot remember the exact Spanish clause.  We recently changed our Spanish wills as they were made in 2001 under the laws similar to France.  Our new wills were €120 each, including any taxes. This is quite a common cost in this area.  Hopefully this helps.  Please remember, consult the experts, not a forum !!!!

Just noticed your area is Arboleos.  Amanda Oakley from AOL Services did ours,  she is in Zurgena.  Amanda is truly excellent !!!!

Jimh

Posted: Fri Jan 22, 2021 11:13am

Jimh

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Posts: 454

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Location: Huércal-Overa

Joined: 11 Oct 2019

Posted: Fri Jan 22, 2021 11:13am

beauly wrote on Fri Jan 22, 2021 10:59am:

Consulting a tax lawyer/solicitor for both your tax and a will is definitely a must, as from the answers already.  In Spain, whilst making your will, you can stipulate that your executry is managed according to eg the laws of Scotland, England, Wales or Ireland wherever is your place of birt...

...h.  This has been in force for a few years in Spain.  Cannot remember the exact Spanish clause.  We recently changed our Spanish wills as they were made in 2001 under the laws similar to France.  Our new wills were €120 each, including any taxes. This is quite a common cost in this area.  Hopefully this helps.  Please remember, consult the experts, not a forum !!!!

Just noticed your area is Arboleos.  Amanda Oakley from AOL Services did ours,  she is in Zurgena.  Amanda is truly excellent !!!!

Hi,

I just added 'Arboleas' as an area to join the group as I do not presently own a property in Spain. I had heard that it was possible to set out in your Will that you wanted your Foreign property to be part of your estate in your Country of residence and not be dealt with under Spanish law (this is not possible in France). I was hoping that there may be responses from members that had practical experience of setting this up or had unfortunately had need to use this in their partners Will.

We both intend to remain residents of Ireland and we both hope to have Irish passports (my wife has hers and mine is being processed) but we were both born in England so I am assuming it can be managed according to the laws of the Republic of Ireland rather than England.

So I would be grateful if anyone has practical experience of setting up their Will accordingly

Thanks

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