Thursday, 16 May 2013

Who Do You Love More? Your Family or the Taxman?

Fact: Most people make no plans to eliminate or even reduce their potential liability to Inheritance Tax in Spain. Many don't even think they need to pay Inheritance Tax. Wrong!

It is like welcoming the taxman into your family, inviting him to become a beneficiary to assets that you have taken a lifetime to accumulate.  Of course, no one intends to die, but unfortunately we cannot stop the process.

If you put off what needs to be done you run the risk of leaving your family with a truly memorable legacy - a whopping big Inheritance Tax bill.

By doing something it is possible to reduce your potential tax bill by 99%!

Did you know:
- Inheritance Tax in Spain is levied on the beneficiary, not the deceased's estate, as in the UK.
- Unlike the UK, there is no exemption between husband and wife.
- You could be liable to Spanish Inheritance Tax even if you are a non-resident for tax purposes and your property is only for holidays.
- You could be liable to pay Spanish Inheritance Tax on any worldwide assets left to you by your spouse.
- Spanish Inheritance charges can be as high as 81.6%.
- Any jointly held bank accounts in Spain could be frozen following death.
- The house in Spain cannot be sold by the beneficiaries to pay for any Inheritance Tax liability.
- A beneficiary has 6 months to settle the liability before possible surcharges, interest or even fines are incurred.

With a little planning:
- Your beneficiaries could avoid being charged Spanish Inheritance Tax
- You could retain access to your assets during your own lifetime.

If you would like to know more on this subject, contact us on 966 494 176

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