Is Spanish inheritance tax due on UK assets?

Information and questions about the Law in Spain and Andalucia.
Shanebea
Tourist
Posts: 12
Joined: Tue Aug 13, 2013 5:49 pm

Is Spanish inheritance tax due on UK assets?

Postby Shanebea » Sun Jun 12, 2016 9:20 am

I've been searching for clear info on this. I understand that UK inheritance tax is due on inherited assets over £325,000 or thereabouts. I'm a Spanish resident with elderly parents and will inherit less than this in the next few years.
Do I need to pay Spanish inheritance tax on the inheritance and if so can anyone point me to a link so clear information on the rules?
Grateful for any advice, thank you.

El Cid
Andalucia Guru
Posts: 13384
Joined: Sun Oct 24, 2004 10:42 pm
Location: La Herradura, Costa Tropical, Granada

Re: Is Spanish inheritance tax due on UK assets?

Postby El Cid » Sun Jun 12, 2016 9:53 am

If you are a Spanish tax resident, you are liable for IHT in Spain on any inheritance, wherever it is located.

Sid

ashtondav
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Location: Northampton Frigiliana

Re: Is Spanish inheritance tax due on UK assets?

Postby ashtondav » Mon Jun 13, 2016 10:24 am

Ditch spanish residency now by making a move out of the country for 181 days each year, and only return after your inheritance has been secured.

I would take specialist advice on this as a Spanish IHT Bill is likely to be large, if inheriting from non Spanish residents and it will all hinge on the trade offs between any tax advantages of being a Spanish resident and the inheritance.

Also remember that people can live much longer than "a few years".

Shanebea
Tourist
Posts: 12
Joined: Tue Aug 13, 2013 5:49 pm

Re: Is Spanish inheritance tax due on UK assets?

Postby Shanebea » Wed Jun 15, 2016 3:10 pm

Thanks for the advice. Does anyone know if it is correct that I can only regain UK residency by living 181 days in the UK?

El Cid
Andalucia Guru
Posts: 13384
Joined: Sun Oct 24, 2004 10:42 pm
Location: La Herradura, Costa Tropical, Granada

Re: Is Spanish inheritance tax due on UK assets?

Postby El Cid » Wed Jun 15, 2016 4:33 pm

Gaining UK tax residence is not the issue, getting non resident status in Spain is more important as that is the only way you will avoid Spanish IHT.

You can become UK tax resident after 90 days or less. The rules are quite complicated.

Sid


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