Family house swap

Information and questions about the Law in Spain and Andalucia.
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country boy
Andalucia Guru
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Joined: Mon Jun 28, 2004 9:49 pm
Location: Pizarra, Guadalhorce Valley, Malaga.

Family house swap

Postby country boy » Thu Oct 27, 2016 12:11 pm

Legally, can we just give our house to our daughter in return for her giving us hers in the UK. Alternatively, we could just "live" in each others houses whilst retaining ownership. Can anyone think of the best way to work it?

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

Re: Family house swap

Postby El Cid » Thu Oct 27, 2016 12:21 pm

You can give it to her, but it will be treated as a sale and transfer tax will apply. The normal tax rates can be as much as 10%, but there may be a special deal when transferring ownership to your children - Beachcomber will know if there is.She may also have to pay gift tax on the official valuation of the property. Unlike the UK, gift tax is payable immediately. Gift tax is levied at the same tax rates as inheritance tax, but most allowances and exemptions that apply to IHT do not apply to gifts.

There is no objection, as far as I can see, for you living in each others houses. If you both die she will be liable for inheritance tax on the Spanish house, but that has now been reduced in Andalucia to such an extent that it's likely to be zero.

Like a lot of "cunning plans" it's not as simple as it might first appear. It might be worth talking to a cunning lawyer.

Sid

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country boy
Andalucia Guru
Posts: 2634
Joined: Mon Jun 28, 2004 9:49 pm
Location: Pizarra, Guadalhorce Valley, Malaga.

Re: Family house swap

Postby country boy » Thu Oct 27, 2016 2:25 pm

Thanks Sid, as I expected, nothing is ever that simple! We will work on it though....Cheers!


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