Spanish Wills in Denia Expert Inheritance
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PROPERTY in Marina Alta. Basic recomendations CHECK LIST. Before sign any document find an INDEPENDENT lawyer. 1. Check who the owner is. If it is not the owner the person who signs must have a power of attorney. 2. It is very important to check if the property is free of charges, mortgage, or tenants via Land Registry. 3. Community fees. Letter of the administrator. 4. Price and payment: a certain amount that the buyer gives to the seller as a signal. 5. Selling fees: There are fees related to the purchase negotiation. Who pays?... Municipal Taxes. Seller Notary fees. negotatiable Registration fees. negotatiable 6. Check if the property has any penalties at the town hall 7. Check the urban situation of the property via Catastro and townhall. If in the future there are any urban projects in the area. Cadastral data: Descriptive and graphic cadastral certification that will be incorporated into the deeds to verify the coincidence or discrepancies between the cadastral data, the Pro
ReplyDeleteIt is very advisable for non residents to make a will in Spain for several reasons.
If you have a Spanish will you do not have to wait for the payment of the inheritance in your home country. Otherwise, you will have to wait until this is done and then you will need to provide a translation of the probate proceeding and apostle-stamp the document (a stamp in according to a Hague convention on certification of signatures by official bodies). Only then can papers be brought to Spain to make the necessary changes in title deeds and bank accounts. As all this process can take long, you might incur in penalties as in Spain you have to pay your inheritance tax within six months.
There is a rumour among foreigners in Spain that the Spanish tax administration will take over your property in Spain when you die, or that inheritance taxes are very high. This is not correct. In a normal inheritance, taxes are moderate.
Where property, and generally, the estate of a person is transferred by inheritance, the Tax authorities charge a percentage on the tax base according to a sliding scale where different considerations are taken into account. The same scale is applicable to donations, which is important insofar as this tax could be applied to a purchase/sale contract where the Tax Authority deems that the parties have under-declared the price of the property on a Public deed of conveyance or, in some cases, private purchase contract.
But one needs to plan the inheritance from a fiscal point of view, analysing the possible reductions that can be applied by law to this tax. For instance, if both testator and heir are residents in Spain, and the inheritance is a permanent dwelling, the taxable amount can be reduced 99%.t However, for the heir to keep the reduction, he must continue as resident and without selling the property for 10 years. There are also other reductions, depending on relationship between deceased and heir.
If you decide to sell your inherited property, you must take into account that you will have to pay income tax on the amount resulting from the difference between the selling price and the amount appearing in the title deeds, in other words, you will have to pay income tax on the benefit obtained through the sale. Although the individual circumstances of each case have to be taken into account, in some cases it could be advantageous, to declare an amount close to the market value and not lower.
Finally, as the inheritance tax is a regional tax collected, governed and inspected by the Autonomous Communities and the central tax office (non residents) you must ensure that you pay the inheritance tax to the relevant and competent institution
SELF-ASSESSMENT FORM. Non resdents.
ReplyDeleteAs a general rule, the form to be used is Form 652 “Inheritance Tax. Simplified Return”, which can be obtained from the Tax Agency Branch in Madrid, Sale of Forms section (Venta de Impresos) at C /. Guzmán el Bueno, 139.
WHERE TO PAY.
When tax is payable, the self-assessment deposit document should be taken only to one of the financial institutions that accept tax payments (Banks, Building Societies and Credit Co-operatives), where you can pay in cash or by debiting your account.
The tax identification labels provided by the Tax Agency must be attached to the self-assessment form.
If a taxpayer who is required to make payment does not have a Tax Identification Number (NIF), they must take the following steps before requesting the labels.
REQUEST FOR THE ADMINISTRATION TO CALCULATE THE TAX PAYABLE.
If the taxpayer does not choose the option of self-assessment, they may opt, in 6 MONTHS, to request that the Administration calculates the tax for them.
In this case, they should send the form requesting that the tax be calculated, accompanied by the documentation detailed to the following address: Delegación Especial de Madrid de la Agencia Estatal de Administración Tributaria. Oficina Nacional de Gestión Tributaria. Sucesiones no Residentes. C/ Guzmán el Bueno, 139. 28071 Madrid.