Spanish Tax Savings

What happens with your assets when someone dies is a very important issue with many people.We are always being asked about Capital Gains Tax, Wealth Tax and Inheritance Tax.

Whether you are resident here in Spain or not doesn’t alter the fact that your beautiful home here represents a pretty significant tax liability.

Capital Gains Tax is charged on the proceeds of the sale of your home here. CGT is charged on the profit you make after allowances are made for purchase, improvement and sale costs. Whilst CGT is now charged at 18% it is still a pretty sizeable chunk to lose to anyone, let alone the taxman! CGT though isn’t charged though if you are going to use all the proceeds of the sale to buy a new property but as most people sell to either go back to the UK or to downsize as they get older or to release cash to live on, or the property is sold as a consequence of the death of one or both owners there is usually a CGT bill to face at a time when the last thing people want to be bothered with is the intricacies of the Spanish tax system!

Every year you of course pay Wealth Tax (Patrimonial) on the value of your property too and everyone I am sure knows all about Succession Tax or Inheritance Tax which is charged on first and again on second death and which can amount to as much as half the value of the property!

What a lot of people don’t realise until it is too late is that their Spanish property is a part of the worldwide estate and as such may also be taxable in the UK as well if the appropriate arrangements and protection is not put in place.

Happily though there a number of things that can be done to reduce or even remove these liabilities.

Because the whole issue of taxation for the expatriate is complex and ever changing, we recognise that this whole question needs to be dealt with by specialists who have the expertise, knowledge and experience to resolve all these issues correctly here in Spain as well as in respect of any UK liabilities. We have therefore teamed up with Wealth Protection International who deal with such matters on a day by day basis and who we feel you might benefit from talking with.

If you want to have a completely free and open discussion with them about your particular situation then please let us know and we can arrange for you to meet one of their specialist staff – remember, they can help you with ALL your taxation and wealth and estate protection issues wherever in the world your assets and income streams originate.

PROTECT YOUR WEALTH FOR YOU AND YOUR CHILDREN, CONTACT US TODAY.