inheritance tax or gift to spouse?

Has anyone gifted their property to their spouse as opposed to maybe having to pay inheritance tax, and what is the inheritance tax free allowance please.

There are no inheritance or donation taxes to pay between spouses in the Valencia region at the moment.

marcliff wrote:There are no inheritance or donation taxes to pay in the Valencia region at the moment.

Hi, Is there a official place or letter of the Law where it actually states this?
I just recently was involved in a donation and there was definitely tax to be paid. As far as I know there is next to no Tax if you are registered in the Murcia Region. Amount of tax is all depending on who passes on funds to whom. Thanks

For clarity, I've edited my post to add between spouses which is what the OP was asking about.

From all-law.es

In theRegion of Valencia, noinheritance taxor donationtaxis payablebetween spouses;Betweenparents and children there is notaxto be paidfor inheritanceor donationsofless than 100,000 € and there is a 75% bonusfor inheritanceor donations from that amount onwards.

Interesting post, we were told we would have to pay gift tax to spouse

tigerfeet wrote:Interesting post, we were told we would have to pay gift tax to spouse

That's because gifts/donations are subject to Capital Gains Tax. For anyone thinking of going this route, in an effort to avoid the less favourable Inheritance Tax rules once the UK is no longer a member of the EU, it's important to take professional advice, to be sure that any CGT liability is going to be less than the Inheritance Tax liability that may arise from a spousal relationship.

Paulr wrote:

tigerfeet wrote:Interesting post, we were told we would have to pay gift tax to spouse

That's because gifts/donations are subject to Capital Gains Tax. For anyone thinking of going this route, in an effort to avoid the less favourable Inheritance Tax rules once the UK is no longer a member of the EU, it's important to take professional advice, to be sure that any CGT liability is going to be less than the Inheritance Tax liability that may arise from a spousal relationship.

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You have a magic crystal ball that tells you what will happen after the B word?
Sorry but I believe you are very wrong.

In 2014, the EU commission stated that the way Spain treats EU (notice EU) citizens who are non resident and those who are resident is wrong. Up until then, there was a big difference in the amount of tax you could be liable for.
Under pressure from the EU, the law in Spain was changed so that anyone inheriting from Jan 2015 would be liable for the same inheritance tax rules whether they are resident or non-resident. This means the amount of allowances in the autonomous region you live will apply to both.

OK, so EU citizens out of the way. Whether UK leaving the EU will affect those who are residents is not really known but the Spanish government has put into law a guarantee that current residents will not lose the rights they currently enjoy as EU citizens even if there is no deal.

So far so good? But what if we become non-EU citizens and they change their mind? Well, let's look at how current non-EU citizens are treated.

When the EU courts decided, back in 2014, that residents and non-residents could not be treated differently, they did not specifically include non-EU citizens in that.
In February 2018, the Spanish Supreme Court passed a judgement that treating EU and non-EU citizens breached the rules on free movement of capital and declared that non-EU and EU citizens should be treated the same for inheritance tax rules.
Good old Supreme Court.

This means that both EU and non-EU citizens will be treated the same for inheritance and gift tax.
Yayyyyy!!!!!!!

The law about treating EU citizens as the same is under the Additional Provision Two of Law 29/1987 of Inheritance and Gift Tax, which was finally approved unchanged by Final Provision Three of Law 26/2014 entering into force on 1 January 2015 for those who ask for links to the official statements.

All this is summed up in a Blevins Franks documentIHT Rulings which sort of mirror what I've been saying.
Time to put the scare stories to bed.

so a 75% "bonus" for anything over E100k