Taxes due on death of spouse.
Posted: Tue Apr 19, 2022 9:39 amHi there,
Further to our move to Spain later this year, we had a 2 hour meeting with SGM Abogados on our initial trip in March. They were recommended to us by some very helpful people on this forum. The first hour was with a conveyance specialist and the second hour with a tax specialist. We received some concerning information relating to taxes on the death of a spouse. We were informed that the total assets of the couple were treated as being owned 50/50 and upon the death of either spouse, depending on your asset values, a large tax bill will be due. The surviving spouse gets a €100k allowance but is liable to pay tax at 19% on the balance. See example below.
House value = €300k
Bank balance = €400k
Total asset value = €700k
50/50 = €350k each.
Less €100k allowance = €250k taxable amount for the grieving spouse.
Tax due = €47,500
Is this one of the reasons why so many people decide to NOT become tax resident and stay less than 6 months in Spain?
Anyone got any experience with this?
Further to this, when the surviving spouse dies, the person to whom the house has been willed, is liable to pay horrendous inheritance tax and must pay it "up front" before they get the house.
Many thnks for replies in advance.
Cheers.
John & Angie.
Further to our move to Spain later this year, we had a 2 hour meeting with SGM Abogados on our initial trip in March. They were recommended to us by some very helpful people on this forum. The first hour was with a conveyance specialist and the second hour with a tax specialist. We received some concerning information relating to taxes on the death of a spouse. We were informed that the total assets of the couple were treated as being owned 50/50 and upon the death of either spouse, depending on your asset values, a large tax bill will be due. The surviving spouse gets a €100k allowance but is liable to pay tax at 19% on the balance. See example below.
House value = €300k
Bank balance = €400k
Total asset value = €700k
50/50 = €350k each.
Less €100k allowance = €250k taxable amount for the grieving spouse.
Tax due = €47,500
Is this one of the reasons why so many people decide to NOT become tax resident and stay less than 6 months in Spain?
Anyone got any experience with this?
Further to this, when the surviving spouse dies, the person to whom the house has been willed, is liable to pay horrendous inheritance tax and must pay it "up front" before they get the house.
Many thnks for replies in advance.
Cheers.
John & Angie.