Talk Quesada forum

Interesting about inheritance tax. Do you know what the position is if you are not resident and have a holiday home ? Husband and wife joint owners, both over 65, property valve approx €250k.
Thanks.

ajf1950 wrote:Interesting about inheritance tax. Do you know what the position is if you are not resident and have a holiday home ? Husband and wife joint owners, both over 65, property valve approx €250k.
Thanks.

Since 2014 there is no difference between residents and non-residents providing you are an EU citizen. There is no difference in tax allowances or offsets. The only difference is you couldn't claim it was your main home so the over 65 and resident for over 3 years wouldn't come into play.
If you look around the interweb thingy, make sure they are dated after November 2014. That is when the EU rapped Spain's knuckles for discrimination against EU citizens on grounds of residency.
(No, I'm not holding my breath to see if the situation changes after Brexit).

Also interesting to note that tax allowances are less and basic tax rate higher in Spain than in UK but not sure how that evens out with the exchange rate

Ron Hill wrote:Also interesting to note that tax allowances are less and basic tax rate higher in Spain than in UK but not sure how that evens out with the exchange rate

If you are over 65 the basic tax allowance is €6700. The earned income allowance is €2000 which includes pensions. (there is a higher rate of earned income allowance but only if income is less than €6500). Marriage allowance is €3400. Therefore my allowance €12100 which, at today's exchange rate, is not far off the UK tax allowances. Of course, if I had elderly parents or children living with me it would be more.

Is the basic rate the same if under 65 ?

chrisp58 wrote:Is the basic rate the same if under 65 ?

€5550 if under 65. €8100 if over 75.

Marcliff can you explain where you get 12000€ allowance as you do not just add the married couples allowance to your own there is a correct formula to be carried out

jpeg wrote:Marcliff can you explain where you get 12000€ allowance as you do not just add the married couples allowance to your own there is a correct formula to be carried out

Yes, I know and it's quite complicated and I was generalising. It works out after the tax is done not before like UK so it's an allowance from tax and not earnings. It's why I've said, many times, get a gestor or accountant to work it out for you. However, the allowances are not as low as some people think and we will all vary depending on tax paid in UK, taxable earnings in Spain, certain dual tax agreements etc etc.
There is also the fact that, if you are tax resident in Spain, you don't get a choice on where you pay your tax unless you can show UK is your centre of vital interests.
My solicitors charge €170 a year for the two of us (for all legal matters including taxes) and, so far, I haven't paid any income tax in Spain.

Thanks Marcliff,
Good to hear no difference for non residents since 2014.
Do you know how inheritance tax is calculated when one spouse and joint owner dies ?
Then what happens when the surviving spouse dies and leaves the property to a son / daughter ?

Have to say that being single income tax allowance is as marcliff says 6700 if you are over 65 plus the 2000 earned income allowance making a total of 8700. This falls far short of the £11500 allowance in UK and for me is the worst thing about living in Spain. Everything else is good