Resident and entitled to inheritance tax reductions? Think again
Posted: 28 July 2011 09:50 PM  
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There is a lot of talk recently about the rules regulating inheritance taxes being abolished in the province of Andalusia. These discussions are an echo of the stories and articles that have been circulating for years. Yes there is the possibility that the regional government will abolish this tax altogether, at least for resident and resident heirs. Until such a time all property owners should make sure that they have covered all eventualities to lessen the burden of this tax. Some expatriates are under the illusion that as they hold residency they will automatically qualify for the attractive reductions available. This is not the case. There are some further important factors to consider. Are you aware of these requirements? Anyone in possession of an estate or other assets should make provisions now. A Spanish will is important but I believe this is now a known fact. .  You must meet the full criteria to be eligible.  One is that you are registered on the census in a town in this region (this document needs to be kept up to date.  Equally as important that you abide by the law and make your annual tax declarations? Non compliance will allow the authorities to consider you to be a nonresident. The outcome of this will mean that your heirs will have to pay higher taxes. The ruling will be in compliance with the Law of Spain.
If you are advised to add your nonresident inheritors to your title deeds to avoid part of these future taxes on your death, Study the implications of taking this option. The expense of this exercise will probably outweigh the total costs of the duties payable. If you do choose this route you will again have to pay the full taxes, notary and registry fees. If you are considering purchasing a property, then yes it is worth adding your heirs as the cost will not increase and you costs will be the same as a normal acquisition, approximately ten percent of the value of the property.

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Kind regards,
Myra
http://www.costaadvicebureau.com

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