Avoiding Spanish inheritance tax

avoiding iht in spainAre you leaving your savings open to unnecessary Spanish Tax?

For qualified advice, contact me at john.hayward@spectrum-ifa.com or call me on (+34) 96 558 7633 / 618 204 731

Savings with UK banks and investment companies could form part of a Spanish Inheritance Tax (IHT) calculation.

If you have money in a Spanish bank, the Spanish tax authorities know about it. If you have money in a UK bank, they probably know about this too due to information passed over by the UK tax authorities. Of course, if you have over €50,000 in a UK bank account you will have reported this to Spain within your Modelo 720 form.

For a Spanish tax resident inheritor, Spanish IHT is due on worldwide assets. Therefore, a Spanish resident wife, inheriting from her husband, could pay tax based on their Spanish property and other Spanish assets PLUS tax on the overseas assets, including money in a UK bank account.

The English Will does NOT stop the Spanish tax authorities claiming Spanish IHT (Succession Tax) on overseas assets. The Will governs the distribution of the estate, not its taxation directly.

We can help mitigate, delay and even sometimes completely avoid Spanish IHT by placing money in a Spanish compliant insurance bond based outside Spain. Suitably arranged, the bond could save many thousands of euros in inheritance tax.

For qualified advice, contact me at john.hayward@spectrum-ifa.com or call me on (+34) 96 558 7633 / 618 204 731