Many UK individuals with a property in Spain are donating their property to their children or other relatives.
The Brexit has brought much uncertainty and potential exposure to high inheritance taxation.
Following the Brexit UK individuals will not benefit from the same taxation as EU citizens.
The current allowances and discounted rates of inheritance/donation tax, mean that the costs will rise following the UK´s exit from the EU.
The current cost of transfer to children is particularly low in many regions of Spain.
For example, in Comunidad Valenciana, the tax payable for parents donating to children are:
Property value €100,000
Current Tax Nil
Tax following Brexit €12,487.54
Property value €150,000
Current Tax €1,241.63
Tax following Brexit €21,393.64
Property value €200,000
Current Tax €3,232.10
Tax following Brexit €31,852.80
Parents can retain the right to use the property and this will be registered on the deeds at the land registry.
If the property was to be sold, it would need the approval of both the parents and the children.
In this way you are protected even once the property has been donated.
If you would like a bespoke quotation based upon your circumstances, please don´t hesitate to contact us on 0203 137 1320 or info@gbabogados.co.uk
