What happens to my Spanish Assets following Brexit? Will I have to pay more Inheritance Tax?
The United Kingdom officially left the European Union (EU) on 31st January 2020, but those with assets abroad, in particular Spain, may be wondering what happens to their Spanish assets and the tax consequences they may face.
Inheritance Tax (IHT)
You will be pleased to know that the IHT position has not changed and will be dealt with in the same way and must be paid within six months of the date of death.
Other Taxes for non-residents
There has been a rise in Income Tax, Rental Tax and Sale Tax. It is advisable that you seek advice from a Spanish qualified solicitor if you have concerns about your IHT or other tax liabilities in Spain.
Having a Will in Spain
It is important that you have a Will both in Spain and in England and Wales. If you do have a Spanish Will, if it was written before 2015, then you may want to revisit it. If you do not have a Spanish Will, you need to strongly consider putting one Will in place.
In Spain the EU Succession rules apply. These rules are forced heirship rules and means that 1/3 of your estate has to pass to children. By putting a Spanish Will in place, you can dictate how your Spanish Estate is to be distributed and what law is to apply, therefore if you want the law of England and Wales to apply this can be stated in the Spanish Will.
If you have Spanish assets and would like us to point you in the right direction then please call our Wills and Estates team on 01206 547 431 and we will be happy to assist.