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The applicable law in the inheritage procedure its the national of the pass away person
In your case swiss law
The taxes to be paid in Spain are about the real state propieties and in the comunidad autonoma where the propiety is
In your case the sons will have to pay taxes in Gobierno de Baleares
The amount to be paid will be between 1 and 7 per cent of the value
If the sons are no residents I think they will have to pay 7 percent but if you contact a local lawyer there he probably could get that you only have to pay 1 per cent
I will be here if needed
Thank you. Does it make a difference that the house is in a S.L?
What would determine whether my children would have to pay 1 or 7 % ?
Does Spain have a tax agreement with the UK so they would not have to pay IHT in both countries?
Yes, they will pay for the value of the participation IN THE sl
The diference between 1 / 7 per cent its when you give them, and if they are resident in Baleares or not
The transmition tax is due to pay in all cases even if you paid in UK
Maybe the best way to pay less its to donate them in live ( 1 per cent )
Can I donate the whole SL to my children without paying any transfer fee?
No, you have to pay at least 1 per cent
This is then the 1 % which constitutes the IHT my children then will NOT have to pay as they would then own the shares in the company?
The 1 per cent is due to pay when you donate them, the shares in the company
So I would continue to pay rent for the benefit of using the house as I do now?
If i die within 7 years would the situation be different as regards IHT?
You can donate the nuda propiedad and to keep the usufructo for you all your live
And it will decrease the avlue of the tax
What would the rate be then?
The value of the usufructo will depends on your age
Ok, thank you very much for this time!
At least its is calclated over 10 per cent of the value and your son will have to pay 1 per cent of this value ( So minimun 1 per cent of 10 per cent)
here its explained in spanish