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José M spanish attorney
The taxes to be paid in Spain will be in the comunidad autonoma where the propiety is ( In its tax office ) The values are different between one comunidad autonoma to each other
Another tax is the inheritage tax to be paid when one of they pass away
I mean There are three difrent moments to pay
So even though the legal owner is not changing - only the life interest is forgone - there is still tax to pay in Spain? What approximate percentage of the value is payable?
Yes. Once one og them pass away you will have to pay taxes for the half of it
But remember, once one of them pass away the names in the propiety register will change
Once one will be pass away you will be the nude owner of the half of it
Thank you but approximately how much tax is payable - very approximate?
There are two taxes to pay, one in the comunidad autonoma and the other one in the city hall
In order to know the sum to pay I need to know the catastral value of it and your age, and their ages
In some places in spain you only has to pay 1 per cent
In orther palces even 40 per cent
Where the propiety is in Spain?
Thank you - the property is worth about euros 250,000 - I am 56 and my father is 83 - the property is in Marbella.
Ok, I am sorry to say that in Marbella ( Andalucia ) its the worst part in Spain to have to pay. Probably you will have to pay 35/40 per cent
Okay thank you that seems very high - is it too late to transfer the property to a limited company to save this tax?
Yes, you are on time to study several options
To make a company could be one of them
Thank you very much - does it need to be a Spanish company or a UK company?
But you will need to contract an spanish attorney who study the case perfectly because you will have to protect your own interest againts the interest of your father grilfriend
There are a lot of problems to study on the case. One of them is that the owner of a propiety in spain NOW ( since 2013 ) has to decalre taxes in spain