Wincham Consultants Limited

Wincham Consultants Limited - Tax

Quote - "Most estates will be hit with a 40% tax charge unless steps are taken..." Joe Howard - Senior Partner of Howard Mathews LLoyd Accountants UK

Spanish probate law differs greatly from the UK in Many ways Inheriting property can be a lengthy and costly process. At Wincham we specialise in advising our clients how to form a UK Limited Company in order that property can be bequeathed with the minimum of cost or effort.

Example 1

1. Jack dies in 2007.

2. Jack has a property in Spain valued at 300.000 euros.

3. His Will names his wife (Jill) as heir, and two children as alternative heirs.

4. Jill, (Jack's wife) survives Jack.

5. At the time of Jack's passing the property belongs 50% to each of them.

6. In Spanish law the 50% owned by Jack falls into probate.

7. Value of the inherited portion (i.e. Jacks half share) therefore is 150.000
euros.

8. Procedure and time frame for the registration of the house into Jill's name.

  • Obtaining Power of attorney for probate procedure = (15 days)
  • Obtaining Certificate of the Registry of Last Wills = (30 days minimum)
  • Petition of Will to Notary = (15 days)
  • Declaration of goods for payment of ISD (Inheritance tax) = (10 days)
  • Payment of tax = (15 days)
  • Notarising probate deed = (10 days)
  • Registration of inherited portion in Land Registry = (30 days)

Dependent upon the time of year, court workload, notary schedules and delay possibilities, any or all of these time scales could be doubled or more.

OVERALL TIME SCALE: 4 to 6 months. During that time, if a bank account is also inherited this will be frozen too!

Expenses (approximate):

1. Legal fees for the probating process are as an average of 5000.

2. Tax to be paid in that case is shown in the graph below

IMPORTANT: Please note the illustration below was calculated at the time of print and is subject to any changes by the Tax office in Spain.

Taxable Amount:
150.000
Family reduction:
15.956
Taxable Balance:
134.043
Taxable Payable:
23.727
Registry Fee & POA:
450.00
Legal and Probate fees in Spain:
5000.00
TOTAL LIABILITY:
29,177.00

The safe, legal alternative to an initial 29,177.00 Tax and Legal bill is :

With the property in Spain owned by a UK Limited company:

  • Jack dies and is the owner of 50% of shares in a UK company which owns the property.
  • The transmission of shares is held in the UK and there are no legal costs, no fees in Spain.

Example 2

At a Later Date , When Jill dies:

Their children (the two sons 30 y/o, 25 y/o) will have to probate the property once again

Every child: Same fees, same timing, same tax by each of them.

However the probate becomes even more complicated as there are now 2 beneficiaries, therefore legal expenses effectively increase by 50%, and tax liability now falls on both beneficiaries.

The safe, legal alternative to a SECOND Inheritance Tax Bill

With a property in Spain is owned by a UK company, there will be the correspondent transmission of shares and no liabilities under succession law in Spain. No fees, no legal costs

Why not contact us to find out how you can take control of the situation and ensure that your family receive the full share of your Estate and everything that you have worked for

Find out how Wincham IHT can help. Get a FREE quote

Simply complete this form and we'll be in touch shortly to see how we can help you make substantial tax savings

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Wincham Consultants Limited
Wincham House
Greenfield Farm Trading Estate
Congleton
Cheshire
CW12 4TR

Offices on the Costa Blanca

Quotes

"Although the value has increased by 300,000, virtually the whole of that increase has been paid to the Spanish and UK tax authorities..."

Charles Deacon
Retired Corporate & Inheritance Tax Lawyer, UK

"...there will be...NO liabilities. NO fees, NO legal costs"

Maria L. de Castro
Legal Advisor Spain

"With your Assets in a UK Limited Company, there will be no taxes in Spain, and tax relief and low taxes in the UK"

Malcolm Roach M.I.C.M
Managing Director, Wincham Investments Ltd

Specialists
Malcolm Roach M.I.C.M
Director (UK)
Mark Roach
Director (UK)
Jaime Vives
Director (Spain)
Accreditations