Tuesday, 10 January 2012

Spanish Inheritance Tax (ISD)

Impuesto sombre sucesiones y donaciones

The New Conservative Government in Spain has a major project to substantially increase the tax it collects in 2012. Yet ISD is effectively a ‘voluntary tax’ that you only pay if you don’t plan for it.

  • Details and scope of ISD
  • What various professionals say
  • Non-residents ARE liable

Are there any solutions? Please read on

No ISD is payable if the property is owned by a UK company, since even if a shareholder dies, the company can continue in existence and the shares passed on to a beneficiary under UK rules.

In recent months, my blog has carried several posts dealing with the very complex subject of Spanish Inheritance Tax (ISD). This is very definitely a subject on which you need professional advice. To access a professional please email me.

  • Detailed reading for a thorough understanding of ISD is probably best from my post on July 18th 2011. This is the link;

  • Here are some views from various professional advisers, who have dealt with the problems associated with the ownership of property in Spain and the heartbreaking situations of dealing with inheritance tax.

  • Expats and property owners in Spain - No plan for Spanish Inheritance Tax? This post includes a Widow’s sad story and the inevitable question ‘why didn’t anyone tell us’?

The question ‘why didn’t anyone tell us?’ is probably the one I get asked most often. One of the key objectives of my blog is to provide INFORMATION. I do not and will not take advertisements from financial companies. I give links only to offers and services which I have used myself or I have tested.

This leads me to understand that people working in property, financial advisers, mortgage broking, pensions, lawyers and other financial services must be open in all dealings with clients.

  • Openly disclose all commission and charges
  • Tell clients how it is – good and bad
  • Please, please, please tell them about Spanish Inheritance Tax (ISD)

I am happy to receive feedback, answer questions or refer to appropriate professionals if you email me

David Goodall
Financial Pages in Spain