Avoiding tax on your new property with Offshore Money Managers
The rules on Spanish Inheritance Tax (IHT) differ considerably from other countries (especially those in the UK). Without proper planning, you could be faced with paying many thousands of Euros in tax when, on the death of one of you, the survivor inherits the other's half of the property. Your children will then also be faced with paying IHT when they eventually inherit. In this scenario, the tax will effectively be paid twice on half of your property. Also, the tax must be paid within six months of death and the property cannot be changed into the names of the inheritors (or sold) until the tax is paid.
Lets look at a typical example; on a property of €500,000, jointly owned and with two children eventually standing to inherit, the tax on the first death could be as much as €38,875 with a further €77,750 due when the children inherit. That's a total of €116,625 and where someone inherits from a person to whom they are not directly related (i.e. A couple who are not married, or children who are from a previous marriage) the tax is doubled.
Offshore Money Managers CDS S.L. (OMM) are the only fully regulated broker operating on the coast, and are proud to announce a close working relationship with many of the top Lawyers and Real Estate companies on the coast. Our unique position of being the only regulated advisor on the coast means that all of our clients have the vital peace-of-mind before entering into any discussions with OMM.
OMM can offer financial advice on a wide range of your financial matters, but in the case of the impending IHT problem for expat residents in Spain, it is our SITRA scheme that is most important:
OMM’s Spanish Inheritance Tax Reduction Arrangement (SITRA) can reduce the potential tax on your Spanish property by up to 95%.
Live life a little: Not only does the SITRA scheme help you to protect your loved ones against the harsh tax laws in Spain, but you can also benefit by releasing a regular income and or Cash Lump Sum from the equity tied up in your home. With the reduced income levels provided by pensions (due to adverse recent market conditions) and the higher cost of living in Spain compared to a few years ago, most retired people would now agree that an additional income to supplement their pension would greatly improve their lifestyle.
The Main Features are:
- It can reduce Spanish Inheritance Tax by up to 95%
- It releases cash from locked-in capital
- It is arranged on a non-status basis
- It is completely self-funding
- There are no age restrictions
- It is highly tax efficient
Please note that the minimum property value for this arrangement is €350,000 and the outstanding mortgage should be no more than 20% of the current value of your home*
* (subject to a professional valuation)
For further details or to download a copy of "A Guide to Equity Release in Spain", please complete the Enquiry Form below.
El Corredor de Seguros es Offshore Money Managers Correduría de Seguros S.L., inscrito en el Registro Especial de la Dirección General de Seguros y Fondos de Pensiones Nº J-2126, de conformidad con la Ley 9/1992 de 30 de abril, teniendo contratada una póliza de seguro de responsabilidad civil para el ejercicio de la actividad. Nicholas Needham (Borg Eiendom S.L.) es un colaborador mercantil del Corredor, por lo que interviene únicamente como comercializador de seguros al amparo del artículo 21 de la Ley 9/1992 de 30 abril de Mediación de Seguros Privados.
The Insurance Brokerage is Offshore Money Managers Correduría de Seguros S.L. and is registered with the Directorate General of Insurance and Pension Funds Nº J-2126, in accordance with Law 9/1992 of 30th of April, holding obligatory Professional Indemnity Insurance Cover. Nicholas Needham (Borg Eiendom S.L.) is an Appointed Representative of the Brokerage whose activities solely include the marketing and promotion of its insurance products in accordance with article 21 of the Private Insurance Mediation Law 9/1992 of 30th of April.
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