I am sure you will agree that as we get older we start to think of what might happen when we are not around and how we might be able to protect our beneficiaries from the adverse impact of death duties either in the UK or Spain (or possibly both). Whatever assets we have accumulated in our lifetime we want as little as possible to pass to the tax authorities. Even if our children might be richer and better paid than we ever were the thought of a large proportion of our hard earned assets passing into the government coffers is a bit too much to stomach – well it is for me anyway!
Of course the situation is particularly complicated for Expats because death taxes in the UK and Spain work differently and you can often be liable for tax in both countries, so much for leaving the UK behind!
From the UK perspective the issue is all about domicile – nothing to do with where you are resident. If you were born in the UK then you will likely retain your UK domicile even if you became resident in Spain a number of years ago. Take me for example, I left the UK seven years ago, but still have a house there and some accounts and a football season ticket so I am pretty sure HMRC will say I am still a UK domicile which means my worldwide assets are subject to UK Inheritance Tax.
As far as Spain is concerned Succession tax is a problem. There is no exemption between spouses and it is the beneficiary who pays the tax which can vary between the autonomous communities. If you live in Andalucia like me then your beneficiaries could pay tax if they inherit more than 175,000 Euros when you die – even your spouse.
Like me you probably don’t want to risk losing a big chunk of your assets to the taxman in either country. That’s why it is important to put some proper plans in place by reviewing what’s at risk with a qualified financial adviser and putting into place a plan that will allow you to carry on living your carefree expat life but knowing that the taxman is not waiting to spoil things for those you leave behind.
Let us help you by offering you a FREE private consultation (worth £500) to assess your current financial position and explain how our Spanish tax reduction strategies can help. If you already have a clear understanding of your current situation we can offer a FREE tax planning assessment instead (worth £1,000). Just think you will be getting FREE advice on tax planning for Spanish residents as well as retirement, savings and wealth and death tax mitigation strategies.
Call +34 951319727 for a meeting with a financial expert or email firstname.lastname@example.org.