Yes. Finally, Brexit is definitely coming but I feel like nobody is really sure about how is it going to taste. That is why I would like to give some good news for the tax wise people.
As I said before, nobody knows whether will be a provisional period of time before Brexit is fully in force or how long this would be. And this applies also for taxation regulations in my opinion. The situation now is that if an English person pass away their direct beneficiaries (spouse and children) have to pay taxes the same as we the Spanish do or any other EU member citizen does. With regards to the Inheritance Tax this has almost disappeared on many Spanish regions. At least there are applicable many personal allowances rather high for spouse and children. In the Valencian region for instance the spouse and each children have a personal allowance of €100,000.00 which is more than enough in most cases to not pay any Inheritance Tax at all.
When Brexit is here and in force the situation for the English will change dramatically and the same spouse and children who had a personal allowance of €100,000.00 before Brexit will see this personal allowance reduced to not even €16,000.00 and the difference is huge. Besides, the Inheritance Tax rates are progressive and increasingly depending on the value of the estate.
As the situation is the risk of facing a very expensive Inheritance Tax soon is quite high. And taking into account that many British have holiday homes in Spain and properties are very valuable assets the risk is clear to see. Besides, the risk is even higher as during the real estate boom years the tax office updated rapidly the rateable values of the properties which are in many cases now even higher than the market values and making many taxes (including the Inheritance Tax) be based on higher values.
So an easy solution is to donate the property to your spouse (if they will remain EU member citizens after Brexit) or your children now and benefit from the favourable Inheritance Tax rules applicable so far. You can keep a life interest on the property which so from a practical point of view nothing changes at all because the file interest right will allow you to let the proprety if you wish. When the time comes your beneficiaries will have to pay Inheritance Tax for the life interest value set at the time of the donation which is usually very low therefore the Inheritance Tax bill be zero or very low. And they will really appreciate it as the saving will be of thousands of Euros.
Having said that I would like to contribute English people to save thousands of Euros by making this special offer for donations to spouse (not English) and children of properties owned by English persons. Instead of the usual fees of |€1,500 + VAT I will make a 20% discount (€300 off) for all the persons who confirm they want to donate before December the 31st 2018. The offer includes to get all the NIE numbers (identification foreign person number) for as many people involved in the donation for free. And each application is worth €150.
So if you donate to spouse (not English) and / or children we will charge only the fixed fees of €1,200 + VAT and all the NIE numbers needed for free!!!
If you are interested or wish more information, you can contact me HERE and I will explain in detail how you can save 20% on legal fees and more importantly you will save thousands of Euros on Inheritance Tax.
Thank you for your time and attention and I hope this information is of use. You are very welcome to share if you liked it. Please, note that this is general information on legal subject and cannot be used as specific advice on legal situations. It is always recommended to seek legal advice for any specific situation you might be involved.