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There are a number
of ways of removing or reducing inheritance tax liability such as a Family Trust,
an Offshore Company, Property Disposal or the 'creation' of debt.
Certain tax reduction
activities may not be suitable for everyone and it can be a
complicated and sensitive area of financial planning.
But just a bit of
foresight can pay huge dividends when it comes to Inheritance Tax, so
start planning now so your hard-earned assets pass to your loved ones,
not the taxman. A good place to start is by working out your assets
today with Peter Male Financial Services SL.
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Inheritance Tax &
Tax Planning
The objective of personal tax planning is to minimize or defer taxes payable. This requires a thorough understanding of Spain & the UK's Tax Laws. Here are just a few reminders on why to plan ahead:  Work
out your assetsTake into account everything you own whether in Spain or the UK and then you can plan to cut your Inheritance Tax bills. Remember to review the value of your assets every few years**. Making
a Will
This is the most fundamental piece of Tax planning. And remember to keep your will updated. If you have assets in Spain it is advisable to make a Spanish will. Spanish Inheritance
Tax LawsAssets located in Spain are subject to Inheritance Tax on death of a spouse and can be as high as 34%. Whether resident or not or whether the deceased leaves a Will or not the tax assessed is payable within 6 months of death. If the bequest is to more distant relatives or to non-relatives the tax can be even higher if the inheritor is already wealthy. The tax could be as high as 81.6%. |
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What is
Spanish Inheritance Tax?
Inheritance tax is the liability of the inheritor and is taken from
the deceased estate. If property is involved it cannot be used as
collateral security to provide a loan or cannot be sold until the tax
is paid. In the UK there is an exemption on transfer of assets on
death between spouses and in Spain there is a small exemption of
approximately €16,000.
With a total share
of ones estate of €250,000 the inheritance tax liability in Spain
would be
€42,716*. This would have to be paid by the beneficiaries
before the assets are released/transferred (*2004 tax year). |
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Tax Planning
Tips
Think about insurance. If despite all your careful planning, your estate is still likely to be liable for Inheritance Tax, consider taking out insurance to cover any eventual tax bill.
REMEMBER that should you wish to get involved in creating trusts you will need proper professional advice. The same goes for creating a Will. A badly-written Will is almost as bad as no will at all. At Peter Male we provide all professional Investment, Will's and Trust services.
Think about insurance. If despite all your careful planning, your estate is still likely to be liable for Inheritance Tax, consider taking out insurance to cover any eventual tax bill.
REMEMBER that should you wish to get involved in creating trusts you will need proper professional advice. The same goes for creating a Will. A badly-written Will is almost as bad as no will at all. At Peter Male we provide all professional Investment, Will's and Trust services.
| Avenida Juan Luis Peralta, No1, 29639 Benalmadena Pueblo, Malaga, Spain. |
Tel.: 0034 952 569 669 Fax.: 0034 952 569 645 e-mail: info@petermale.com |
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