property experts
DONATIONS IN SPAIN. GIFT TAX Have you been thinking about a donation in Spain? Under some circumstances and as long as the beneficiary belongs to the Group I (children, spouse, grandchildren, grandparents) NOW would be the right time to do so, before any further changes in the law under the new potential government. Depending on where the assets are located, if the donation is related to property and depending where the beneficiary is resident for tax purposes, there is a reduction consisting on 99% of the tax bill. As a result, the beneficiary, when eligible to apply the reduction (bonificación) would pay only 1% of the Giſt tax. Te same reduction would apply for monetary donations or shares in a company.
Due to the complex structure in order to know when the reduction applies, who is eligible and which jurisdiction will apply (regional or federal), we recommend you to take professional advice on the above as every situation is different. However, we must insist about the advantages for donations now, even for beneficiaries’ who are residents outside the EU. Please note that in some cases, a donation could be almost exempt for taxes in Andalucia, but it may have some other tax implications in your home country. Tis obviously needs also to be checked in advance.
GETTING DIVORCED WITH A HOME IN SPAIN Everyone knows that a divorce is not only painful but expensive. Even when distributing or liquidating assets in your home country at the beginning of the divorce legal process, if one of the spouses is going to keep 100% of the Spanish property, some provisions need to be made to cover the costs for carrying out the legal process in Spain. In our experience we have had many cases, when those provisions were not made in advance, and the divorced spouse taking up the entire Spanish
property was surprised of the costs for the legal and administrative hazzle in Spain which involves a public deed authorised by a Notary public, stamp duty @1,5% of the value of the 50% acquired plus the 3% withholding tax of the same value when the owner (ex-husband or ex- wife) was not resident in Spain. In the end, what we all need to understand and take into account is that every action or transaction that we do with our assets will have a consequence and it is important to make a good planning so that whatever we do, we do it in the most cost-effective way. While every effort has been made when writing this article, we would like to remind our readers that it does not constitute legal or tax advice. We always recommend your own independent advisor for your Spanish matters.
Finally, from the Premier Law team, we would like to thank you for reading our articles and we all wish you a very Happy Christmas and our best wishes for next year. For more information, please write to us at
info@premierlaw.net or give us a call +34952764483.
PROPERTYMAIL / 23
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36
