My mother who is 87 has a property in Spain and I and the family would like to know how we would go about transferring the ownership of the property to either another member of the family or into a family trust. Also how much money these alternatives would cost. There is no loan owed on the property.
Your mother could transfer through her last will and subject to her personal law the property to all her heirs in joint ownership or leave the full property to only one of them.
In this case the taxes to be paid in Spain shall depend on the value of the property and on the “Comunidad Autónoma” where the property is located. Some “Comunidades” have exemptions for the inheritance tax.
She also can also transfer her property through a purchase and sale contract. In this case the tax shall be of 7% if it is transferred before 31st December 2012. From such date the Transfer tax shall be from 8% to 11% depending on the value of the property.
In Spain is not foreseen the figure of the a family trust.
Please, see our post on overpaid inheritance tax for more information.
Leave a Reply