The need to make a will is obvious to most people. The decision to get up and do it is often harder to achieve. When you make that decision to make a will in Spain, make sure you have done your research. Inheritance tax is a much bigger issue here than in the UK and your relationship to inheritors and whether they are resident or non-resident makes a big difference.
Must of us aren’t too keen on paying tax once, let alone twice. So it’s a good thing that Spain has a double taxation agreement with many countries. This means that two countries agree that you only have to pay tax in one of them. But when should you change over? Once you have lived in Spain for more than 183 days then you should pay your taxes in Spain.
The real sting to complimentary tax is that many Spanish house buyers don’t know it exists and it creeps up just when they think everything is paid for. After four years of living in a property you don’t suddenly expect to get a tax demand that dates back to when you bought it.
Complimentary tax often takes home buyers by surprise. It is an additional tax that can be levied any time up to five years after you bought a property. At a time when Spanish house prices have dropped considerably, an increasing number of purchasers are receiving this rather unpleasant bill.
Taxes are inevitable and inevitably confusing, especially in a foreign country. Here is a potted guide to how to cope with Spain’s fiscal system.