Legal Question in Real Estate Law in Spain
Taxes on Death of Joint Owner of Property
Goodmorning,
My husband and I bought a property in Costa Blanca South Spain in joint names, my husband died ten years ago, I now wish to sell the property, but have been told that I should have paid taxes on my husbands half of the property on his death.
There is no will left by my husband and we have no children.
What is the situation, what do I have to do to be able to sell this property.
Look forward to receiving a reply.
Best regards
Susan
1 Answer from Attorneys
Re: Taxes on Death of Joint Owner of Property
Assuming that you and your husband owned the Property individually rather than through a company and Your husband left no will in England or Spain you will need to produce evidence that you are the only heir, usually by production of official notarised translations of the grant of administration in England.
This will give you the legal right to sell but getting this documentation accepted in Spain can be a slow process.
Regarding tax it has been required that non residents appoint a Fiscal Representative for about 10 years in order to pay the annual proprety and wealth taxes and if you are not up to date these will have to be paid on sale.
Inheritance tax and capital gains tax are payable. Calculating the Inheritance should be done by the local Fiscal Representative but you will able to claim some releifs so it should not be excessive. Gains Tax is 35% of the gain but generally speaking you have to pay 5% of the sale price on account while the gain calculation is being agreed with the revenue authorities. Again it is best done by a local Fiscal agent