How can I minimise my liability to Spanish death duties ?
As a non-resident of Spain it is worth considering owning the property in joint names where appropriate and passing your respective shares in the property to, for example, your children. If you pass your share to your spouse you will in effect by paying double Spanish death duties as there may be duties payable on your death and then in turn on your spouse’s death, not only on your spouse’s share, but the share inherited from you. Each beneficiary has his or her own tax allowance and accordingly the more beneficiaries there are, the more allowances can be set against the value of the estate. As a Spanish resident, where the worldwide assets are liable to Spanish death duties, the value of the estate can be minimised through careful tax planning and appropriate professional advice should be taken.
