Left a property in Spain in Will

J

jinxmeister

Registered User
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Hello all,
I have a query I'm hoping I can get some advice on. My mother's partner who passed away recently left his home to me in his will. The house is in Spain and is worth about 150,000 euro . My mother also lives in Spain in her own home. He had no children of his own but does have a niece and nephew. For reasons I know nothing about, he has cut them out of his will. My own siblings all have homes of their own and I don't so maybe that's why he left it to me. I have a feeling that his niece and nephew may contest the will. I am not sure what to do about this situation.

The ideal solution would be for me to just sell it and get the value of it to help me buy a house here in Ireland, but my mother has told me that she would like to leave it as is for family holidays and has also mentioned to the nephew that we could all avail of it (including the niece and nephew and their families). To be honest I'm reluctant to sell it and get money from it as I fear it would cause problems in both families, but the fact remains that he has willed it to me, so am I liable for inheritance tax just by virtue of the fact that he willed it to me?. Any advice would be really appreciated.
 
but my mother has told me that she would like to leave it as is for family holidays and has also mentioned to the nephew that we could all avail of it (including the niece and nephew and their families).
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This has nothing to do with your mother. Frankly for her to suggest that her partners relatives use your house is asking for trouble. In this situation in my opinion you should get rid of the house immediately especially if these people are being led to believe they can help themselves to use your house as and when they wish. I see problems ahead, I'm sure you do too.
so am I liable for inheritance tax just by virtue of the fact that he willed it to me?. Any advice would be really appreciated.
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This property is in Spain so at first instance you must find out your liability under spanish law- you will need to consult with a solicitor in Spain. Then once that liability is determined you must check your Irish tax liability. I presume a double taxation treaty is in place between the two countries- any one know for sure? But you still have to make a return here- and you may still be liable for tax here depending on what the spanish liability is- consult a tax advisor here too.
 
Vanilla said:
I presume a double taxation treaty is in place between the two countries- any one know for sure? But you still have to make a return here- and you may still be liable for tax here depending on what the spanish liability is- consult a tax advisor here too.
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We have a double taxation treaty with Spain. [broken link removed] confirms this and give details of same.
 
As well as inheritance tax, remember to include recurring annual costs in your analysis. These would include insurance, maintenance, and (possibly) Spanish property taxes and rates. Given all of that you may have to "reluctantly" sell it as you can't afford to keep it, and have to prioritise saving for your own home in Ireland -- that's the line I'd take with your mother.

Of course herself or her partner's family are free to make an offer for it, and you might consider a discount on the market value to smooth things over!
 
I'm pretty certain you also lose your first time buyers status. You will receive less in TRS and pay higher SD rates.
 
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