Revision to Inheritance Tax Law Could See 30,000 Brits Compensated

Revision to Inheritance Tax Law Could See 30,000 Brits Compensated

Thousands of Expats can claim Compensation so speak

with the experts at Costa Del Sol Property Group

Spanish authorities could soon compensate thousands of Brits who were taxed unfairly. The European Court of Justice ruled last year that Brits who inherited a Spanish holiday home between 2011 and 2014 were charged a high rate of Inheritance Tax (IHT). Thousands of Brits may now be eligible to claim back these excessive charges authorities forced them to pay.

It’s estimated that the charges that were ruled to be unfair and illegal were applied to 30,000 Brits. At the time of inheritance they were classed as non-residents in Spain. Even spouses of deceased property owners who spent over half of the calendar year residing in Spain were erroneously categorised like this.

EU rulings mean that Spain has been now been forced to change their IHT laws that would previously levy punitive charges (some of which could reach as high as a third of the value of the property) in the event that a home was inherited by a non-resident EU citizen.

The changes in the law mean that legal proceedings have started to reclaim back the money paid to the Spanish tax authorities. Even so experts believe that it won’t be so simple to claim back the money. Right now the compensation procedure has not officially begun, though the Spanish government has created a five-year window that claims could be made in.

Spanish legal experts say that it could take six to eight months for a claim to be filed and compensation to reach the claimant. Many Brits would consider this wait worth it; the previous IHT laws saw Spanish residents become exempt from as much as 99% of IHT, while people who were deemed to be non-residents had to foot the entire bill; which could work out as being up to a third of the value of the property.

Spanish authorities demanded that IHT be paid within six months of inheriting the property. The British were the hardest hit by these charges because they are the largest group of foreign property-owners in Spain. The changes to the law were introduced in September 2014. It took a while but it looks like Spanish authorities have begun to get the ball rolling. It looks like the average repayment will be around €25,000.

Spanish authorities have conceded that non-residents who inherited a Spanish property within the past four-and-a-half years are eligible to claim back their taxes, but Expat homeowners in Spain only have one chance to lodge their bids for compensation.

If you  think you have been over charged then speak with Costa Del Sol Property Group today and claim your money back.

Spaniards Could be Getting Third General Election before Christmas

Spaniards Could be Getting Third General Election  before Christmas

Spain hasn't suffered al all without an elected government

on the contrary Spain has flourished on all levels 

Living in Spain with the Spanish political situation has gone from being a farce to being just outright bizarre. It’s becoming increasingly likely that Spaniards will have to head to the polls for the third time in twelve months to vote following the general election of last December. It looks like the vote this December could even fall on Christmas day.

The second general election, held in June, ended with things looking similar to how they did in the first one from December. The People’s Party (PP) of acting Prime Minister Mariano Rajoy won the most votes but did not quite gather a majority. They also didn’t have enough friends to call on to form a coalition.

While there was always the chance that there could be a third election many hoped that a compromise would be made over the summer. Rajoy himself recently agreed to a six-point plan of action given to him by the centre-right Ciudadanos party in return for their support in forming a coalition. He also agreed that at the end of August he would be submitted to a confidence vote in parliament.

The main problem that has dogged the People’s Party is still around however in the form of the Socialist party. They have been unrelenting in their opposition to Rajoy and his PP. Unless they support Rajoy or decide to not be included in the general election it’s unlikely that the political deadlock will ever end.

This is where things really get interesting. In the – quite likely – event that a vote of no confidence arises Spanish law dictates that the King of Spain must dissolve parliament and arrange an election 54 days later.

The confidence vote is set for August 30 and if you do the maths you’ll quickly work out that 54 days after August 30^th is Christmas Day.

Barely any Spaniards will like the idea of abandoning their Christmas plans to drag themselves to the polling station and vote for the third time on what boils down to the same election.

As such it’s expected that turnout will be down sharply if the election is actually held on the 25^th. There are also people who believe that the date could have a positive effect on turnout. They surmise that people gathering with their families away from work will likely make politics a hot debate and it will cause more people to come out to vote.

That the electorate has been asked to vote for the third time in a year shows just how dissatisfied the Spanish are with the political climate of the country. It seems like Spain is a country where either the People’s Party or the Socialists are the ones in power.

The funny thing is that Spain has done just fine without a real government these past 12 months. More people are employed, the GDP is on the up, the property market in Spain continues to improve and tourism is the best it’s ever been. With Spain holding itself together so well it wouldn’t be that surprising if Spaniards continued to vote to stop a real government from forming and messing everything up.

Brexit Could Leave British Expat Pensioners 50k Worse Off

Brexit Could Leave British Expat Pensioners 50k Worse Off

Brits retiring and moving to Spain and to other EU member states are able to claim the same incremental pension they would receive if they stayed in the UK. Things could look very different if the Brexit goes through.

Its looking more obvious that leaving the EU

will have consequences

The current pension agreement in the UK is a “triple-lock” agreement where British pensioners in the EU have their pensions rise with annual rates of inflation. Experts are warning that this could all change if the UK leaves the European Union.

The UK will hold a vote on if they will leave the EU on the 23^rd of June and, should they leave, they will have to strike up new agreements with countries that house British retirees.

The policy that gives British pensioners an incremental increase is an EU-wide policy. The policy says that pensions increase by either wage or price inflation, whichever is higher, with a minimum increase of 2.5%.

If the UK fails to secure an agreement like this with other countries such as Spain, then British expats will find themselves in the same situation that is found in Canada, Australia, and New Zealand. In these countries the state pension is frozen and stays at the rate it was when they left.

As a result a Brit moving to  Spain or an EU country after the Brexit could find themselves up to £50,000 over 20 years according to calculations by AJ Bell. A 65 year-old retiring today would receive £155.65 per week, but 20 years without a rise on that could easily mount up.

AJ Bell warned that a Brexit would cast the aspirations of people wanting to retire in Europe, or already retired in Europe, into doubt. Some have faith that the government will be able to protect British expats if the Brexit goes ahead, but it should be noted that the UK has yet to set up a deal like this with a non-EU country since 1982, mostly because of how much it would cost.

While people who are not expats themselves may see this as one of the many EU-led costs to taxpayers, there is no doubt that anyone who will benefit from this agreement should chose to vote remain so that their pension is protected.

Ross Altmann, the Minster for Pensions, said that it was important to clarify this matter and make it a part of negotiating the UK’s exit if the votes go that way.

If the UK does vote to leave the EU there will still be a two year time period where EU treaties still apply, so there is likely going to be a lot of political back and forth in that time. Shailesh Vara, the Parliamentary under-secretary of State for Justice said that the Conservative Party don’t have any plans to change the current policy wherein British pensioners abroad have their pension payments frozen.

She added that a Brexit would leave a lot of pensioners who have worked hard to secure their future and enjoy their retirement in the dark. With the current rules the UK and Europe enjoy what is called the “triple lock” system that ensures their state pension is protected.

While the deadline for registering to vote by post has passed it is still possible for expats who have lived abroad for less than 15 years to register a proxy who can vote on their behalf at the upcoming referendum.

Spain’s Booming Tourism Sector Could Grow 3.8% This Year

Spain’s Booming Tourism Sector Could Grow 3.8% This Year

Spanish resorts like Puerto Banus has always had success when it comes to attracting tourists even in winter.

The Spanish tourism industry has caused the Spanish economy to recover as well as brought smiles to the millions of Brits every year. It’s also behind at least one in five jobs that have been created in Spain this year. The Spanish tourism industry is set to continue to grow in 2016.

2016 all set to break records

Exceltur, the driving force behind the Spanish tourism sector, has altered their growth forecast for 2016. They originally estimated a growth of 3.4% and have since revised it to 3.8%. So the already strong start to the tourism industry seen in 2016 is going to be strengthened even further once the holiday season officially begins.

The Spanish tourism sector has grown for the past ten quarters, or two and a half years. This means that each quarter has seen more money come in the last and the growth has been at least 3%. This means that the tourism sector is the best-performing sector of the Spanish economy.

In the first quarter of 2016 the tourism sector brought in a GDP of 4.3% in the first quarter of 2015. It also created 89,000 new jobs along the way. All of this happened during a time where things are typically quiet for the tourism industry in Spain.

Tourism has always been something Spain is good at, along with the real estate market which is itself seeing a recovery.

Spain is expecting record numbers of visitors this summer thanks to the recent safety concerns arising in other popular tourist destinations such as Turkey, Egypt and Tunisia. It’s expected that holidaymakers will find their way to the more popular destinations in Spain, most of which can be found on the Costa del Sol.

It’s been calculated by Exceltur that Turkey, Egypt and Tunisia have seen 870,000 less tourists than usual so far this year, with Spain seeing an extra 799,000, so it’s not hard to guess where they’re going instead.

The data also shows that Spain has seen 12.5% more visitors so far this year, while Egypt has seen 46% less foreign tourists in 2016.

Exceltur did have some words of warning among all the good news though. Even though Spain is seeing a lot more tourists each tourist is spending an average of 7.8% less than they usually do. Exceltur are recommending that Spain try and bring in some more big spenders rather than relying on this low-cost tourism.

It’s expected that the big spending crowds will flock to the country during the summer months, as they always do to enjoy the beaches, food and Spanish lifestyle.