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.

Three Films You Need to See Before Moving to Spain

Three Films You Need to See Before Moving to Spain

Are you thinking about moving to Spain? These three movies will definitely get you in the mood.

It can feel like moving anywhere, even to Spain, is a laundry list of chores that never seems to end and just leaves what should be an incredibly exciting time the most stressful time.

Investing in movies and film can be one of the most

lucrative investments in the markets place. find out more

Filling in all those forms and applications, all the legal and financial paperwork, doing all the packing and tying up all those loose ends…it’s easy to see how it can be overwhelming. It’s still important to take some time to remind yourself of why you chose to move Spain in the first place. These three movies are definitely a great way to do that.

Here are the three films you need to see before moving to Spain.

1.      Al Sur de Grande

“Al sur de Grande” means “South from Granada” in English. This 2003 movie is about a lost and demobilised soldier from England who makes his home in rural Andalucía for a year. It’s a great movie that will also prepare you for some of the big culture shocks waiting in Spain.

The backdrop of the movie is beautiful thanks to the Alpujarra hills nestled into the background. The dry humour and the excellent performances make this movie great by itself. But if you’re about to live in Spain yourself you’ll definitely connect to the Englishman as he does what you’re about to do. From the initial language barriers and small misunderstandings to the wide world of love the narrative of the movie could very well sync up with your own experiences.

2.      The Business

The Business is a 2005 movie filmed in and around Pureto Banús. The movie, released at the height of the gangster movie period, fits that theme quite well. It follows 80s wannabe wideboy Danny Dyer as he falls in love with the fast lifestyle and easy money of the Costa del Sol before feeling that his own personal morals don’t really match up with what he and his friends are doing. He finds himself knocked from his perch and in need of a new identity.

While many Brits won’t really see themselves in the characters in the movie the film still does a great job of capturing the “anything goes” essence of Puerto Banús that, while it’s not as prevalent as it used to be, is still there in places. There’s also plenty of glitz and glamour left so the movie still shows what you can expect from Puerto Banús as a whole.

3.      Spanglish

Believe it or not a US comedy from Adam Sandler set in L.A can actually prepare you for life in Spain. The movie centres around the ignorance of the Spanish felt by the Anglo-Saxons and showcases Sandler as he attempts to understand the language, passion, and soul of his Hispanic housemaid, played brilliantly by Sevillian Paz Vega.

Sandler’s wife, portrayed by Téa Leoni, showcases the complete opposite; she displays complete indifference and ignorance to her Mexican servants and enjoys her superiority over them. While Brits and Spaniards are much more respectful and honest than this the movie still contains important messages about cultural sensitivity, tact, and humility that will serve any Brit heading to Spain well.