View Full Version : Paperwork Inheritance tax England/Spain

22-04-2014, 13:44
I own 50% of an apartment in Tenerife and other property in England. I am a resident of the Isle of Man but am moving back to England soon.
I expect my family to have to pay inheritance tax in England when I pass away and thought that the value of my 50% in Tenerife would be included in my estate. BUT, I have just read an article in a magazine which says....quote....
" In Spain your beneficiary must pay the tax on the amount that they inherit. In the U.K your estate could be charged Inheritance tax (IHT) on your worldwide assets which will include the property in Spain. As the two taxes are not the same one cannot be offset against the other under the Dual Taxation Treaty."
Can anyone clarify this. What does the term.... "As the two taxes are not the same" , mean.
Secondly, what percentage is the tax that would have to be paid in Spain?.