Domicile re-visited – has Brexit had an impact? Date:12-03-2021 - 00h00 Modif.:17-03-2021 - 18h18
UK domicile has always been a rather difficult topic, but, as it determines whether UK Inheritance Tax (IHT) will apply to your estate or not, it has always been important to understand how it works, especially since Brexit. Inheritance Tax in Andalucia provides much more generous exemptions. So, is it a matter of choice? Are you able to choose which Inheritance Tax regime applies to you?
If you are not domiciled in the UK, only UK assets will be subject to IHT. So, straightaway, it’s clear there can be a huge advantage in not being UK domiciled.
Can I change my domicile?
Changing domicile is very difficult in practice. In the old-fashioned sense of emigrating to another country, where all UK links were severed and new ones established with your new home country, you might easily acquire a domicile of choice elsewhere. However, these days, when moving to Spain or France, or another country close to ‘home’, it is not so easy – for example, retaining a property in the UK, having UK investments and income sources, and even writing your Will under English Law, can all demonstrate that you have not sufficiently severed your links and acquired a new domicile.
Intentions
Beyond simple facts such as these, domicile also hinges on intentions. So, someone who moves to Spain and vows never to return stands a better chance of losing UK domicile than someone who is pretty sure that, when poor health and family pressure become significant, a return to the UK is almost certainly going to happen.
Inheritance Tax in Spain
Spain’s Inheritance regime is different to the UK, in that it applies to those who die in Spain and also to assets situated in Spain. It is the recipient of an inheritance who pays the tax, and the amount depends upon the relationship between beneficiary and deceased.
As mentioned above, Andalucia’s Inheritance Tax rules are very generous, and an estate of the same size (ie, £600,000 or equivalent) located in Andalucia could attract no tax at all, if all the assets are left to the deceased’s children, for example, but a more distant beneficiary, or an unconnected person, would likely see tax having to be paid. Other Spanish regions are not so generous and bigger bills would ensue, as would be the case in many other countries, so it pays to check carefully.
Brexit
So, has Brexit had any effect on this? Not in terms of UK and other Inheritance Tax laws themselves, nor Wills, but perhaps in the sense that your thoughts about moving back to the UK in later years might have been changed, especially if you have a non-UK spouse (due to the tough new income requirements in such cases). Or you might have UK assets that fall foul of various rule changes, and you need to consider making changes which could have an impact on your domicile, for better or for worse.
Loss of freedom of movement
If you have spent a lot of time in Spain in recent years, perhaps had a ‘foot in both camps’, and enjoyed the freedom of being able to come and go as you please, the recent realisation that you need to be rather more specific about which country you are based in might have meant looking closely at such things as where you pay tax, healthcare access, Wills, driving licences, bank accounts and other investments, and many more. Domicile and Inheritance Tax exposure in both the UK and Spain should have been part of the review because a wrong decision could prove costly.
Equally, if you left the UK after 31 December 2020, or considering doing so, you might find that the requirements for residence in Spain are too much of a hurdle and your intentions of remaining in Spain indefinitely (and saying goodbye to UK tax concerns) have had to be shelved and replaced with the alternative of spending much less time in Spain each year, with the resultant impact on domicile and UK IHT liabilities.
Wills
Don’t forget that your Will is an integral part of domicile and Inheritance Taxes planning in both Spain and the UK. Now is a very good time to consider whether yours needs to be updated.
So, as always, it’s vital to obtain proper professional advice, and this is a subject that, while perhaps not affecting you personally, could have a tremendous impact on the long term wealth of your family. Brexit has generated a number of less than obvious changes – domicile isn’t an obvious one, but it is certainly something that should be given careful thought.
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From: serraniaservices
to : serraniaservices -
the:
18-03-2023 - 07h20 Referencia de la propiedad: 101448
From: luna
to : serraniaservices -
the:
06-01-2023 - 15h17 NEW INSCRIPTION. NEW INSCRIPTION Alias : luna
From: franciscocarnero
to : serraniaservices -
the:
30-08-2022 - 15h08 Referencia de la propiedad: 101345 Podría ampliamente información sobre esta propiedad. Busco Bodega o viñedo en Ronda. Gracias
From: franciscocarnero
to : serraniaservices -
the:
30-08-2022 - 15h07 NEW INSCRIPTION. NEW INSCRIPTION Alias : franciscocarnero
From: catif
to : serraniaservices -
the:
23-08-2022 - 18h53 NEW INSCRIPTION. NEW INSCRIPTION Alias : catif
From: jokedesaveur
to : serraniaservices -
the:
29-01-2022 - 15h09 Cortijo Rosario Algamitas Hello,
I got your name from Marleen Pauwels.
I have an established hotel/cortijo rural in Algamitas for sale. Maybe we can also work together?
Kind regards,
Joke De Saveur
642.301.341
From: jokedesaveur
to : serraniaservices -
the:
29-01-2022 - 15h06 NEW INSCRIPTION. NEW INSCRIPTION Alias : jokedesaveur
From: mikesz7
to : serraniaservices -
the:
29-12-2021 - 11h32 NEW INSCRIPTION. NEW INSCRIPTION Alias : mikesz7
From: kath
to : serraniaservices -
the:
18-12-2021 - 03h07 NEW INSCRIPTION. NEW INSCRIPTION Alias : kath
From: inma
to : serraniaservices -
the:
25-09-2021 - 20h44 NEW INSCRIPTION. NEW INSCRIPTION Alias : inma
From: lucenmaria
to : serraniaservices -
the:
08-09-2021 - 15h00 NEW INSCRIPTION. NEW INSCRIPTION Alias : lucenmaria
From: suzy
to : serraniaservices -
the:
11-08-2021 - 15h15 Referencia de la propiedad: 101448 Hola, estoy al momento en Reino Unido pero estoy buscando una finca con permiso o posibilidad de construir una casa for esta zona. ya tiene el per iso esta parcela para construir una casita? Saludos Suzy
From: suzy
to : serraniaservices -
the:
11-08-2021 - 15h14 NEW INSCRIPTION. NEW INSCRIPTION Alias : suzy
From: heiguel
to : serraniaservices -
the:
13-03-2020 - 20h03 NEW INSCRIPTION. NEW INSCRIPTION Alias : heiguel
From: fini
to : serraniaservices -
the:
23-07-2019 - 19h59 NEW INSCRIPTION. NEW INSCRIPTION Alias : fini
From: serraniaservices
to : martha -
the:
11-07-2019 - 10h57 Properety Available Hi Martha,
Thank you for your query, I have spoke to the owner and the property is vacant for rental. Would it be possible for you to send me an email to: laserraniaservices@gmail.com I can arrange an appointment for you to view the property. I look forward to hearing from you , Kind regards Alex Ortiz
From: ericradek
to : serraniaservices -
the:
10-07-2019 - 12h18 Referencia de la propiedad: 100400 Hello could I have more information of this property and where it is?
Thank you
From: ericradek
to : serraniaservices -
the:
10-07-2019 - 12h14 NEW INSCRIPTION. NEW INSCRIPTION Alias : ericradek
From: martha
to : serraniaservices -
the:
10-07-2019 - 07h12 Property reference: 100497 Good Morning, is this country house still available? Our family is very interested. So, if we can view this house, we would appreciate it. Let us know.
Thank you,
Kind Regards,
Family Kaaz
From: martha
to : serraniaservices -
the:
10-07-2019 - 07h08 NEW INSCRIPTION. NEW INSCRIPTION Alias : martha
From: steve1960
to : serraniaservices -
the:
23-06-2019 - 11h37 NEW INSCRIPTION. NEW INSCRIPTION Alias : steve1960
From: jaws
to : serraniaservices -
the:
02-06-2019 - 07h46 NEW INSCRIPTION. NEW INSCRIPTION Alias : jaws
From: lisagaffney
to : serraniaservices -
the:
07-01-2019 - 02h17 NEW INSCRIPTION. NEW INSCRIPTION Alias : lisagaffney
From: serraniaservices
to : motownsend -
the:
12-08-2017 - 10h33 Propiedades área de Ronda Hola Mónica,
Tenemos algunas propiedades para alquiler en 2018 puedes ver en la web o contactarnos para las que no aparecen en la web
Un saludo
Thorwald
From: serraniaservices
to : xiki -
the:
12-08-2017 - 10h26
Hello Xiki, any info at ion you need about our properties please let us know
regards
Thorwald
From: serraniaservices
to : kisaal -
the:
12-08-2017 - 10h22 Properties Ronda Hi thank you for contacting us. Should you have any queries regarding our properties or the general buying process we would be pleased to assist you.
Regards
Thorwald
From: serraniaservices
to : jos -
the:
09-04-2017 - 10h52 Alquiler casa Arriate Hola Jos esta casa se ha alquilado pero tenemos otras en Arriate para alquilar por favor nos llamas al teléfono 608 765 990
From: serraniaservices
to : rondichi -
the:
09-04-2017 - 10h49
La parcela se ha vendido pero tenemos otras
From: serraniaservices
to : motownsend -
the:
09-04-2017 - 10h45 Visita propiedades Ronda Malaga Hola Mónica, estamos trabajando esta semana si deseas venir a visitar propiedades te podría hacer una cita.
Me confirmas que día te va bien
Un saludo
Thorwald
From: serraniaservices
to : alicevinez -
the:
23-03-2015 - 13h55 Alquiler Cortijo Estimada Alece,
El cortijo ref 99669 se encuentra disponible para alquiler de larga temporada
si deseanos envias su numero de telefono asi podremos contactarla para mas detalles
Un saludo
Thorwald
From: serraniaservices
to : fernando431 -
the:
20-03-2015 - 12h15 Inmobiliaria La Serrania Servcies Estimado Fernando,
Gracias por contactar con nosotros.
Sería tan amable de enviar su teléfono para que nos pongamos en contacto con usted.
Le informo que las propiedades 100692 y 100682 siguen en alquiler, las demás no.
A la espera de su contestación, le mando un saludo.
Lemmikki Oliver.
From: serraniaservices
to : davidgonzalez -
the:
11-07-2014 - 14h44 bonjour me alegro de verte por aqui
From: serraniaservices
to : infovivalavidalifestylecom -
the:
16-05-2014 - 11h10 Hotel Rental Thank you for your enquiry. We apologise for the late reply.
We are trying to contact the owner of the Hotel in question to see if he is interested in renting.
Please let us have your criteria, number of beds etc. with your maximum renting budget.
Thank you.
We look forward to hearing from you.
Kind regards
Thorwald Bodensiek
From: serraniaservices
to : terry -
the:
16-05-2014 - 11h02 ref 100131 Gracias por su solicitud. La propiedad ref 100131 tambien esta en venta.
Por favor confirma sus criterios para comprar y avisenos su telefono de contacto.
cordialmente
Irene Ortiz
From: serraniaservices
to : terry -
the:
16-05-2014 - 11h00 Ref 100283A - La propiedad tambien se encuentra en venta.
Por favor evienos su numero de contacto de telefono.
Cordialmente
Thorwald Bodensiek
La Serrania Services, Inmobiliaria Real Estate
ronda
From: serraniaservices
to : infovivalavidalifestylecom -
the:
09-03-2014 - 11h49 Alquiler con opcion de compra Estimada Marie,
Gracias por contactarnos, tenemos varias propiedades que podrian alquilarse con opcion a compra.
Me puedes indicar que tipo de propiedad estas interesada?
Un saludo
Thorwald
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