Hi I live in the UK for over 11 years and my father lives in Fuerteventura also over 10 years and is full taxable under Spanish law. I have 0 assets in Spain and my father has 0 assets in Britain. Both of us never lived in the other country.
Since my father is getting older he wants to give me a familiy company in Germany, a nursing home as a gift.
All seems settled re inheritance tax in Germany, Spain and UK etc. Then he went to a Spanish Lawyer that told him that the foreign company would fall under the plus valia at 16%.
All the webpages on the topic talk about Spanish property and local communities, tables etc..
1.) Is it true that also foreign COMPANIES fall under this tax?
2.) Why 16%? The values seem to talk about something around 3% yearly?
Although he will go to one of these international lawyers, I am trying to get an angle on this.
The plus valia tax you mention is the equivalent of an English tax called CAPITAL GAINS TAX. That is because the value of the investment - in your case the nursing home in Germany that belongs to your father that he intends to give you as a gift - has risen in value from the time that he bought it to the current value on which it is assessed. It is this difference in price that you pay tax on - ie this 16%.
Please note that family gifts are subject, certainly in the UK and also in France where I live, to a fixed amount. They cannot be unlimited in value. EITHER you can gift a sum to a child as an amount every year for seven years (or so it used to be) up to a maximum sum OR you can gift a sum as a one-off lifetime amount, which cannot be added to in the future. There was a time when the yearly sum was £3000 and the lifetime gift was £20000. Up to these limits the gifts were tax free. Over these limits - you will need to check the exact amounts these days with the Tax Office - tax was payable.
As I said, I think that the tax you (or he) will be liable is CAPITAL GAINS TAX and this applies all over the world, but the amounts involved and the rate of tax will vary country by country. You will need to find out in which country the tax is liable and to where it has to be paid. Please take professional advice. I am NOT a professional, but I hope that this post will help you to find out the legal and correct details also the procedure for receiving his very generous gift.
Please note that family gifts are subject, certainly in the UK and also in France where I live, to a fixed amount. They cannot be unlimited in value. EITHER you can gift a sum to a child as an amount every year for seven years (or so it used to be) up to a maximum sum OR you can gift a sum as a one-off lifetime amount, which cannot be added to in the future. There was a time when the yearly sum was £3000 and the lifetime gift was £20000. Up to these limits the gifts were tax free. Over these limits - you will need to check the exact amounts these days with the Tax Office - tax was payable.
As I said, I think that the tax you (or he) will be liable is CAPITAL GAINS TAX and this applies all over the world, but the amounts involved and the rate of tax will vary country by country. You will need to find out in which country the tax is liable and to where it has to be paid. Please take professional advice. I am NOT a professional, but I hope that this post will help you to find out the legal and correct details also the procedure for receiving his very generous gift.
Hiya thanks! 
Yes we will take professional advice but since this is a 3 State matter it's complicated to find one. We have a shortlist, but I wanted to get an angle.
It seems there is a CGT exemption or transference into the next generation in Spain.
w w w. homesoverseas. co. uk/ articles /Spain_-_Capital_Gains_Tax/5117-1002
For family companies (and the definitions are very tight), it is possible to pass the asset to the next generation without paying capital gains tax, but it is simply deferred (or rolled-over) into the cost base of the next generations.
I have yet to find out the exact law and the terms though .. and if it then applies over State borders and if EU laws have any impact on this.
Yes we will take professional advice but since this is a 3 State matter it's complicated to find one. We have a shortlist, but I wanted to get an angle.
It seems there is a CGT exemption or transference into the next generation in Spain.
w w w. homesoverseas. co. uk/ articles /Spain_-_Capital_Gains_Tax/5117-1002
For family companies (and the definitions are very tight), it is possible to pass the asset to the next generation without paying capital gains tax, but it is simply deferred (or rolled-over) into the cost base of the next generations.
I have yet to find out the exact law and the terms though .. and if it then applies over State borders and if EU laws have any impact on this.
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