BRIEF EXPLANATION ON DIFFERENT WAYS TO BUY THE PROPERTY
PRICE OF ACQUISITION:827.000 EUR / VAT : 82.700 EUR (10% on the price – it’s a NEW building)
A+B are a married couple with two sons «I» and «II».
A+B want to buy a NEW BUILDING in Malaga, and, before buying, they consult our company in order to check the eventual inheritance results in the future .
SCENARIO 1.- A+B BUY PROPERTY 100 %
«A» has the 50 % of the property = 413.500 EUR
«B» has the 50 % of the property = 413.500 EUR
– «A» dies, so , the value of the «A» part (413.500 EUR) is passed in equal parts to «B» + I + II :
«B» receives: 137.833 EUR. In inheritance 137.833 – 100.000 EUR (reduction bonus) = 37.833 EUR. ===> This amount pays : 4.000 EUR in taxes
«I» receives: 137.833 EUR. In inheritance 137.833 – 100.000 EUR (reduction bonus) = 37.833 EUR. ===> This amount pays : 4.000 EUR in taxes
«I» receives: 137.833 EUR. In inheritance 137.833 – 100.000 EUR (reduction bonus) = 37.833 EUR. ===> This amount pays : 4.000 EUR in taxes
TOTAL Inheritance tax paid on «A» inheritance: 12.000 EUR
– When «B» dies, then, part of «B» (413.500 EUR) + the part received from «A» (137.833 EUR), makes a total of 551.333 EUR. This amount will be inherited by I + II in equal parts:
«I» receives: 137.833 EUR. In inheritance 275.666 – 100.000 EUR (reduction bonus) = 175.666 EUR. ===> This amount pays : 26.000 EUR in taxes
«I» receives: 137.833 EUR. In inheritance 275.666 – 100.000 EUR (reduction bonus) = 175.666EUR. ===> This amount pays : 26.000 EUR in taxes
TOTAL Inheritance tax paid on «B» inheritance: 52.000 EUR
TOTAL «A» INHERITANCE TAX + «B» INHERITANCE TAX = 64.000 EUR
SCENARIO 2.- “A” + “B” BUY THE USUFRUCT and “I” + “II” BUY THE BARE OWNERSHIP
A+B VALUE OF THE USUFRUCT:(28 %) = 231.560 EUR / VAT: 23.156 EUR
I + II SONS (72 % ) = 595.440 EUR /VAT: 59.544 EUR
– A+B DIES, AND PASS THE USUFRUCT IN INHERITANCE TO SONS (231.560 EUR) in equal parts (probably less than that because the usufruct value is reduced 1 % per year)
«I» receives: 115.780EUR. In inheritance 115.780 – 100.000 EUR (reduction bonus) = 15.780 EUR. ===> This amount pays : 1.200 EUR in taxes
«II» receives: 115.780EUR. In inheritance 115.780 – 100.000 EUR (reduction bonus) = 15.780 EUR. ===> This amount pays : 1.200 EUR in taxes
TOTAL Inheritance tax paid on «A+B» inheritance: 2.400 EUR
I+II have to pay the VAT not paid when they bought: 23.156 EUR
TOTAL INHERITANCE + VAT = 2.400 + 23.156 = 25.556 EUR
SCENARIO 3.- “A” + “B” BUY IN EQUAL PARTS:
A+B BUYS (28 %) = 231.560 EUR / VAT: 23.156 EUR
I + II SONS (72 % ) = 595.440 EUR /VAT: 59.544 EUR
A+B DIES:
«I» receives: 115.780EUR. In inheritance 115.780 – 100.000 EUR (reduction bonus) = 15.780 EUR. ===> This amount pays : 1.200 EUR in taxes
«II» receives: 115.780EUR. In inheritance 115.780 – 100.000 EUR (reduction bonus) = 15.780 EUR. ===> This amount pays : 1.200 EUR in taxes
IMPORTANT NOTE: I+II have NOT to pay the VAT not paid when they bought: 0 EUR
TOTAL INHERITANCE + VAT = 2.400 + 0 = 2.400 EUR
