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