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TAX PLANNING FOR MOVING TO SPAIN...Or For Those Already Resident Here | Pellicer & Heredia
Oct 29, 2024
Following the inevitable conversation about the Spain v England Euro 2024 final, Ignacio and Pedro from @Pellicerheredia spoke to Kal about the importance of tax planning and how it can save you money and headaches later on.
This is especially important for those looking to move to Spain and who are currently paying taxes in another country.
You can see more about Spanish tax residency at www.alicantelawyers.es, where you can also watch back some of the previous webinars.
Be sure to Like đź‘Ť this and Subscribe to our channel if you found it useful.
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0:00
Bay radio International and it's
0:02
Wednesday which means that we catch up
0:04
with our alante lawyers pay there and
0:06
Heredia ignatio and Pedro with us in the
0:08
studio today I'm very very happy about
0:11
the football at the weekend of course
0:12
big football fans how's it going guys
0:15
yeah good afternoon what of is you enjoy
0:16
that enjoy that on Sunday yeah we were
0:20
very happy were you in any doubt did you
0:23
doubt at all that yeah obviously I mean
0:24
it was a great game it was a second half
0:27
fantastic and anyone could win really at
0:29
the end yeah at the end both of them had
0:31
the possibilities and yeah you never
0:33
know you never know you never know it
0:34
was a good game it's easy from your
0:38
side but the best team won the
0:40
tournament I have to say yeah we we I
0:43
mean I think we won like seven games at
0:45
the end against Italy France Germany you
0:49
went through the hard side of the group
0:52
that's right yeah and we have a good a
0:54
good team you know young people and many
0:57
of them are very young yeah many of them
0:59
are very young amazing
1:01
substitutes and Danny Almo is available
1:04
apparently so we know any chance we
1:06
might see him playing at ules anytime
1:08
soon perhaps you know I mean we well
1:11
that would be fantastic but Daniel Mora
1:12
is like a heroine in Spain yeah he's
1:14
going to go for big money and he going
1:16
to be one of the top three or four teams
1:17
right I think yeah excellent right we've
1:21
been talking about taxes the tax
1:23
planning and so on has been what we've
1:25
been focusing on over the last sort of
1:27
couple of months where is that now is
1:29
everybody everything's in in and you
1:30
should all be getting your rebates by
1:32
now shouldn't we well actually we know
1:33
that we know The Moody
1:36
go well actually uh yeah I mean we we we
1:39
wear a stress all these three months in
1:41
a row because it's very stressful uh a
1:44
lot of paperwork a lot of paperwork a
1:46
lot of information people trying to
1:48
understand their own files their own you
1:51
know uh information assets information
1:55
uh but yes we made it we made it
1:56
sucessfully we made it it was it was a
1:58
challenge because
2:00
we've got a lot of people and everybody
2:03
needs to understand and we need to
2:04
squeeze the appointments and to Feit you
2:07
in and clients need to understand it and
2:10
uh and yeah the end we we I mean we
2:12
don't like just to make some dra
2:14
document and give it to the client and
2:16
sign you have to pay ,000 and we don't
2:18
like that we like like to check all
2:20
documents like like personal like hand
2:22
to hand and say check what we are doing
2:24
cheb the client is saying and at the end
2:27
we with that we are more effective we
2:28
are very accurate on that we arew what
2:30
we do and obviously at the end is more
2:32
effective to the client but obviously we
2:34
need to more time yeah you have a lot of
2:36
foreign clients of course a Minefield
2:38
anyway the Spanish tax system even if
2:40
you're Spanish right yeah well even if
2:42
you're Spanish is fine uh but with the
2:46
international clients you need to
2:47
understand very much their income uh
2:49
their situation their dual taxation
2:52
treaties uh so he a very accurate
2:54
exercise I wouldn't recommend just as
2:56
Pedro said just sign and go well some
2:58
people if it's straightforward forward
3:00
you could do that on a video conference
3:02
or just not really needed an appointment
3:04
but in general terms uh we prefer always
3:07
appointment personal appointment so you
3:09
are accurate well I mean I mean I mean
3:11
yes to check documents perfectly being
3:14
accurate on for example we have a
3:16
American clients over from UK I mean all
3:19
these finance and products that they get
3:20
some interest dividends or some withdraw
3:22
from some accounts that they have done
3:25
all that I mean know to transmit into an
3:27
income declaration obviously we need to
3:30
do correctly and we exchange and
3:32
everything yeah your worldwide income
3:33
has to be declared does yes that's right
3:36
okay correct um yeah so so what happens
3:39
do they come along and check afterwards
3:40
the tax office is that what they do I
3:44
always say try to every time we have the
3:46
appointment I always try to inform
3:49
clients to be prepared for an inspection
3:50
because you never know at least you need
3:52
to keep everything up to four years cuz
3:54
you never know whether they're going to
3:55
knock on the door and they're going to
3:57
say could you please double check and
3:58
show me the evidence
4:00
about why you're declaring this and
4:04
sometimes the tax office already me yes
4:06
has already contact the the country of
4:09
in this case UK for example do and and
4:11
the UK the per tax off Spain and Spain
4:13
says oh we have this information for you
4:15
you made this declaration and these are
4:17
contradiction on this yeah because in
4:19
the UK goes from one I think it's April
4:22
to April isn't it yeah and here it goes
4:24
from January to December so sometimes
4:27
even tax office gets confused about the
4:30
figures because of different calendar
4:32
years I mean we
4:33
us and uh but yes uh tax offers um in
4:39
general if you will ask Nora secretary
4:41
she's the one who gets all the letters
4:42
from the tax man and the postman goes
4:45
there and pretty much he was telling me
4:46
that he sits by her handing hundreds of
4:50
of of letters uh asking for information
4:55
and uh but you never know here car I
4:58
mean you could get an inspection
5:00
um anytime I was going to ask how long
5:03
does that go on for it depends on
5:05
clients if you provide the paperwork to
5:07
prove it probably they will close the
5:08
file and it could take probably only six
5:10
months it could be very fast obviously
5:12
some of them are in in not in Spanish or
5:14
in English or the language we need to
5:16
translate things needs to be a little
5:18
bit more but could be very fast in order
5:20
to show what you are declaring really
5:23
because whenever you declare your income
5:25
tax declaration you do not provide
5:27
documents at all you just make a
5:28
declaration you say my income is this my
5:30
salary or my I get some this for my
5:32
pension I get this for my interest but
5:34
you don't show you don't bring any
5:36
document you just declare what you
5:38
understand you are getting as an income
5:40
it's self assessment whether the tax man
5:42
believes what you said it's self
5:45
assessment you know and at the end of
5:46
the day that's what we always say to
5:48
clients this is self assessment uh we we
5:51
are supposed to to to to tell them what
5:55
it is but we don't need that uh to
5:58
attach it to your
6:00
uh compant form you know okay it's just
6:02
the form that goes in with no evidence
6:05
so but you need to make sure but that's
6:06
why it's very important you need to make
6:08
sure that if in case they do questions
6:11
you have everything ready we need to be
6:12
pretty sure that what the information is
6:14
given to us is accurated perfectly we
6:17
say to the clients obviously that uh to
6:19
sign a document that the documents the
6:20
information they give to us is correct
6:22
MH yeah it's pretty much like a letter
6:25
of consent they authorize us to do it
6:27
but they they are declaring that all
6:29
these information is correct cuz we will
6:31
not remember so much information from
6:35
clients and it is important that they're
6:37
really aware that this could happen I
6:40
mean then you've got your own taxes to
6:42
you and the companies as well on top of
6:43
that I mean it's and we always have all
6:46
these nice letters from tax office I bet
6:49
you know they try and catch you they try
6:51
they try
6:53
hard I understand that you're pretty
6:55
successful in your uh in your dealings
6:58
with the with with the authorities on
7:00
certain subjects yeah there is always
7:02
something isn't it I bet so when do we
7:05
need to think about and worry about our
7:06
tax is that it now we don't have to
7:07
think about it for a while is or is
7:09
there more on the way to do tax planning
7:11
that's right you you could plan ahead
7:13
you do actually B yest they have an
7:15
appointment with a client they say well
7:17
what where are we right now I mean
7:18
obviously we inform okay next year you
7:21
ATT tax this year because last year he
7:23
didn't uh he was not tax season back
7:25
next year he will have to obviously to
7:28
declare that 7 20 when you have uh
7:31
assets more than 50,000 abroad and then
7:34
you will have to make the tax return for
7:36
May and June but in order to know what
7:38
you're going to pay in May June next
7:39
year about your income in 2024 you need
7:42
to
7:43
know it's good that that make it tax
7:45
planning because for example November
7:47
October November what if you want to
7:48
withdraw some money because you want to
7:50
make some works in your house what if
7:51
you want to sell your property and B buy
7:53
another one uh next year well those
7:56
things is good to do it this year to
7:58
prevent what is going to happen next
7:59
year or to to know what he going to pay
8:02
or maybe not to do it maybe to do it in
8:03
a different way so you need to think 12
8:05
months ahead generally exactly about
8:07
well we're still on time to think about
8:08
next year before 31st of December
8:10
because if you if you realize we are
8:13
just in July so that's another good
8:15
point to say for those who spend more
8:17
than six months here if they didn't
8:19
spend six months they could still turn
8:20
out into a non-resident if they want so
8:23
there is a lot of Financial and tax
8:25
decision because you have full control
8:27
of your assets and and situation
8:30
and but I always say the best thing you
8:32
could do is do tax planning if you want
8:34
to know a possible and also double
8:36
taxation Tre this is an example uh when
8:38
you become ring in Spain but you maybe
8:40
that year this first year you are maybe
8:42
tax R here in both countries this
8:44
happens a lot in the first year the
8:46
first year it happens a lot you are tax
8:48
and you fulfill the requirements in the
8:50
UK or in other a different country and
8:51
in Spain and then there the rule
8:54
normally in double taxation treaties is
8:56
okay well whatever you have a uh
8:58
available property in order that to live
9:00
okay what if you have properties in both
9:02
countries well then we have a Vital
9:04
Center of your economic Center and then
9:07
what is that then the concept of how do
9:08
we argue on interpretate in case there
9:11
is an inspection in the future it is
9:13
that I think when you first move here
9:14
where you could actually be selling a
9:15
property in your home country buying one
9:19
in Spain and then that sort of crossover
9:21
year wherever it happens that's a lot to
9:24
to take in that's another perfect
9:26
example and when you sell is your
9:28
permanent har in country you be living
9:30
there more than three years then you
9:32
sell you buy another one you reduce
9:35
obviously the capital gain St in case
9:36
that well that's the issues that
9:38
obviously we inform to tax planning to
9:40
prevent that I I think you save a lot of
9:42
money during these things exercise I
9:44
mean I I remember and I'm happy on the
9:47
on the appointments when you see how
9:49
much value you give to clients doing one
9:53
way or the other you know we talking
9:55
about thousands of Euros with the right
9:57
direction
9:59
yeah because it's not the same to do in
10:01
the with the wrong food uh rather than
10:04
you putting yourself into the right
10:06
picture yeah and clients that can't well
10:08
tax you Val is a well tax still well tax
10:11
maybe it's going to be eliminated well
10:12
we understand it's going to be
10:13
eliminated for next year but then we
10:15
also have a solidarity tax which is is
10:17
or individually more than from 3.7
10:20
million EUR so when someone some some
10:24
there clients that have some kind of
10:27
assets but then we ask about your for
10:29
marriage economic agreement and say well
10:32
is oh we are like communal like all of
10:35
the assets out together so maybe they
10:38
have both together four million EUR and
10:40
then they realize that they do not cross
10:41
the line you know the solid tax and that
10:44
appointment that a very a one hour
10:46
appointment just a
10:47
consultation um gives them possibility
10:49
to say okay now I can move to Valencia
10:51
area because before that I think Antonio
10:54
mentioned this that it's different for
10:56
Spain than it might be in other
10:58
countries say for the UK
10:59
with a married couple and taxes and
11:02
ownership is can be a different could be
11:04
a different that's right is it is this
11:07
is oh I mean in Spain we have a two
11:09
different kind of regimes it's like SE
11:12
which is like asset whenever you buy a
11:14
an asset property whoever is your own
11:16
asset but if it's in a marriage
11:18
agreement in terms of everything what
11:20
you buy with him you acquire is common
11:23
then is communal whatever you acquire
11:25
before your marriage is private and then
11:27
whatever your inheritance is private
11:28
this is not the same in the UK different
11:31
so obviously you need to understand both
11:33
um systems in order to understand what
11:35
if that asset specifically is communal
11:38
from the marriage or is asset a private
11:41
asset from each individual one why you
11:43
need experts absolutely and the webinar
11:46
coming up in a little while guys on
11:48
estate planning inheritance taxes and
11:51
and Wills today you've been talking
11:53
about the sorts of money that people can
11:55
save if they do things correctly just
11:57
give an an example of perhaps What could
11:59
you could
12:00
save well it is yes I mean we we
12:03
normally recommend obviously to we
12:05
talking about explaining in order to uh
12:07
make some simulations on on uh play
12:11
really with numbers play with product
12:12
play with income obviously with those
12:14
ones that can do that I there are some
12:16
of them they have some income that is
12:17
fixed income this is not going to change
12:19
anything or this is what it is but in
12:21
many many occasions we are able to in
12:24
know to be flexible to get income from
12:27
to someone withraw some money on some so
12:29
we can in some way expect what is going
12:32
to be paying in case that they do this
12:34
thing or scenario a scenario B scenario
12:36
C for example okay so and obviously we
12:39
recommend which is is the scenario then
12:41
we recommend maybe it's another scenario
12:42
that hasn't been thought about that
12:45
different way obviously all the people
12:46
has own needs and life and obviously
12:49
needs to be adapted why it's needed but
12:51
in some ways tax planing them could be
12:53
savings that we have many examples
12:55
hundreds of Euros or thousands of Euros
12:57
depending how usually the income but we
12:59
do that a lot we make simulations about
13:02
not just income tax also inheritance tax
13:05
yeah when someone wants to become resing
13:07
what would be my inheritance my
13:09
beneficiaries or what about making a
13:11
gift or what about if I'm a resident or
13:14
this is what we talking about yeah this
13:16
is part of the whole estate planning
13:17
isn't it because a will isn't actually
13:19
legal you don't have to have a will in
13:21
Spain do you obviously it's recommended
13:22
that you do it's not compulsory not
13:24
compuls no it's not compuls really it's
13:26
a good idea but it's highly recommended
13:27
because you are protecting your
13:29
beneficiaries and and your well
13:32
everything the way you want to do things
13:34
for example it's not the same you live
13:37
it to your husband or wife or or husband
13:40
wife and children or that's group one
13:43
which to be honest this is great
13:45
nowadays in the Valencia region the
13:47
Valencia region they have already now
13:48
cancelled that inheritance tax for the
13:50
first line yeah that's pretty much yeah
13:52
uh you have a big allowance plus you
13:54
have 99% reduction on whatever tax you
13:56
need to pay so that's excellent but if
13:59
if you want to live it to a friend of
14:00
yours to your neighbor which I've I've
14:02
been dealing with this inheritance I I
14:04
have no family I live it to my neighbor
14:06
so obviously is a high tax but if you do
14:09
tax planning as as we were discussing
14:11
with the income tax return is exactly
14:13
the same that with inheritance tax or
14:15
with estate planning first you need a
14:17
will I mean to to that's the title that
14:21
will give the distribution of assets for
14:24
the executive to enforce it or to be
14:28
enforced and then second is the tax so
14:31
there is a way for you to control it and
14:33
and you could do taxx scenarios you
14:35
could say how about if we do it this way
14:37
or how about if we do it that way uh and
14:40
know the laws we could only talk about
14:42
what the law is today of course
14:45
sometimes the Law changes yeah and
14:46
unfortunately sometimes it's not always
14:48
to the benefit of us not like the last
14:50
one that it was but yeah because uh you
14:53
know in and Delia uh well all the
14:56
regions had ups and downs uh we had had
14:59
this regime long time ago that they
15:01
changed it and it was very expensive to
15:04
to say to pass away here in this region
15:07
it was more
15:08
expensive uh then they've changed it
15:10
again um Madrid and theia I think Val
15:14
aric as well and these area are very
15:17
efficient for GR one tend to which
15:19
government is in charge in the
15:22
regional Politics the ones who watch ch
15:24
right now is the part which is the pp
15:27
party MH um the government of espain is
15:30
in p ps OE Y and they are like all dput
15:34
there is always fighting always fighting
15:38
and and uh I mean I think one wants to
15:41
reduce apparently a bit more taxes
15:44
apparently because you they they never
15:46
reduce it enough generally it's the one
15:48
that's not in power is the one that's
15:49
promising to reduce I guess in any
15:52
politic situation in anywhere around the
15:55
world um but it's very important I think
15:57
for people to start thinking about this
15:59
before they become ill or before
16:00
something happens suddenly isn't it you
16:02
got you really need to look at the the
16:04
whole estate planning whilst you're
16:05
still healthy yeah and plus plus power
16:09
of attorney as well so I always think is
16:11
as you said it's not compulsory but it's
16:13
good to have power of attorney to have a
16:15
will and to do tax planning I think
16:18
that's very efficient and probably is
16:20
because of our experience and and Age
16:22
and and seeing so many things every time
16:25
I try to spend more time discussing
16:28
things with cents because I I try to
16:31
wear the shoes that we will be us the
16:34
executives sorting it out in the future
16:38
and and trying to avoid any possible
16:40
problems that will be count so what are
16:41
the sort of problems that you've come up
16:43
against for instance well one one of the
16:44
things I would not recommend PR is to
16:47
live inheritance to a lot a lot of
16:49
people especially if they're not legal
16:52
age uh it could give a lot of nighta
16:54
it's It's better more a legacy for the
16:56
executive to pay and do bank transfer
16:59
rather than saying that was one that I
17:01
struggle a lot uh it was nine people
17:04
involved probably seven
17:08
grandchildren so you need a lot of
17:10
patern that's normal though people want
17:12
to leave something to all of their their
17:14
their family so it's quite a difficult
17:17
thing to do in Spain well if you
17:18
transfer money is okay but if you need
17:20
to inherit put the property in their
17:22
name you need an ni number you need a
17:24
power Atty they need an ni and then they
17:26
need to sell to sell we need an David of
17:29
laws that they could the parents of the
17:33
children could sell so is I mean I'm not
17:35
saying is not possible it's possible
17:38
that this is why you need the planning
17:40
to get everything if you really want to
17:42
do that you need to face all these and
17:43
if it's worth it for you just know that
17:45
these
17:46
inheritance uh will not be
17:48
straightforward I mean we've achieved
17:50
that we've done it and it went perfect
17:53
but the the path is being pretty
17:56
difficult for them for as it's just work
17:58
but for them to go through so much
18:00
stress time de if you're dealing in a
18:03
situation where somebody's passed away
18:05
as well that you've already got that
18:07
you're dealing with all of that there's
18:08
the funeral there's issues with the bank
18:10
always and all kinds of other things
18:12
going on so you if you can get as much
18:14
sorted out before that happen the better
18:17
and information we I mean we know and
18:19
they say statistics in Spain that there
18:22
is a lot of money that is uh it never
18:25
goes to beneficiaries because the
18:27
beneficiaries do not know where they are
18:28
yeah do not even know they exist yeah so
18:31
we a lot a lot of money a lot of
18:32
millions of Euros so it's just sat there
18:34
because the people you can't find the
18:37
people who it's meant to go to well not
18:39
the people it's just the assets I mean
18:40
imagine that you have a bank account in
18:42
Bank of America the benefici do not know
18:44
and we don't know so we'll never be
18:46
given to the beneficiaries and the bank
18:48
will never know we just hide and we say
18:50
no now everybody looks after their own
18:52
interest so at the end we we obviously
18:54
to our clients who are clients that
18:56
every year with us obviously we tell
18:58
them and obviously when May m will uh we
19:00
make a tax planning on inheritance we
19:01
say give us a list of where the assets
19:03
are so when so we will for sure we will
19:06
now where they are and we obviously a
19:08
bank in Japan or something in what is in
19:11
I see what you're saying I can
19:12
understand the complications yeah yeah
19:14
if nobody knows if no beneficiaries
19:16
knows about I we always say that and
19:19
actually we're trying to upload it in
19:20
their file nothing official because it
19:23
could change tomorrow but if the
19:25
beneficiaries don't know anything about
19:26
the assets if we don't know the assets
19:29
who gets that yeah remember we had like
19:30
a client it's a house in here in marinal
19:33
I will not say the municipality but uh
19:36
some AG has a keys but the property was
19:38
closed and we didn't know absolutely
19:41
anything we knew that was a beneficiary
19:43
outside of Spain uh we didn't know so we
19:45
we had to look for back and everything
19:47
obviously we go to the post box and we
19:49
just take all the letters that were
19:50
there but we don't know if something
19:52
else left somewhere the I'm sure he will
19:55
be I'm sure it'll be money in the bank
19:57
the bank will never say anything think
19:58
CU will not contact the beneficiaries
20:01
that I haven't seen that case happening
20:03
uh properties aboad who knows if nobody
20:06
contact so important to make a will
20:08
obvious it's not compuls it's not
20:09
obligation but the client the
20:10
beneficiaries to know who are the
20:12
executors copy the will um where I mean
20:16
mainly obviously or the executor or
20:17
maybe some beneficiaries asset where
20:19
they are I mean things you know that all
20:21
the information to be sure that at the
20:23
end the path that you have create or
20:25
agreed a will or what you want it will
20:27
happen at the end M and and another
20:29
important thing sometimes yeah doing the
20:33
planning allows you to control the way
20:35
you want and the executor if if he's the
20:37
lawyer could tell you what they think
20:40
about that possible a scenario because
20:41
everything is possible but what to what
20:43
extent what's the best legal and most
20:46
cost effective way as well I guess I I
20:49
remember uh that inheritance I remember
20:53
these these uh um Peter telling me naew
20:57
this is what I want and we accept it and
20:59
that was fine but later on the wife said
21:01
I wish we never did this way well that
21:04
was his wishes wasn't it so but the
21:07
stress you need to go
21:08
through um and then as Pedro said where
21:11
is the money how many things he had uh
21:15
does anybody know well people don't know
21:18
and and the banks
21:19
just to a certain level they just block
21:22
the account and they keep the money yeah
21:25
I mean until somebody claims until
21:27
somebody claims in Spain obviously this
21:29
is something that um it's it's passed
21:30
around regularly between people or you
21:32
know um if somebody passes away they'll
21:34
close the account even if it's a joint
21:36
account I mean what's the what's the
21:37
protocol there what are you meant to do
21:39
what are we meant to do in that scenario
21:41
yeah well uh when we say I'm me to our
21:44
away obviously the direct debits are
21:45
going to go through anyway carry on no
21:47
problem with that the direct debits
21:48
obviously if you need to leave on to buy
21:51
a supermarket on that it's going to be a
21:53
problem so just go through that
21:54
situation as as you are living normally
21:57
but whenever they acceptance of
21:59
inheritance is going to be done
21:59
obviously need to inform the bank in
22:01
order to say well then everything goes
22:04
through get a certification about the
22:06
day that the disas died and and at the
22:09
end get all the information in to BR
22:11
bring it to the accept on inheritance
22:13
and a notary in order to unblock the
22:16
situation right so I was going to say
22:18
because that so you still have to go
22:19
through all the process the account
22:21
might be blocked eventually um I
22:23
wouldn't I wouldn't tell the bank
22:24
straight away if because that was what I
22:26
was that's what I wanted to know yeah
22:28
because you I mean they will block % the
22:30
beginning they will block at least 50%
22:33
of the account and probably you need
22:34
that money and and it's very clear that
22:36
it's husband to wife wife to husband so
22:39
the bank is training a away to create a
22:41
protocol to protect the beneficiaries
22:43
that's the real game I mean the real aim
22:45
of the the bank but the bottom line is
22:47
they make their life more difficult
22:49
because if you don't but if you can't
22:50
pay the mortgage correct you know the
22:52
morgage going to be that is going to
22:54
happen on a direct deit direct like
22:56
electricity water he like
22:59
that it will be paid anyway okay so
23:01
we're more of the opinion to declare
23:03
that situations ones we're going to
23:04
complete on the provate the day be I
23:06
mean the week before so we could get the
23:08
certificate and attach it to it but not
23:11
the very beginning because if it if it
23:13
makes your life more difficult because
23:15
youve running out of money and the money
23:16
is going to be yours anyway obviously
23:17
we're talking about situations where
23:19
it's not fraud I mean of course in terms
23:21
of you're not going to go who Bas in the
23:24
account is the one who is a beneficiary
23:26
correct correct I mean obviously if he
23:27
were someone is not beneficial right it
23:29
is in the account we will never
23:31
recommend to do that course but I was
23:33
wondering about that situation where
23:34
like okay I guess once you've kind of
23:36
got things together and you've been to
23:37
the notary you've got the paperwork
23:39
that's when you go to the bank right
23:41
well one week before we prepare the
23:42
paperwork from the bank yeah excellent
23:44
so before completion is whenever you're
23:47
ready to just because once you disclose
23:50
that information they will block it so
23:51
you need to be prepared for it once once
23:54
we we get obviously the death
23:55
certificate and um uh um ultimate volunt
23:59
which is a certification that says that
24:01
if you sign a will or not in which
24:02
notary and then we have a copy of a will
24:04
made in a notary so they're all in
24:07
Madrid we know we know specifically this
24:09
is the will this is the date this was
24:11
signed this is the latest declaration by
24:14
the the stator so we know that that will
24:16
you are the beneficiary or whoever it is
24:18
the beneficiary with the applicable law
24:19
Spanish or English whatever and then we
24:21
will now perfectly about that because
24:23
the banks obviously is a it's a
24:24
situation that make some struggle it's
24:27
protecting itself
24:28
you being very nice and saying that
24:30
they're looking after the beneficiaries
24:31
but I think they're looking after
24:33
themselves and and and you know and we
24:35
know cuz it happens quite quite often
24:37
you know where people suddenly find wow
24:38
what am I going to do you know and and
24:40
one partner has passed away so again
24:43
it's back to the planning isn't it
24:45
correct get everything in place whilst
24:47
you're still compos mous before you know
24:50
you start to get ill or anything else it
24:51
just makes sense to have that will ready
24:53
and uh like you said uh there are a few
24:55
other things that you can do uh to make
24:57
sure like par of attorney for instance
24:59
and things like that um so that things
25:01
go straight forward should something
25:03
happen to you and uh yeah don't tell the
25:05
bank until you've spoken to your lawyer
25:07
yeah that that will be the bottom line
25:09
speak to your lawyer first yeah because
25:11
because at the end of the day even
25:13
though they're trying to protect that
25:15
way the bottom line is that you could go
25:17
into a situation and you're going to be
25:20
anyway the beneficiary so normally is
25:23
husband to wife wife to husband so um so
25:27
I I think I think it's
25:28
quite important um I imagine the problem
25:32
with the Spanish tax system Spanish
25:33
system because uh we two3 of our assets
25:36
goes to our children I see and so all
25:39
the money you have in account that's
25:41
where you were talking about you're
25:42
going to the beneficiary so they're
25:43
protecting the beneficiaries I
25:44
understand that now Spanish tax one the
25:46
applicable is Spanish so this is why we
25:48
recommend in the in the wheelage you for
25:51
to say well my own law is applicable in
25:53
this case the English law for example
25:55
but with Spanish law two3 of my my
25:57
example I have two children 23 of my
25:59
assets goes to my children yeah so 2/3
26:01
of my bank account goes to my children
26:03
23 of my properties goes to my children
26:05
and that's something that we cannot
26:06
unblock so this is why the banks do this
26:09
it's compulsory this we cannot Spanish
26:12
people we cannot do uh unfortunately
26:15
like you guys do is leave everything to
26:18
whoever we want that's the truth we
26:20
cannot we're not allowed we are not
26:22
allowed to dispose our assets if we pass
26:26
away I mean two3 goes to our is a rule
26:30
goes to our children as Pedro say and
26:33
the other onethird you could do whatever
26:35
you like but only one third but in your
26:37
situation especially so exps for
26:40
instance expert like well not all the
26:42
experts British Americans uh
26:45
commonwealth countries freedom of
26:47
disposing assets you could leave
26:50
everything to whoever you you wish got
26:51
that will and to be a wish one day Spain
26:54
will do the same will allow us to have
26:56
free cuz in general terms
26:58
I don't see problems of that system
27:02
we've been dealing with this system so
27:04
many years more than 100 years ago and
27:06
and and I don't see years which one you
27:09
talking about the civil code code yeah
27:11
we we're ruled by the civil code um and
27:14
this is n 1890 probably rules hasn't
27:19
changed and I speak to the notaries
27:21
whether these will be changed and it
27:22
doesn't seem like that we're going to go
27:24
like you guys do like freedom of
27:27
disposal of ass
27:29
um I think I think your system is much
27:33
better because it gives more freedom to
27:35
the testate to make the decision this is
27:37
yeah if you've got the opportunity we
27:39
should plan it we've got a question um
27:41
so if a partner is going to die
27:43
imminently is it possible to change the
27:44
name on the bank uh except the partner
27:49
hang on yeah to change the name on the
27:50
bank for just the one partner well if if
27:53
the client wants to do it I mean if the
27:55
person is capable to go to the bank and
27:57
do it he could do whatever he wants to
27:59
do well if they're about to but if if
28:02
you're not with capacity to do is not
28:04
possible because unless you had already
28:07
P of
28:08
attorney given you cannot do that uh
28:12
yeah I think I think what the listener
28:13
is asking for the partner to have full
28:15
control over over the new without power
28:17
of attorney is not possible so you need
28:19
to plan that power of attorney yeah
28:21
ahead ahead if you're going regardless
28:23
if you don't have to be ill to to get
28:25
this in place you should do this this
28:27
planning there is lot of clients that
28:29
that have um Hospital appointments and
28:32
and they know something could go wrong
28:34
and they do this planning and I always
28:36
recommend patan he very
28:38
important uh especially if you're trying
28:40
to sell your property and you're in a
28:43
health condition because it could block
28:44
the sale completely mhm cuz you cannot
28:46
go to the na sign you didn't grand pa
28:49
attorney and then it's
28:50
stock it's quite normal I mean sometimes
28:53
notaries goes through hospital to send a
28:55
a wheel or to sign a off a of that has
28:57
happened yeah but as long as they are
28:59
capable to make decision understand what
29:00
they to be able understand what they're
29:02
saying which which is the case probably
29:04
that what they're asking isn't it okay
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