Inheritance Tax, IHT
Hundreds of firms are helping British citizens escape the Spanish inheritance tax by forming a UK Company.
A legion of tax advisors, lawyers and property consultants advise British landlords of properties in Spain form a UK Limited Liability company. They then transfer the ownership of the property passes into the hands of the company. In Spain the individuals who inherit are the ones taxed, not the estate of the deceased.
When the shareholder/s of the company pass away, the company is reorganised. Transfering some company shares falls outside the Spanish inheritance tax.
Many British retired in Spain evade taxes by purchasing a property in Gibraltar, usually a small flat in order to declare tax-residency in the colony turned into a tax heaven. This trick allow them to pay a nominal amount of tax and live up to half a year in their houses in Spain free of taxes on their income, including their pensions.