This is a great article for anyone looking to live/retire abroad, about the need for inheritance tax planning, and how important it is to take steps to mitigate any liability BEFORE leaving the UK.

“Britons dazzled by a foreign retreat in the sun could face paying inheritance tax twice if they forget to check the rules.”

“Whether it is a Spanish villa in the sun, a renovation project in rural France or an absolute bargain in some hard to pronounce place in Bulgaria the dream of owning a home overseas is now a reality for nearly 1m Britons. And this number is expected to double within the next few years.”

The key point is that a property overseas is not out of reach of the UK tax authority and is ALSO subject to local tax rules. Quite scary actually, particularly as local IHT can kick in on the death of one party, unlike in the UK where the property is automatically passed to the partner.

Follow the link below to read further, including information on ‘discretionary property trusts’ and an insight into IHT rules overseas, including Spain.

Inheritance Tax Abroad - Telegraph