Cross-generational succession UK-Spain-Colombia: the post-non-dom redesign

The new map

The abolition of the UK non-dom regime rewrote the succession calculus for Colombian families with members in London and Madrid. Having an offshore trust "settled" before acquiring domicile is no longer enough: the Long-Term Resident test (10 of the last 20 years) now determines exposure to the 40% Inheritance Tax (IHT) on worldwide wealth.

The triple layer

United Kingdom

• IHT 40% on worldwide assets if the decedent is Long-Term Resident.
• Tail provision: up to 10 years of "shadow" after ceasing residence.
• Excluded property trusts protected only if settled before the status change.

Spain

• Autonomous ISD (Madrid: 99% bonus; Catalonia: up to 32%).
• Applies to resident heirs OR over Spanish-situs assets.
• Beckham regime does not exempt ISD on successions.

Colombia

• Occasional gains tax 15% (proposed 30% under 2026 reform).
• Applies to fiscally resident heirs on worldwide inherited wealth.
• Spain and UAE treaties may partially mitigate.

Double taxation risk

A Colombian entrepreneur with UK tax domicile passing away with children in Madrid and Bogota potentially faces:

• 40% UK IHT on the total.
• 30% occasional gains Colombia for the resident heir.
• Residual ISD in Spain depending on the autonomous community.

The effective stack can exceed 60% without prior structuring.

Recommended structuring

1. ADGM Foundation or Jersey Trust established before acquiring UK Long-Term Resident status.
2. Distributions structured as loans or capital, not as income.
3. Rigorous documentation of fund source and constitution date.
4. Biennial review of each family member's status.