Spanish Property Guide - Buying Property In Spain
Section 5: Spanish Wills & Inheritance
Making a Spanish Will
Most people are not aware that you can have more than one will. If you have bought a property in Spain there are various reasons why it makes sense to make a separate Will to cover your property and assets in Spain and then have a UK will to cover your assets back home.
As personal circumstances vary and inheritance laws are different in Spain, it is best to discuss your individual case with Diego Rubio, our in-house Spanish abogado (Spanish lawyer), who will be able to advise you on the various options.
A death in the family can be a difficult time. Anything that you can do to make things easier for your family during that difficult period has got to be worth doing – particularly if you can take the opportunity of reducing down the tax that they have to pay at the same time.
It is advisable to have a Spanish lawyer draft your Spanish Will so as to ensure that the correct wording is used and that any existing English Will is not revoked. It is also much more cost effective to make a Spanish Will than to have an English Will recognised in Spain.
A Spanish Will can be prepared and signed in your local area or in our offices. We will arrange to register your Will at the Central Wills Registry in Madrid.
If the deceased did not leave a Spanish Will there can be complications for the family:
- The English Will, if there is one, the Grant of Probate or Letters of Administration, the Death Certificate and Certificates of Law all have to be translated officially, then notarised and sent to the Foreign Office for apostilles before Probate in Spain can proceed.
- Obtaining Probate in the UK can sometimes take longer than expected. In these circumstances it is highly likely that the time limit of six months for payment of inheritance tax in Spain will be exceeded, and interest charges become due.
It normally also makes sense to revise your UK will at the same time as making your Spanish will.
If you are unfortunate enough to lose a member of your family or a partner who owns property or has assets in Spain, then we are able to assist you with the Probate procedure.
Inheritance
Spanish Inheritance Law states that when you die your property will be shared among your heirs according to the law of your country of origin. A foreigner may make a Spanish will leaving his Spanish property to the person of his choice, which must include a declaration that his own personal law is governed by the principle of free disposition of property by testament. This is then acceptable to the Central Wills Registry in Spain. Generally speaking a valid Spanish will is sufficient to dispose of the estate as you would wish.
If a foreign resident domiciled in Spain dies, the estate will be distributed according to Spanish law, and in accordance with the international personal law, unless the deceased still had some real property in the UK
Inheritance tax on any property or assets in Spain does have to be paid and any tax paid on the estate in Spain can be deducted against the UK tax thus avoiding double taxation. When a person dies the rate of inheritance tax payable depends on the relationship of the heirs to the deceased, the declared value of the estate and the heir’s pre-existing wealth.
The closest relatives are:
Husband/wife
Children & Grandchildren
Parents & Grandparents
Each heir in this group receives a tax free sum of 15,956.87 Euros.
The next group includes:
Brothers & Sisters
Uncles & Aunts
Nephews & Nieces
In-laws
Each heir in this group receives a tax free sum of 7,993.46 Euros.
Any other more distant relatives, or those who are not related to the deceased do not have any tax free allowances. Most beneficiaries will have to pay inheritance tax and after deducting the allowances the following table shows the amount payable:
Tax Base up to Euros € |
Tax Payable Euros € |
Remainder Tax Base Payable up to Euros € |
% Tax Payable |
|---|---|---|---|
0 |
0 |
7,993.46 |
7.65 |
7,993.46 |
611.50 |
7,897.45 |
8.50 |
15,980.91 |
1,290.43 |
7,897.45 |
9.35 |
23,968.36 |
2,037.26 |
7,897.45 |
10.20 |
31,955.81 |
2,851.98 |
7,897.45 |
11.05 |
39,943.26 |
3,734.59 |
7,897.45 |
11.90 |
47,930.72 |
4,685.10 |
7,897.45 |
12.75 |
55,918.17 |
5,703.50 |
7,897.45 |
13.60 |
63,905.62 |
6,789.79 |
7,897.45 |
14.45 |
71,893.07 |
7,943.98 |
7,897.45 |
15.30 |
79,880.52 |
9,166.06 |
39,877.15 |
16.15 |
119,757.67 |
15,606.22 |
39,877.15 |
18.70 |
To jump to our other sections on the topic of buying property in spain, see below:
Section 1 - Do I Need a Lawyer?
Section 2 - The Spanish Property Buying Process
Section 3 - Spanish Property - Fees & Taxes
Section 4 - Spanish Property Buying Checklist
Section 5 - Spanish Wills & Inheritance
Should you wish to discuss any Spanish Legal Services, we offer a FREE No Obligation initial telephone consultation.
Please contact:
 |
Diego Rubio Tel.: 01494 670440 Email.: drm@chebsey.com |
