Wills and Inheritance in Andalucia

One of the most common questions www.andalucia-lawyers.com, are asked by British citizens resident in Spain, and especially in south Andalucia, is about inheritance, and what steps should be taken to ensure Spanish property is easily passed on to their heirs.

The Spanish Civil Code, allows foreigners to leave Spanish assets in accordance with the national law of the country of origin. Generally, where there is a dispute, English law submits to the laws of the country in which the property is situated.

Therefore, www.andalucia-lawyers.com, advise that two wills are made: one for property in Spain and another for those in Britain or otherwise out of Spain. In order to avoid future problems, the Spanish Will should be attached to the British Will. If you do not have a Spanish Will, there will be increased bureaucracy and administration costs in dealing with the Estate as the relevant documents will need to be translated and notarised.

The Will in most cases, is a reasonably simple document reciting the persons or institutions whom you want to inherit your property in Spain. The Will is made before a Spanish Notary.

Once the testator has died, his or her heir must wait fifteen days to request the certificate that establishes which was the latest version of the Will, and therefore the valid one (when various Wills exist, it is the one with the latest date that prevails over the rest).

This certificate is obtained from the Registro de Últimas Voluntades. The certificate will state which Notary has the will on file.

Once requested, the next step is for the heirs to accept the inheritance and the distribution of the goods and chattels therein, which must be done before a Notary. Once this procedure is completed, the next step is to pay the Inheritance Tax which will vary according to the value of the properties, as well as any local taxes that maybe applicable.

After that, the document in which the Will is accepted must be presented to the Registro de la Propiedad, so that the title deeds can be changed into the name of the heirs.

If you die owning property, or have gifted it during your lifetime, Spanish succession tax will apply, regardless of your residence position. If non-resident in Spain or if you have lived in Spain for less than five years as a declared resident, the State rules will apply, and these are not generous – spouses and children are entitled to a deduction of just under €16,000 per beneficiary, and pay tax at progressive rates from 7.65% to 34% on the excess. Taxes are much higher for unrelated individuals, such as unmarried partners or stepchildren.

If you are a Spanish resident, each Autonomous Region can set its own rates and exemptions, and in some Regions, succession tax has been largely reduced, whilst in others, it is still significant.

Taking advice from someone who understands the Spanish implications (and also the UK implications if you remain UK resident) can help you mitigate taxes. Speak to a tax and wealth management firm like Blevins Franks with experience of reducing taxation in Spain to be confident that you are not paying more tax than is necessary and that you will not get caught out with an unexpected tax bill.