When someone dies leaving assets in Spain, the heirs have to deal with Spanish succession law, Spanish inheritance tax and often the law of another country as well. We help families living in Spain and abroad to make a will in Spain, accept an inheritance, divide the estate and file the inheritance tax return. If you have questions about a property in Spain that you have inherited or will inherit from relatives, our team can give you legal advice before you take any step.
Planning ahead avoids problems for your beneficiaries: a will that chooses the applicable law, a clear inventory of assets in Spain (property, bank accounts, a business) and, where it makes sense, gifts made during your life. We explain the taxation of each option under Spanish legislation, and the benefits and drawbacks of each one, before you decide. Ask us for information about your case at the first consultation.
Since 17 August 2015, EU Regulation 650/2012 on succession decides which country’s law governs an inheritance. As a general rule, it is the law of the country of habitual residence of the deceased at the time of death, not their nationality. In your will you can choose the law of your nationality instead (art. 22 of the Regulation). For a foreign national living in Spain, that choice can change who inherits and in what shares, because the Spanish system reserves part of the estate for certain heirs and other countries do not.
A Spanish will (testamento abierto) is signed before a notary and recorded in the General Registry of Wills (Registro General de Actos de Última Voluntad). If you own property in Spain, a Spanish will makes the paperwork simpler for your heirs, even if you also have a will in your home country. We check that both wills are consistent, so that one does not revoke the other by mistake. After a death, the heirs request the certificate of last wills (certificado de últimas voluntades) to find out whether there is a will in Spain and which one is the latest.
Spanish inheritance and gift tax (Impuesto sobre Sucesiones y Donaciones) is paid by each heir or beneficiary, not by the estate. The same law also taxes gifts made during the owner’s life. How much each person pays depends on the value of what they receive, their relationship to the deceased and their own existing wealth (Law 29/1987). The tax rates rise with the amount inherited, and the regional rules can reduce the final liability a great deal. The return must be filed within six months of the death, and a further six-month extension can be requested within the first five months (arts. 67 and 68 of the Inheritance Tax Regulation, Royal Decree 1629/1991). Allowances and reductions depend on the autonomous community (comunidad autónoma) whose rules apply, so the same inheritance can be taxed very differently in two regions.
Non-resident heirs used to pay under the state rules, without the regional reductions. After the judgment of the Court of Justice of the EU of 3 September 2014 (case C-127/12), Spanish law allows residents of the EU and the European Economic Area to apply the regional rules (second additional provision of Law 29/1987). Before the return is filed, we check which region’s rules apply to you, calculate the tax and arrange the payment, so that you know your situation and your rights from the start. Inheritance tax is not the only one: the heirs may also have to pay other taxes, such as the municipal tax on the increase in value of urban land (plusvalía municipal).
Drafting wills that comply with Spanish law and reflect exactly what the person making the will wants, including the choice of the law of their nationality and the planning of gifts and inheritances.
Representation in inheritance proceedings: acceptance of the inheritance, inventory and division of the estate, and allocation of the assets among the heirs.
Defence and representation in disputes over the validity of a will, its provisions and legacies, including the share that Spanish law reserves for certain heirs (legítima).
Processing the declaration of heirs (declaración de herederos) when there is no will, so that the heirs are legally recognised.
Our firm offers this service to clients resident in Spain and abroad. We handle inheritances and wills from our offices in Madrid and Barcelona, in person or remotely. Inheritance tax rules differ from one region to another, and Catalonia also has its own civil law on succession, so the rules in Madrid and Barcelona are not the same.
You deal directly with the lawyer handling your case, who explains each step to you in English.
We tell you from the start which steps your case involves, which documents we need and which legal deadlines apply.
