This is a copy of an editorial prepared by my company for a local magazine - I hope it helps
If you own property or, indeed, any other assets in Spain and if you want to save your heirs a lot of time and expense then the answer has to be YES.
NOTE This particular advice is directed towards British nationals since inheritance laws vary greatly between countries and it is impossible to cover all the permutations in such a small space.
A will made in your home country is valid for Spanish inheritance purposes if there is no Spanish
will. However, in the absence of a Spanish will, the estate left by a British national on death must go to probate. This means a delay in the process of the winding up of the deceased?s affairs of at least six months ? usually considerably longer. It also means increased costs of translation of documents and legalization by the Foreign and Commonwealth Office (apostille).
Spanish inheritance tax becomes due six months after death . After this date penalties are incurred. Due to delays in UK probate it is unlikely that the formalities required in Spain can be completed within this period, increasing the costs for the heirs
Obviously, it is much simpler to keep the Spanish estate separate from any other assets and to rely on a local professional to handle the formalities.
Unlike in Britain, there is no exemption from inheritance tax between husband and wife. A tax form must be completed and the taxes paid. In Spain it is the heir who is taxed and not the estate. Tax will be calculated on the relationship of the heir to the deceased, the amount of the inheritance he/she receives and existing wealth.
All assets will be taxed ? bank accounts, property , cars, golf shares etc. Property will usually be valued at the ?valor catastral? ? the value as calculated by the Town Hall, or rateable value.
A joint bank account will normally be frozen on the death of one of the account holders, although the bank will usually allow the direct debits for services to continue to be paid out of the account. For a car to be sold following the death of the owner it is necessary for it to be detailed in the inheritance declaration and tax to be paid.
Whilst in Spain and indeed in many other countries the system of ?forced heirship? exists, British nationals are exempt from this requirement. Forced heirship implies the obligation to leave your assets in a specific way, i.e a part to your children, a part to your husband or wife etc. This varies from country and it is essential to ascertain your countries legal requirements on inheritance. If you make a Spanish will which conflicts with your national inheritance laws it will be null and void.
As we have said, British nationals have the good fortune to enjoy complete testamentary freedom. They can leave their assets as they wish and to whom they wish. It is, however, important to give careful thought to how the Spanish sited assets are to be disposed of, and to ensure the Spanish will does not conflict with any other will that has been drawn up in another country.
There is no substitute for good professional advice. Beware of some advertisements currently appearing in the local press. They offer an expensive product which may not be valid under Spanish law.
For further information please contact .(JavaScript must be enabled to view this email address)
