Talking about the Spanish inheritance process isn’t easy. Many people will try to avoid the discussion and, it’s understandable. However, avoiding it isn’t the answer. If you have property in Spain at some point in the future it will be transferred either through donation or inheritance. It’s most important that you take the initiative, explore the options and convey any decision you make to those who will be your inheritors. The first stage is to familiarise yourself with the basics of the Spanish inheritance process.
Inheritance in Spain
There is no automatic transfer of ownership when someone dies. Unlike in some other countries where a spouse, for example, automatically receives the inheritance, this is not the case in Spain. Even when the ownership of the property is shared, the legal transfer process must be followed.
Even though both names are on the Title Deed, the Spanish inheritance process requires that a new Title Deed is signed in front of a notary when one person dies. This is a formal process which must be proceeded by the payment of any Spanish inheritance tax that is due. This factor can come as an unpleasant surprise to your inheritors if they are not forewarned.
Payment of inheritance tax
Your inheritors may know that you are intending to bequeath your property to them if you have made a will in Spain. However, what they might not know is that they will have to pay any inheritance tax prior to the transfer of the property. This means that they cannot offset the costs with money they’ve obtained from the sale.
A property cannot be sold until the Spanish inheritance process has been completed and your inheritors must do this within a six month time frame or they have to pay additional interest on the amount owed. The Inheritance deed must be signed before a Notary and the inheritance tax must be declared. This change of ownership must then be registered with the Land Registry and IHT settled. Now, there can be completion on the sale of the property.
Your inheritors need to be aware of this even thought there might not be much inheritance tax to pay as there are allowances for family members. However, people who are used to a different system can be surprised to be faced with a bill when they are expecting to receive money rather than pay it out.
Wills in Spain
You may have made a will in Spain already. If you haven’t then we strongly recommend that you take this action if you want to be sure that your assets are passed on to the people that you wish to receive them.
Making a will in Spain enables you to look at options that can reduce the amount of inheritance tax to pay. You can reduce tax by spreading assets between more people, as each inheritor may receive a certain amount of property, tax free. There are also other alternatives such as donating your assets before you die with relevant tax allowances for family members in some areas of Spain.
A personalised assessment
You need to make sure that your inheritors are prepared by clarifying now what your situation is and the best way forward for you and your family. We can provide this advice whether you already have a will in Spain, have a will in your home country or don’t have a will at all.
Our experts can help clarify the amount of tax that your inheritors are likely to pay. Our personalised assessment comes in an information folder which provides comprehensive and bespoke advice for you, your family and according to your individual circumstances.
We take into account, the location of your property and the relationships of those who are inheriting from you. The folder includes details of what inheritors have to do to proceed and enables them to prepare as much as they can for a time that is, at least, emotionally traumatic.
The assessment outlines the actions that you have taken and what inheritors should do next. It’s surprising how often people haven’t shared details, such as how to access their will in Spain or who they have trusted to carry out the Spanish inheritance process. Our information clarifies all this in a way that ensures as few problems as possible arise for those you love in the future.
Your personalised inheritance folder includes:
- Introduction and overview of the Spanish inheritance process
- Outline of actions already taken e.g. making a will in Spain
- Implications for inheritors according to current assets i.e. how much Spanish inheritance tax there will be to pay
- Consideration of other options, such as donation
- Information for inheritors about how to proceed in the event of your death
- Outline of any next steps that need to be made
For any assistance in the inheritance process please do not hesitate to contact us at email@example.com
14 October, 2021 1:15 pm
Dear sir or Madam,
I would appreciate some advice please.
I own 50% of my property but Mrs Joanne Holmes inherited 50% too since my partner died in 2019.
She has decided to buy my 50% share through the process of a dissolution and then do a transfer of ownership. Which I’ve agreed to.
As the property will be transferred into Mrs Holmes’s name, does this mean that a sale of the property has not actually taken place ? Or is this classed as just a transfer of ownership.
The reason for me asking is because Mrs Holmes is expecting me to pay in full, for qualified engineers to inspect the gas and electricity supplies and obtain the certificates as proof of safety.
I know it obligatory to obtain these certificates but is this only if its a sale of property or not if an transfer of ownership.
Mrs J R Brown firstname.lastname@example.org
14 October, 2021 6:18 pm
Hi Mrs. Brown,
In Spain there is no obligation by law when selling or through the process of a dissolution of ownership to present any inspection of gas, electricity or water supplies, these if presented would be a private agreement with both parties.
With kind regards,
8 November, 2021 7:20 pm
As surviving widow inheriting my husband’s half of our house in Malaga by his Will made in 2017 to British intentions, can I expect not to pay any Succession /inheritance Tax on this because it is in Andalucia ? Or will it be a bonificacion of 95 or 99% of the full rate ? Also, since he had the Usufruct in his sole name, which I have also inherited, would the half-value become 52% (as nuda-propietaria mine was said to be 48%) ? Is it possible that the Plus Valia will be charged at 52% as well ?
Thank you for your kind attention.
9 November, 2021 9:38 am
Children and spouse will pay nothing when receiving through inheritance up to €1,000,000 in value in Andalucia. However, although the amount to pay is €0 it is necessary to make the tax declaration.
In relation to usufruct/bare ownership (nuda propiedad) we cannot confirm you the values or % as it depends on the age of the usufructuary.
Plusvalia tax is calculated taking in mind if the transfer is of the full ownership, usufruct or bare ownership.
Should you have any further queries please do not hesitate to contac us at email@example.com
With kind regards,
31 January, 2022 8:37 pm
My wife and I are UK residents and we own a Holiday apartment in Mallorca with no mortgage owing. We are considering passing this to our two sons. Would this be more tax efficient, transferred now, rather than to leave them this in a UK or Spanish Will? Bearing in Mind things like Plus value tax in the region of Son Servera Mallorca, as well as Tax on Transfer or Inheritance.
Thank you, for any assistance/advice.
2 February, 2022 10:49 am
Many thanks for your query. The donation to your children could be done from you and your wife to your two sons in the same deed, so it would be an easier process for them as in the future they will hace to deal with two inheritance process. Also, the plusvalia to pay would be less now than in the future as the number of years you won the property affects the plusvalia tax calculation.
On the other hand, in relation to inheritance and donation tax we would need to know more about your specific case due to the peculiarities of these taxes regulation in Balearic Islands. In general terms the inheritance tax has higher allowances than the donation tax, but if for example you rent your holiday home as a touristic appartment and you run it as a bussiness you could apply important recutions also in case of donation.
Please, contact us for more information at firstname.lastname@example.org
With kind regards,
23 April, 2023 11:15 pm
I am married and have two children. I have a property and a small land in the Asturias region. The deed is only on my name as I had the ownership of the property before my marriage. I have a British will but my Spanish asset is not included within.
I would like to understand whether I should transfer the property and the land to my children while I am alive (my wife is content with this) or making a will and leave it to them. I have cancer and I have not long to live so I am trying to find out the most efficient and effective way to ensure my children have the assets and there isn’t much inheritance tax to pay. The total of the assets would be in the region of 300k euro.
25 April, 2023 3:26 pm
Thank you for contacting us.
In an inheritance in Asturias, up to €300,000 is totally exempt from paying inheritance tax when the heirs are the children. Donations to children are subsidised with a reduction of 95% if the value of the donation is €300,000.
As the difference in inheritance tax is not much the donation is usually advantageous because there are less external expenses than in an inheritance.
If you want a more exact calculation it is better to contact our legal department and they can arrange this for you. Their contact details are email@example.com
Do not hesitate to contact us should you have any further queries.
With kind regards,
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