Wills for Spanish Assets
We understand that Spanish property law and Spanish Inheritance Tax for non residents and residents is often a confusing area for individuals and couples with property in Spain. We provide you all necessary information about Spanish Inheritance Tax (one of the most expensive taxes in Spain) and Wills, because to BeneditSolicitors is one of the first things that purchasers should be informed about when buying their Spanish property.
Unlike in several European countries, in Spain there is no exemption from Spanish Inheritance Tax between husband and wife, just a small deduction on the Tax. A tax form and all procedures must be completed and the taxes paid within 6 months of death. In Spain it is the heir who is taxed and not the estate.
The inherited property cannot be sold or used as collateral to secure a loan/mortgage in order to pay the Spanish Inheritance Tax invoice. Both of these two actions would require a change of ownership from the deceased’s name into the inheritor’s name(s) to be made to the escritura (Property Deeds) by the Land Registry. This cannot be carried out whilst there is an outstanding Spanish Inheritance Tax bill associated with the property.
Many foreigner owners of Spanish properties are totally unaware of the above facts resulting in added stress, financial problems and bureaucratic difficulties for loved ones. By taking our expert Benedit Solicitors Inheritance Tax advice and acting in advance now, you can be assured that you and those you care for can rest easy knowing everything is in place when the time comes.