The procedures to receive an inheritance in Spain can be confusing and tedious. With globalization, it is increasingly common to find situations in which some of the parties (heirs or deceased) reside abroad. International inheritances generate many doubts and it is often advisable to have the help of specialized professionals. In this article we review the main issues regarding documentation, deadlines, regulations and questions related to inheritance law in Spain.
Your right to accept or reject the inheritance.
Any person has the right to accept or reject an inheritance regardless of his or her residence at the time of succession. Before making a decision of such importance, as an heir, you should consider the following:
- Acceptance of the inheritance pure and simple: The heir accepts the inheritance with its assets, rights and obligations, i.e. also with its debts.
- Acceptance of the inheritance with benefit of inventory: The debts of the deceased will be faced up to the extent of the estate of the deceased, without compromising the estate of the heir.
- Renunciation of the inheritance: The successor rejects the inheritance in its assets, rights and obligations.
- Right to deliberate: This right allows knowing “the package” of the inheritance through an inventory of assets and debts before making the decision to accept or renounce.
In either case, the procedure must be carried out in a public deed before a notary.
The first step to claiming your inheritance
The act of accepting an inheritance is free, individual and voluntary. The first step is the summons with creditors and legatees in a notary’s office. Afterwards, the formation of the inventory takes place, which gathers all the goods, rights and obligations of the inheritance, including its economic valuation. If you are an heir abroad, these situations may arise:
If you are able to relocate and come to Spain
Maximum available term of 60 days
If you are able to travel to Spain to process the inheritance, a maximum period of 60 days is available for the formation of the inventory.
Extraordinary cases in which the period of 60 days may be exceeded
In exceptional cases, the Notary may extend this period by the time he deems necessary, without exceeding one year.
If you can’t travel to Spain
Going to the Spanish Consulate
If you are unable to travel to Spain, you can go to the Spanish consulate of the place where you reside to seek advice and process the necessary power of attorney for the relevant procedures. The Spanish consulates have the notary function abroad.
Granting special powers of attorney to a notary to accept the inheritance: What is a power of attorney?
A power of attorney is a document that reflects in writing a person to represent us in a procedure. It is used when we are unable to attend in person.
The term to accept or repudiate an inheritance is 30 years, while the term to settle taxes once accepted is 6 months.
What documentation is necessary to present to claim your inheritance?
The procedures to receive an inheritance in Spain involve the presentation of the following documents and certifications:
Death certificate: Where to get it?
This is an official document that certifies the death of a person with the date and place where the death occurred.
If the deceased is Spanish
The Death Certificate is acquired at the Civil Registry of the locality in which the deceased has died.
If the deceased is a foreigner
If the deceased resided abroad, but had Spanish nationality, the death will be recorded in the Consular Civil Registry. In this case, the certificate must be requested at the competent consulate. If the deceased had foreign nationality, it should be requested from the corresponding authorities of the country where the death occurred
Last will and testament document
This certificate allows the relatives of a deceased person to know if there is a will or not.
If the deceased is Spanish
This document must be requested after 15 days of the death at the Registro General de Actos de Última Voluntad.
If the deceased is a foreigner.
The Certificate of the General Register of Last Will and Testament of the corresponding country must be presented.
Life Insurance Certificate
This is an official document that accredits the contracts in force in which a deceased is listed as an insured.
If the deceased is Spanish.
The management of this certificate must be done with the financial entity contracted for the life insurance.
If the deceased is a foreigner
The management must be done directly with the country and with the financial entity with which the life insurance was contracted.
Presenting the will
In case it exists, the will is the voluntary declaration of a person in which he/she expresses what he/she wants to be done with his/her assets after his/her death.
If the will is drafted in Spain.
The Certificate of Last Will and Testament states the last will and testament. You must go to the notary’s office that appears in it with the necessary documentation to be credited as heir: ID card, Family Book and Death Certificate.
If the will is drafted abroad.
This must be presented translated and legalized by the country of origin. If the deceased belonged to the European Union, the European Certificate of Succession can be presented.
Proving your status as heir.
To accredit the condition of heir it is necessary to present the Birth Certificate of the deceased and of all the heirs.
If you were born in Spain
As an heir of Spanish nationality, your birth certificate may be requested at the Civil Registry of your place of birth. Likewise, for the certificate of the deceased and all other heirs.
If you were born abroad
If you are a foreign national, you can request the certificate in your country of birth.
The documents to renounce an inheritance are the DNI of the heir repudiating the inheritance, the will, the Death Certificate and the Certificate of Last Will and Testament. The pure and simple renunciation of the inheritance is done free of charge.
What regulations apply to a foreigner receiving an inheritance in Spain?
In order to receive an inheritance in Spain, the general regulations governing inheritance and the inheritance tax regulations must be differentiated.
General rules governing inheritance.
The general rules governing inheritance are those that determine how the inheritance assets are to be distributed. Following the entry into force of the European Succession Regulation, the law of the country of habitual residence of the deceased at the time of death will apply, unless the testator has chosen in a will to have his national law applied or, in exceptional cases, the law of the country with which he has ties. Although the regulation is European, this law is universally applicable.
Tax rules
The tax rules refer to the taxes that the heir pays on the inheritance received.
Inheritance Tax
Inheritance tax is a state tax of autonomous community management. Each Autonomous Community has its own regulations. The Inheritance Tax for foreigners will depend on the habitual residence of the deceased.
Municipal Capital Gains Tax
This tax must be settled if there is real estate in the inheritance. It is paid at the town hall and refers to the increase in value of urban land.
Frequently asked questions
How long do I have to pay the taxes?
The deadline for settlement of the Inheritance Tax and Municipal Capital Gains Tax is 6 months, counting from the date of death of the deceased.
It is possible to request an extension of 6 more months for the Inheritance Tax (before 5 months have elapsed since the death) and an extension of up to 1 year for the Municipal Capital Gains Tax.
Where should I pay the taxes?
The criterion to be taken into account is the habitual residence of the deceased and must be settled in the corresponding Autonomous Community.
If the deceased was not resident in Spain, the following rules will apply for its liquidation:
- In the region where the highest value of the assets and rights of the inheritance is located.
- In the Autonomous Community where the heir resides.
On the other hand, the Municipal Capital Gains Tax must be settled in the town hall of the town where the acquired properties are located.
Is inheritance tax the same throughout Spain?
Each Autonomous Community has its own regulations regarding Inheritance Tax. This means that, in some regions, the payment is symbolic and in others it is very high. For example, the Valencian Community is one of the most expensive communities to inherit, while Cantabria or Andalusia have very favorable bonuses.
Which regional inheritance tax law will apply to me?
The regional law of the Autonomous Community where the deceased had the last habitual residence will be applied.
As a non-resident, will I pay more tax than a resident in Spain?
If the deceased was resident in Spain at the time of death, regardless of his nationality and that of the heir, the law in force on the inheritance is the Spanish law. The deceased is considered a Spanish resident if he/she has been resident in Spain for more than 183 days taking into account the last 365 days. The Inheritance Tax for a non-resident heir will vary only according to the Autonomous Community in charge of its management and collection.
What happens if I do not claim my inheritance?
In Spain every inheritance must have an heir. In the event that no one claims the inheritance of a deceased person, the successor will be the State and its distribution will take place at municipal, provincial and state level.
If the deceased has assets abroad, would he/she also pay taxes on those assets in Spain?
There can be different situations depending on the nationality of the deceased and the location of his assets:
If the deceased has assets in Spain (regardless of his nationality):
- Heir not resident in Spain: Yes, he/she pays in Spain, for the assets located in Spain and with the regulations of the Autonomous Community. AA in which most of them are located.
- Heir resident in Spain: Yes, he/she pays in Spain, for the assets located all over the world and with the regulations of the Autonomous Community in which the deceased resided. AA in which the deceased resided.
If the deceased is resident in Spain and only has assets abroad:
- Non-resident heir in Spain: does not pay in Spain.
- Heir resident in Spain: Yes, he/she pays in Spain, for the assets located all over the world and with the regulations of the CC. AA in which the deceased resided.
If the deceased is a foreigner (European Union) and only has assets abroad:
- Heir not resident in Spain: He does not pay in Spain.
- Heir resident in Spain: Yes, he/she pays in Spain, for the assets located all over the world and with the regulations of the CC. AA in which the deceased resided.
If the deceased is a foreigner (outside the European Union) and only has assets abroad:
- Heir not residing in Spain: He does not pay in Spain.
- Heir resident in Spain: Yes pays in Spain, for the assets located worldwide and with the regulations of the State.
What are the benefits if the will is made in Spain and in Spanish?
Making a will in Spain and in Spanish being a foreigner with assets in Spain means a great saving of time and money for the loved ones who will inherit the properties. In addition, its execution is cheaper and faster than in many other countries. Some of its advantages are:
- It is compatible and complementary with the will of the country of origin.
- It is not necessary to change the country of origin, it can be drafted as a complement for the assets held in the country with the same criteria and procedure as the general will.
- Regardless of the residence, the amount of taxes to be paid will be the same.
- The heirs will save time and money, since a probate is necessary to accept the will. If they do not have one in Spanish, the document takes 6 months and after this period, a series of monetary penalties begin for delaying the settlement of the will.
Summary
In short, knowing the necessary steps to accept an inheritance is fundamental if we want to save ourselves from difficulties and last minute surprises. It is advisable to make sure of all the steps to collect an inheritance in Spain in order to alleviate the effects of a process that can already be very painful.
If you need expert and legal advice with an inheritance and the steps to follow, do not hesitate to contact us by phone (+34) 670 853 386 or through the email address ignacio@garciataboada.es, we will attend and solve all your doubts without any commitment.
