The management of inheritances is a subject that can be very complex in Spain.
If for Spaniards it is already a very complicated process and we usually require the help of specialised professionals, in the case of foreigners who have to process an inheritance in Spain, the issue can become very complicated.
For example, something fundamental is the issue of taxes, as they vary from one autonomous community to another, which is why we must have experts who are not only specialised in the subject, but also specialised in the local legislation of their area of action.
Also, of course, it is important to get advice and to know perfectly all the steps to follow in an inheritance process.
In order to help you in some way to learn more about inheritance in Spain, we have prepared a short introduction with the most frequently asked questions.
- Can I receive an inheritance in Spain if I am not a Spanish citizen?
To start from the beginning, we must say that foreigners, logically, can receive an inheritance in and from Spain without any problem. What is true is that there is a whole series of legal and tax procedures that must be carried out and for which it is advisable to have professional help due to their complexity.
- What taxes do I have to pay when I receive an inheritance in Spain?
Inheritances in Spain are subject to taxes. The most important tax, and one that has always generated quite a stir, is the Inheritance and Gift Tax, which must be paid by the heir. This tax varies according to each autonomous region, so each one may have a series of deductions and allowances.
In the event that the inheritance includes real estate, it will also be necessary to pay the so-called ‘Plusvalia’ which is calculated on the value of the real estate according to the market at the time of death.
- What happens if a person dies but has not left a will?
In the event that a person dies without having left a will, there is a whole body of legislation on the subject. In this case, the inheritance will first be received by the legal heirs according to the law. If there are no legal heirs, the next of kin will receive the inheritance.
- How is inheritance tax calculated and when is it due?
Inheritance tax depends directly on the inherited estate. However, as we have mentioned, the amount (the % of the estate to be paid) depends entirely on the provisions of each Autonomous Community, as do the possible deductions.
The latter also tends to vary if it is a foreigner resident or non-resident in Spain.
In general, the deadline for payment is 6 months, which can be extended, with justification, for a further 6 months if requested within the first 5 months of receiving the inheritance.
- Is it possible to renounce an inheritance?
When we receive an inheritance, and here again the importance of having specialised professionals, we must be clear that it can also entail certain unexpected expenses.
Apart from the taxes that we have to pay, it is possible that there may be debts associated with an inheritance (a mortgage or outstanding payments) or a very high tax burden that we are unable to cope with.
Therefore, yes, it is possible to renounce an inheritance, provided that it is recorded by a notary. To do so, there is a period of 6 months from the moment we receive the inheritance and we know and value the different expenses that we have to face vs. the inheritance received.
- What documents do I need to claim an inheritance in Spain?
In Spain, in general, the following documents are necessary at the moment we are going to claim the inheritance of a deceased person:
- Death certificate of the deceased.
- Certificate from the General Register of Last Will and Testament.
- Copy of the will or declaration of heirs.
- Identity document of the heir.
- Property deeds and other documents related to the property.
- Is it possible to sell an inherited property in Spain?
Yes, it is possible to sell an inherited property in Spain. As a prior step, it will be necessary to have completed the inheritance acceptance procedures and to have paid the corresponding taxes.
- Do I have to pay taxes in my country of residence for the inheritance received in Spain?
This depends on the tax laws of your country of residence. Some countries have double taxation agreements with Spain to avoid you paying tax on the same inheritance in two jurisdictions. Consult a tax advisor in your country to clarify this point.
Do yo need any legal help?
At MAM Solicitors we have over 30 years of experience in helping our clients.
If you need any kind of advice on this procedure, do not hesitate to contact us and our specialists will help you with everything you need.