Spanish Inheritance Tax Lawyers
Inheritance Tax in Spain
Inheritance Tax in Spain is paid by a heir or beneficiary who has been left money, property or assets in a Will.
Both resident and non-resident beneficiaries are liable to pay Inheritance Tax in Spain.
The amount of tax payable differs from region to region within Spain and there are different allowances and nil rate bands depending on where the property is located, together with the relationship between the beneficiary and the deceased. Unlike the UK however there is no spouse exemption between Husband and Wife and both residents and non-residents are liable for IHT in accordance with the defining rules.
There are strict time limits as to the payment of IHT and a tax return must be filed within 6 months from the date of death. An extension of up to 6 months can be applied for, but no further extensions are given.
In order to avoid Inheritance Tax it is possible to refuse or renounce the inheritance, however the whole of the inheritance must be renounced to avoid the liability.
FAQs
Do you need both a UK and Spanish Will if you own property in Spain?
It is recommended that you have a Spanish Will to deal with your assets in Spain to ensure that matters can be dealt with as quickly and efficiently as possible. An estate can be dealt with under a UK Will, however the process is much more complex and can take much longer to administer. Spanish Probate Solicitors can help in drafting a suitable Spanish Will and assist you with its execution either in the UK or Spain.
Do I need to travel to Spain to deal with Probate?
No. Probate can be dealt with by way of a suitable Power of Attorney on behalf of the beneficiaries or heirs. Spanish Probate Solicitors can arrange a Power of Attorney, which is executed in the UK, in order that your appointed representative can deal with all associated matters in Spain.
What does Power of Attorney mean?
A Power of Attorney is a document that grants an appointed representative the authority to deal with matters on behalf of the person appointing them. In the case of dealing with Spanish Probate, the Power of Attorney enables the representative to communicate, correspond and undertake all the necessary actions in Spain in order that an estate can be distributed as quickly as possible to beneficiaries or heirs. Spanish Probate Solicitors can assist you in drafting a suitable power of attorney for Probate purposes.
What happens if there is no Will?
If there is no Will, the deceased is deemed to have died ‘intestate’. The process of dealing with an intestate estate is complex and the right of any beneficiary or heir must first be proved. Spanish Probate Solicitors can assist you with all of the legal formalities in this regard.