Do you have your affairs in order in Spain? We will gladly help you with this!
Do you own a holiday home in Spain? Or does a family member live in Spain permanently? Or perhaps you own a company there? It is important to have your affairs in order in case something happens. Making sure everything is organized properly starts here!
Which country taxes homes after decease?
The country in which the property in located has the right to levy the property related taxes when the owner dies. If you own a property in Spain and you die, Spain will levy inheritance tax on it.
Later on in this process, the foreign (European) tax authorities will be involved as well, who will, based on a unilateral basis, take into account the tax paid in Spain.
However, it is most likely not the case that when both the testator and heir live abroad, no tax declarations have to be made in Spain. There does have to be a tax declaration in Spain, and this declaration period does not expire.
Who is the starting person of the Spanish tax authorities?
In case of a decease, the Spanish tax authorities determine what the heirs will inherit, while the foreign tax authorities (depending on the country) might focus on the testator. In other words: the Spanish tax authorities charge the recipients being residents in Spain, and other EU-countries might charge those who die while they are (fictitiously) residents abroad (depening on the country). It is important to check this.
Depending on where the testator and potential heirs live, can this be of great influence on the taxation and planning.
Inheritance law obviously differs by country, but in Spain it also differs by region. For instance, the child´s share – the minimum share of the inheritance to which the children are entitled after the first parent deceases – is different in Catalunya than it is in Andalusia.
Separately, the amount of inheritance tax in Madrid is again fairly different from for example that in Mallorca. The same goes for gift tax. All of this can greatly influence your tax planning and the way you want your will.
Your will in the sign of Spain
If you own a property in Spain, if you live in Spain and have heirs abroad, or your parents still live abroad while you live in Spain, then it would be important to check your will against different legislation between and Spain and the other country.
This is important in order to assess whether the will still is in line with the initial intention.
This way, unpleasant surprises can the avoided and, moreover, more beneficial plans can be made. Would you like to have your will checked? Send us an e-mail easily without any obligations!
Do you have other questions regarding Spain? Contact us easily and without any obligation!