What happens if I own property or assets in Spain

In the event that a British national who owns assets in Spain dies without a Spanish Will, matters can become rather complicated.  

Intestate Estates in Spain - Stage One

First it is necessary to identify whether Spanish or English law applies.

If the deceased lived in Spain then Spanish Law will apply.

If the deceased lived in the UK but did not have a UK Will with a Brussels IV clause within it then Spanish Law will apply.

If the deceased lived in the UK and had a UK will with a Brussels IV clause within it then UK Law will apply to the Spanish estate, however a Spanish lawyer will still need to be involved.

Intestate Estates in Spain - Stage Two

Once it has been established which law applies and who is entitled to inherit from the estate, it is necessary to prepare documentation in order to sign a “declaration of heirs” - this is a document setting out all of the assets of the estate in Spain and the relationship of those who are entitled to inherit to the person who has died.  

It is necessary to include with this document documentary evidence of the relationships of the beneficiaries to the deceased.  In cases where there are a large number of beneficiaries this can mean that a large amount of documentation is required.  

At this stage it will also be important to make enquiries to establish the value of the estate and to calculate any inheritance tax that may be payable in respect of the estate.  

Intestate Estates in Spain - Stage Three

Once the declaration of heirs has been signed it will be possible to sign the acceptance of inheritance in Spain.  This is a document which is signed before a Notary in Spain in which the assets are described and the beneficiaries are set out.  In the case of an intestacy where there is no will, reference will be made to the declaration of heirs in place of the will.  

Once the acceptance of inheritance has been signed any inheritance tax which is payable will become due immediately.  Hence it is important to know how this will be funded prior to signing documentation.  

When the inheritance tax has been paid and the document stamped by the Spanish tax agency work can begin upon obtaining the funds from the Spanish banks and arranging for any property owned by the deceased to be registered in the names of the beneficiaries.  

Intestate Estates in Spain - Stage Four

Once the acceptance of inheritance documentation has been approved by the Spanish tax agency it will be possible to ask the banks to release funds.  Please note that in some cases this can be the part of the process that takes the longest.  Spanish banks can and do take an inordinate amount of time in considering documentation and in making the arrangements to release funds.  Rest assured that you will receive interest for the time that the funds will be held.  

If you are planning to sell the property once the acceptance of inheritance has been completed please note that it will not be possible to register a sale of the property until the inheritance has been registered.  Hence, it is best to avoid marketing the property for sale too early.  

Spanish inheritance laws differ from those in the UK. Priority may be given to children, parents and grandparents ahead of any surviving spouse when it comes to inheriting an estate.

So if you don’t have a Will, it’s easy to see what could go wrong.

Don’t leave it too late – get your Will organised through Thy Will Be Done (Spain) Ltd

It would also be a good idea to appoint Thy Will Be Done as your Spanish Executor if you feel that above would simply be too difficult for your loved ones to arrange.

Similarly, ensure whoever is the executor in your UK Will if have Spanish assets knows how to get hold of Thy Will Be Done to ensure the administration of you Spanish estate is as expedient and cost effective as possible.

Give us a call FREE on 0800 668 11 64