WILLS & PROBATE / INHERITANCE MATTERS / INHERITANCE TAX: IHT

In Spain we can differentiate between two types of inheritance. Testate succession (when the deceased granted a will before passing away) and intestate succession (when there is no will).

The initial document in all inheritance proceedings is the Death Certificate. Once obtained, it will be necessary to get the Last Will and Testament Certificate, Insurance Certificate, authorised copy of the will and the rest of the documentation related to the assets that form the inheritance (properties, bank accounts, etc). When all the documentation is ready, the deed of acceptance of inheritance can be signed.

Yes, it is necessary that each and every one of the heirs accepts the inheritance. If an heir cannot sign, it will be necessary for him/her to authorise another person, by means of a Power of Attorney, to accept and sign the inheritance on his/her behalf.

If you grant a Power of Attorney, it will not be necessary for you to travel to Spain. This POA can be granted either to your lawyer or the person you wish to represent you in all the formalities.

Yes, in order to accept an inheritance in Spain you will need an NIE (Foreigner’s Identity Number). Please note that the NIE must be registered with the competent tax authority.

In Spain, Inheritance Tax is paid by each of the heirs individually. This model is different from other countries in our surroundings, where IT is paid directly from the estate. You can find more information about the IT on our website.

Even if the only asset to be inherited is a bank account, in Spain the inheritance process is the same. Please note that, even though it is a joint account between the deceased and the heir, the change of ownership is not automatic. It will be necessary to collect all the documentation, prove payment of taxes, etc in order to have access to the account.

It will depend on the amount of assets to be inherited, the documentation to be compiled, the number of heirs, etc. However, if the deceased granted a will in Spain, the procedure is usually much quicker than if the testamentary/succession document has to be obtained in a foreign country. In this case, it must be translated, apostilled, etc. If everything goes well, the process can take between a month and a half and as long as necessary, depending on the complexity of the matter.

No. In Spain, European Regulation 650/2012, will be applied to Inheritances. That is to say, the law applicable to the inheritance will normally be: either the law of the habitual residence of the deceased at the time of death, or the law of his/her nationality (had the deceased opted for it). Therefore, even if the inheritance takes place in Spain, or if there are Spanish assets, Spanish law and the ‘forced heirs’ rights of the Spanish Civil Code will not necessarily apply. In other words, it will depend on the law that rules the inheritance. If Spanish law is applied, the children will be forced heirs. If the law of another country applies, it will depend on what that law says.

If the deceased did not make a will, the intestate succession would be opened. The law applicable to the inheritance (that will determine who the heirs are) will be the law of the last habitual residence of the deceased.

No. If Spanish law is applicable, the Civil Code establishes that will inherit descendants, ascendants, spouse, siblings and nieces/nephews, other collaterals up to the fourth degree. Only if none of the above exist, the government would inherit the assets.