Spanish inheritance tax
More information on Spanish inheritance tax, a huge worry for many people, but here we provide you with the basics on what is Spanish inheritance tax and how you can properly plan for it.
Although foreign wills are legally accepted in Spanish inheritance cases, it is a good idea to have a Spanish will for your Spanish assets, to avoid complications during the inheritance process. Spanish law dictates that two thirds of an estate must be bequeathed to the children, as compulsory heirs. However, all British property owners can choose their own heirs and this will not be challenged by forcible heirs under Spanish laws.
The Spanish will must be signed before a Notary Public. The Notary Public will keep the original and a copy is sent to a central registry of wills in Madrid.
Expats resident in Spain who are paying tax are liable to pay Spanish Inheritance tax regardless of the country in which the inheritance is located. Non-residents are liable to pay Inheritance Tax in Spain only on assets which are physically located in Spain. There is no exemption on inheritance tax in Spain, not even for spouses. There is no exemption on Spanish inheritance tax between a husband and wife where they are both resident in Spain. Where they are both living in Spain and, say the husband dies, then the estate left to his wife is fully liable on all assets of the husband, these assets include those outside of Spain.