INHERITING FOREIGN ASSETS AS A SPANISH RESIDENT: DO NOT FORGET YOUR TAXES!

If you are a foreign national residing in Spain – meaning you are a tax resident here – and you have inherited money or assets from abroad, there is a crucial step you cannot overlook: declaring these inheritances to the Spanish tax authorities.

It is a common area of confusion, but failing to declare can lead to significant problems with Hacienda (the Spanish Tax Agency).

Why declaration is crucial (even if tax-exempt)?

You might be wondering: “How exactly do I do that?” That is where we come in. We specialise in guiding Spanish residents through the process of declaring foreign inheritances.

Here is a key point: In many cases, the payment of inheritance tax on these foreign assets might be exempt for Spanish residents, especially given regional tax allowances (like those in Andalusia).

However, even if the tax payment is exempt, the obligation to declare the inheritance still exists. This declaration is vital for several reasons:

• Avoid bank account blocks: failure to declare could lead to Spanish banks freezing your accounts if they detect a large, unexplained incoming sum.
• Prevent issues with annual income reviews: the Spanish tax authorities review your annual income. An undeclared increase in your assets from an inheritance could raise red flags and lead to uncomfortable questions.

How we can help you declare your foreign inheritance

To get started, we will need specific documentation from the inheritance in your home country. This usually includes papers clearly stating the amount you have received or are due to receive, and details about the person from whom you inherited it.

Important Timeline: Generally, you have six months from the date of death to declare the inheritance in Spain. However, it is possible to apply for an extension for another six months.

Once we have the necessary documents, we will:

• Prepare the corresponding explanatory documentation.
• Accurately calculate and file the relevant inheritance tax declaration (even if the resulting tax payable is zero).

DO NOT RISK IT – AVOID ISSUES WITH HACIENDA!

Navigating international inheritance rules and tax obligations can be complex. Do not take chances that could lead to penalties or legal issues down the line. Let us help you ensure everything is handled correctly and efficiently.

Contact us today to declare your foreign inheritance and gain peace of mind!

NAVIGATING SPANISH INHERITANCE: A GUIDE FOR FOREIGN HEIRS

Losing a loved one is incredibly difficult, and it can become even more complex when their estate includes assets in a foreign country like Spain. Many foreign families feel lost, unsure if there is a Spanish Will or how to transfer a property or bank account into their name so they can eventually sell it.

At Andalucia Lawyers, we are experts in international inheritance, and we are here to guide you through this complex process.

We understand that dealing with an inheritance in a foreign country can be overwhelming. It is natural to have questions like:

• Do my loved ones have a Spanish Will?
• How do I transfer a Spanish property or bank account into my name?
• What are the legal and tax implications?

The good news is that you do not have to navigate this alone. We specialise in making the process as smooth as possible for foreign heirs.

Seamless process, even from afar

One of the biggest concerns for many international clients is the need to travel to Spain. With Andalucía Lawyers, you do not have to! We can manage the entire inheritance process remotely using notarised powers of attorney. Our 100% online tracking system provides complete peace of mind, keeping you informed every step of the way during a challenging time.

Whether your loved one:

• Granted a Will in Spain: We will guide you through its execution.
• Did not have a Spanish Will, but Spain was their last habitual residence: We can help establish their legal heirs under Spanish law.
• Had a Will in another country that needs to be applied in Spain: We are fully proficient in coordinating these cross-border procedures.

Beyond the legalities: taxes and more

Inheritance involves Spanish taxes, but here is some good news for many of our clients: inheritance tax between spouses, children, and parents is often largely exempt in Andalusia thanks to regional allowances. We will always ensure you benefit from all possible exemptions.

Our comprehensive service also includes:

• Handling all national and local taxes.
• Registering property at the Spanish Land Registry and Cadastre.
• Facilitating bank account transfers or closures, and changes in ownership regarding utilities.

Let us simplify things for you

Our goal is to simplify the Spanish inheritance process, allowing you to focus on what truly matters. If you have any questions or need assistance with an inheritance in Spain, please do not hesitate to contact us!

Andalucia Lawyers: your trusted guide for international inheritance in Spain.

DON’T LEAVE YOUR SPANISH ASSETS TO CHANCE: WHY A SPANISH WILL IS A MUST FOR FOREIGNERS.

If you are a foreign national with a property, a bank account, or other valuable assets here in Spain, this article could be relevant to you! Have you thought about what happens to those assets if something unexpected occurs?

It is a common misconception that a Will drafted in your home country will smoothly handle all your worldwide belongings, including those in Spain. While technically true, relying solely on a foreign Will for your Spanish assets can lead to a bureaucratic nightmare for your loved ones at an already difficult time.

The hidden costs of not having a Spanish Will

Imagine your family trying to navigate a foreign legal system, dealing with endless paperwork, sworn translations, and expensive legalisations – all while grieving your loss. That is often the reality when a foreign Will is used to settle a Spanish estate.

Here is why a separate Spanish Will for your Spanish assets is a crucial advantage:

• Your heirs can directly inherit your Spanish assets without waiting for a lengthy Grant of Probate or similar process from your home country. This saves them precious time and significant legal fees.
• Avoid the hassle and cost of translating and notarising numerous documents from your home country for the Spanish authorities.
• You ensure that your Spanish assets are distributed exactly as you wish, with minimal stress for your beneficiaries.

It is a win-win: smoother process for your family, less expense, and quicker access to their inheritance.

The European Succession Regulation: a game-changer for expats

If you are an expat living in Spain, there is another crucial reason to consider a Spanish Will: The European Succession Regulation (EU) No 650/2012, which came into effect on August 17th, 2015.

Before this regulation, the general rule was that your estate would be governed by the inheritance laws of your nationality. So, if you were a British national living in Spain, your estate would typically be subject to UK inheritance law.

However, the new regulation significantly changed this. Now, unless you specifically state otherwise in your Will, the law of your last habitual residence will apply to your estate. For many expats in Spain, this means Spanish inheritance law could apply by default!

This is precisely why signing a Spanish Will is so important. It allows you to make an explicit declaration that you wish the inheritance law of your country of nationality to apply to your entire estate upon your death.

How we can help you draft your Spanish Will

Our firm specializes in helping foreign nationals like you secure their assets in Spain. Drafting a Spanish Will is a straightforward process when guided by experienced professionals.

Don’t leave your Spanish legacy to chance. A small investment now can save your loved ones significant time, money, and stress later!

Ready to get started or have questions? Contact www.andalucia-lawyers.com today!