If you are a foreigner and have assets in Spain, you may have wondered more than once whether it is necessary to have a Spanish will or whether it is sufficient to sign it in your country of origin. In this article we are going to explain that it is indeed important to make a Spanish will not only because it is a simple and affordable procedure, but also because it will avoid costs and complications for your relatives at the time of your death.
What is a will?
A will is a document stating the disposal of all or part of a person’s assets after his or her death. It is a very personal act that requires the intervention of the interested party and, although it can be executed in different ways, the most common is the so-called open will signed before a notary.
Will signed in a foreign country
First of all, you should know that a will signed in your country of origin is valid and applicable also with respect to assets located abroad. However, the foreign will requires a previous validation for its application in Spain, with the resulting additional costs in terms of legalisation, translations and the possibility that the interpretation may not be in accordance with the testator’s will.
In addition, it should be borne in mind that the time cost of such processing may compromise compliance with inheritance tax obligations, the deadline for which is six months from the death of the testator.
Advantages of making a will in Spain
At this point we have to conclude that it is advisable to sign a Spanish will if you are a foreigner and have real estate, bank accounts or any other assets in our country.
The main reason is to speed up the procedures in the event of death, avoiding the validation of foreign documents and thus considerably reducing the processing costs, as well as ensuring that the testator’s will is unequivocally expressed.
Law applicable to the succession
Following the publication of the Regulation of the European Parliament and of the Council no. 650/2012, of 4 July 2012, not applicable in Great Britain or Ireland (but applicable to British or Irish nationals resident in any country signatory to the agreement, including Spain), the law applicable to succession is that of the habitual residence and not that of the nationality of the testator unless otherwise stated in the will, so you must state your wishes in the will, or, if you are resident in Spain, the legitimate and other Spanish rules will apply. This point is especially important in the case of inheritance systems such as the British one, where there is absolute freedom of testament, so it is clear that if you are British, it will be an undoubted advantage to follow the law of your nationality.
Furthermore, you should know that signing a will does not commit you for the future, as it can be modified at a later date, which means that your last will and testament in Spain will be the valid one and the one that will be applicable to your succession.
Lastly, you should know that a will signed before a notary in Spain is registered in a central registry in Madrid called the Register of Last Wills, which you will have to go to at the time of death to verify the last will granted in Spain and the notary who authorised it.
Inheritance tax
Inheritance tax is a tax that must be paid by the beneficiaries of an inheritance or legacy and, although it is a national tax, it is managed by the autonomous communities, which gives rise to a very diverse scenario depending on where the payment must be made, leading to cases where the payment is symbolic or non-existent, as is currently the case in Andalusia, and others where there may be a considerable tax burden.
For these reasons we recommend that you consult an expert in inheritance to make a correct tax planning.
Do you need help with your Spanish will or with the processing of an inheritance?
We recommend that you contact us and we will help you to draw up your will and to secure the future of your loved ones.
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