Do you have a home or business in Andalusia, or are you planning to leave for southern Spain? Then we have is good news: on 20 September 2017 it was decided to adjust the inheritance and gift tax. In the end, that will ensure that you hardly have to pay taxes for a legacy of less than 1 million euros.
According to the new agreement, direct heirs (from parents to children) who inherit less than one million euros receive an exemption of 99%. The aim of the new measure is to put more money into circulation for the creation of new businesses and employment. For heirs who are at least 33 percent invalids, the rules are relaxed even further.
Also for foreigners
The measure applies not only to Andalusians, but also to anyone who has a home or business in Andalusia. Since the inheritance tax in the Europe is much higher and the exemptions much lower, it may therefore be very interesting in the future to buy a house or business in Andalusia. As long as the intentions have not yet been laid down in a law, the old rules apply. This means that you do not have to pay tax on a legacy of 250,000 euros or less. Higher amounts are taxable. But those rules are also more favorable than in the rest of Europe.
A WILL IN SPAIN
When you have goods in Spain, you will ask yourself the question: Is it necessary for me to make a testament in Spain? The answer to that question is, no, it is not absolutely necessary, but it is very sensible. Why?
When someone dies without having made a will, his / her possessions will be distributed to the legal heirs according to the legal provisions. If you own property in Spain, according to the Spanish rules of international law, the inheritance will be divided according to your personal law, that is the law of your nationality (German law for Germans, Chinese law for Chinese and Dutch law for Dutch). For citizens who have been enrolled for longer than 5 years from their country, however, the law of the country in which you reside must apply, unless you have a different will in a will recorded.
To avoid problems with this complex matter, making a Spanish will is highly recommended. Another reason to make a will in Spain is to prevent your heirs from being confronted with nerve-racking, long and expensive procedures, such as having (officially) translated and legalized all documents, the Notary can issue a certificate about the content foreign law requirements, etc.
Furthermore, it is important that if you have a separate will in your own country, that the provisions in both documents correspond, ie not contradict each other.
Procedure for drawing up and registering a will in Spain.
- Determine which goods you want to leave to whom.
- Find a lawyer who speaks your language and who can help you draw up a bilingual document that meets the legal standards.
- The lawyer will submit the contents to the notary, and will arrange an appointment to sign the will. The will is signed by the future testator, the notary and the translator.
- The notary keeps the original in its archives, and passes on the existence of the will to the Central Testaments Register in Madrid. At present, there is no (yet) Central European or International Register. We recommend that you request a copy of the document.
- Let your partner and / or heirs know that you have drawn up a will in Spain and keep the copy in a place where they can find it. Remember that the copy does not have legal validity, and you should always request the original from the Notary.
- You can make your will changes whenever and as often as you want. Changing circumstances may require a change, but it is also wise to reread your will from time to time and to adjust it if necessary. You have to go back to a Notary for this.