Properties International Mallorca : Real Estate Agency with property for sale in Puerto Alcudia, Alcudia, Puerto Pollensa, Pollensa and all of Northern Mallorca. Properties in Majorca - Immobilien auf Mallorca - Propiedades en Mallorca -

Real Estate Agency with property for sale in Puerto Alcudia, Alcudia, Puerto Pollensa, Pollensa and all of Northern Mallorca. Properties in Majorca - Immobilien auf Mallorca - Propiedades en Mallorca -

Properties International Mallorca : Financial information, incl Wills and Inheritance Tax Mallorca

4. Other Financial matters

Financial information, incl Wills and Inheritance Tax Mallorca

Wills

It is advisable to make a separate Spanish will dealing exclusively with your Spanish assets to prevent your heirs from becoming involved in time-consuming and expensive legal procedures in the event of your death. Furthermore, it is the only way of avoiding the application of Spanish inheritance rules, which stipulate how a person’s estate must be distributed, regardless of their wishes. If you decide not to prepare a Spanish will and have an existing will in the UK, your Spanish assets may be covered. However, the procedure to have your UK will enforced through the Spanish system is not only lengthy and expensive but, more importantly, subject to the Court’s discretion.

A solicitor/Gestor or accountant can assist you in the preparation of your Spanish will and will accompany you to the offices of the Spanish Notary, before whom the will must be signed for validity. Your will is then registered with the Spanish Registrar of Wills in Madrid where it will remain until your death.

Your representative from Properties International can also assist you in arranging to sign your will with the local notary.

Inheritance Tax

Your estate will be subject to Spanish Inheritance Tax if you die while owning property in Spain. Inheritance Tax is a very complicated business in Spain and the rate depends on both the proximity of relationship between the testator and beneficiary, as well as the amount being bequeathed. Under Spanish law any children are compulsory heirs. Tax-free allowances are given to certain beneficiaries, with close relatives receiving higher allowances. The standard allowance is approximately 16,000 Euros, unless minor children are inheriting and the allowance is more. You should bear in mind that a bequest to non-relatives attracts considerably higher levels of inheritance tax in Spain, as people are encouraged to leave their property to family members. This is especially important to bear in mind if you are an unmarried couple.

Please bear in mind that some spanish provinces have recently modified this somewhat harsh law so that providing non-married couples register with the appropriate authorities, they can enjoy the same exemptions as married couples. Once again, Properties International advises that you seek advice from an accountant or gestor on this matter as the laws are quite complicated and difficult to understand.