Inheritance in Marbella for Non-Residents
Inheritance for non-residents in Marbella is a rather complicated process due to Spanish inheritance law and the possible taxation. Being one of the favorite destinations for foreign property owners, comes under Spanish Inheritance Law that applies to all properties within its borders, regardless of the nationality of the owner.
Property inheritance for non-residents in Marbella?
The case of inheriting the property located in Marbella on the death of a non-resident of Spain can be quite unique. To further avoid any arrangement that may bring problems – it is advisable that people who do not reside in Spain seek legal advice from lawyers who are practicing the law of their country and are experienced in Spanish law. Pre-planning by writing a will and other legal documents can foster a hassle-free and tax-effective procedure for inheritance in Marbella as per both local and international legal aspects.
Please refer to the following :
1. Applicable Law: EU Succession Regulation allows you to opt expressly for the law of your nationality, or the law of habitual residence to be applicable to succession in Spain Upon failure of choice, it shall be applicable Spanish law, and follows the rule of “forced heirship”. Under Spanish inheritance, there is a system known as “forced heirship” in which the direct descendants and spouse of the deceased are awarded a significant portion of the estate. In this respect, the relevant non-resident property owner who owns property in Marbella will need to consider these laws, notwithstanding the different inheritance practices that may be followed in his or her country.
2. Inheritance Tax: Non-residents in Spain pay the same Inheritance Tax as residents. Spanish inheritance tax is paid by non-residents and depends on the relationship with the deceased and on the value of the inheritance. Normally, spouses and direct descendants meet with very low taxes and, on the other hand, taxes are high for more distant relatives and non-relatives. Moreover, there is no universal inheritance tax by the Spanish government because tax rates and relief could vary regionally.
In Andalusia, you can inherit up to €1mn tax free if you are a spouse or child; and Major reductions even beyond that amount. Yes, this applies also to non-European heirs!
3. Transfer of Property: Probate proceedings cannot be avoided even if the deceased was not a resident. The payment of all applicable taxes and fees must have been completed to allow for the proper praedial transfer without any obstacle.
4. Legal Requirements: Any heir residing in Spain must declare inherited foreign assets in their annual tax return.
Final Tip: Always seek legal and tax advice in this process so that you navigate smoothly through the process. This professional help will ensure that you obtain the maximal value of the inheritance and are in compliance. At LuxuryForSale.Properties, we will be happy to show you the best lawyers in Marbella.
Plan wisely and protect your legacy. For further information or if you would like to schedule a private viewing, please do not hesitate to contact us.