Blogg by the lawyer Juan Francisco Bolaño Blondel
juan.bolano@martinezechevarria.com
Is it necessary to make a will in Spain if you already have one in your country of origin?
It is not compulsory, but it is highly recommended, especially from an economic perspective. Making a will in Spain can avoid significant expenses in the future, as it simplifies the inheritance process and reduces notary, administrative and tax costs. If only a foreign will is available, its recognition in Spain may involve sworn translations, legalisation or apostilles, and even legal proceedings if there are doubts about its validity, which generates additional expenses and delays in the allocation of assets. In addition, the European Succession Regulation establishes that the legislation applicable to inheritance may depend on the nationality or habitual residence of the deceased, which could give rise to complex legal interpretations. If not specified in the will, heirs could face legal disputes requiring specialised legal
advice, further increasing costs. Another aspect to consider is taxation. A will adapted to Spanish regulations allows for efficient inheritance planning, optimising the tax burden and applying reductions or
allowances available in Spain, especially in autonomous communities such as Andalusia, where there are significant tax benefits for descendants and spouses. In short, although a foreign will may be valid in Spain, granting a local will avoids costly procedures, reduces legal uncertainty and allows for more
economical and efficient asset management for heirs.
What is the process for granting power of attorney in Spain?
The granting of power of attorney in Spain begins with the choice of the type of power of attorney, which can be general, if it grants broad powers, or special, if it is limited to a specific act. The document is then
drawn up with the details of the powers granted. The grantor must appear in person before the notary with their passport or national identity card, where the document will be read and validated before being signed. Once signed, the notary issues an authorised copy that the attorney will use to act on behalf of
the grantor, while the original is filed at the notary’s office. If the grantor is abroad, they can grant the power of attorney at a Spanish consulate or before a local notary, although in this case they will need the Hague Apostille and a sworn translation for it to be valid in Spain. At any time, the power of attorney can be revoked by means of a new notarial deed, notifying the attorney-in-fact to prevent its subsequent use.
It is a quick and simple procedure that allows the lawyer to carry out all possible procedures on behalf of the client.
What are the costs of granting a power of attorney in Spain?
The granting of a power of attorney in Spain will depend on several factors, including the chosen notary and whether or not the identity cards and/or passports are presented, which are necessary to obtain the foreigner’s identification number (NIE). Roughly speaking, the price ranges from €140.00 to €190.00 on the Costa del Sol.
In general, what taxes are paid on inheritances in Andalusia?
In Andalusia, Inheritance and Gift Tax is applied to inheritances, although there are rebates that reduce its impact. Descendants, ascendants and spouses enjoy a 99% rebate, and are exempt if they inherit less than €1,000,000 per heir. However, the tax is applied to inheritances in Andalusia. In Andalusia,
Inheritance and Gift Tax is applied to inheritances, although there are rebates that reduce its impact. Descendants, ascendants and spouses enjoy a 99% rebate, and are exempt if they inherit less than €1,000,000 per heir. However, the tax is applied to inheritances in Andalusia. In Andalusia, Inheritance and Gift Tax is applied to inheritances, although there are rebates. Descendants, ascendants and spouses enjoy a 99% rebate and are exempt if they inherit less than €1,000,000 per heir. However, other heirs, such as siblings or nephews and nieces, do not have significant rebates and can pay up to 26%
depending on the value of the inheritance. Furthermore, if real estate is inherited, the municipal capital gains tax must be paid, calculated on the increase in the value of the land. Although inheritance is not subject to income tax, the income generated subsequently by the inherited assets is. In short, the tax system in Andalusia is very favourable for immediate family members, but more burdensome for heirs with no close ties.
