2024-09-15 18:54:27
We live in a global world where there are relationships between people from different countries who have assets in different jurisdictions. This suggests that when someone dies, we must be aware of the inheritance rules and taxes of different countries.
As with any inheritance, the first point is to find out whether the deceased had a will or not. If there was no will, the corresponding declaration of heirs would have to be made.
The first thing is to know where to make a declaration of heirs. It is common to think that the declaration of heirs must be made in the country of origin of the deceased, but it is not necessary. Quite the opposite. It is likely that he is a Spanish citizen who has lived in any country of the European Union for many years and dies suddenly without a will in that country. The first reaction was to think that the declaration of heirs should be made in Spain, but this is not the case. Declaration of heirs should be made in the European Union country of residence where you died and in accordance with the inheritance laws of that country. The same thing would happen to a citizen from any other country in the European Union who has lived in Spain for many years. In this case, the declaration of heirs would be made in Spain in accordance with the rules of the Civil Code.
Once the declaration of heirs has been made in the country of residence of the deceased, the next step is the consideration of inherited assets.
Legacy award
Those heirs who wish to renounce the inheritance should do so before the award before a notary or at the Spanish Consulate. There is usually another doubt about where the legacy award should be signed. If, for example, all the assets of the deceased were in Spain, the award could be signed in Spain or at the Spanish Consulate and the heirs would have to pay the Inheritance Tax and the municipal capital gains in Spain , paying taxes as residents or. non-residents. It could also be done in the country of residence of the deceased, although the document should be translated into Spanish by the apostles of The Hague. It is worth remembering that if the heirs do not live in Spain, they must obtain a NIE to pay taxes.
The NIE can be managed by the Spanish Consulate. As is well known, the Inheritance Tax it allows the deduction of burial, funeral and terminal illness expenses.
At this point, for example, we could consider whether burial and funeral expenses and terminal illness expenses paid in another European Union country would be deductible in Inheritance Tax. From our point of view, they would be deductible since, otherwise, discrimination contrary to Community Regulation would be occurring.
Another issue that usually raises doubts is the application of the bonuses established by the Autonomous Communities. For some time, the courts have indicated that non-resident heirs can apply the tax benefits of the Autonomous Community in which the assets were located. If, for example, the deceased had real estate in the Community of Madrid and the inheritance was from parents to children, the 99% bonus provided for in the Community of Madrid could be applied.
It could happen that the deceased had assets in Spain and another European Union country, for example, in France, where the Inheritance Tax. In this case, if the heirs lived in Spain, they would have to pay the Spanish Inheritance Tax on all assets located in Spain and France, and deduct the Inheritance Tax.or satisfied in France to avoid double taxation.
Once the award has been made and taxes have been paid, you will have to go to the registry office to change the ownership and that would complete the inheritance.
Antonio Martínez Mosquera, lawyer specialized in inheritance law at Martínez Lafuente Abogados
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