Estate settlement on the Canary Islands

In Which Cases Must Inheritance Rights be Proven?

Generally speaking, inheritance rights must always be verified. The type of proof required depends largely on whether the estate on the Canary Islands includes real estate and whether the jurisdiction lies with German or Spanish courts. This means that different documents and proofs may be required depending on the type of assets and the applicable body of law.

Proof Required by the Land Registry on the Canary Islands

According to the Spanish Land Registry Act, to enable their registration as successors of the deceased in the Land Registry, beneficiaries must prove their inheritance rights by means of an inheritance certificate. Among such documents are an inheritance contract, a will, a notarial deed identifying the legal heirs, or the European Certificate of Succession. A will drawn up in the presence of a German notary will also be recognised. If jurisdiction lies with German courts, a German certificate of inheritance or a German court ruling on the determination of heirs will also be accepted. Regardless of these stipulations, the acceptance of the inheritance generally needs to be notarised in Spain. The aforementioned documents are typically attached to the notarial deed.

Proof Required by Banks

Banks on the Canary Islands generally require the same proof of inheritance as Land Registries. However, it is at the discretion of the bank in question whether exceptions will be made. Heirs typically receive access to the funds in the deceased person’s bank accounts only after they have proven to the bank that the inheritance tax has been paid. Sometimes, however, heirs can only pay the inheritance tax using the funds from the deceased person’s bank account. In such cases, it is possible to request that the tax liability be settled directly from the deceased person’s bank assets. Beneficiaries are therefore advised to contact the bank at an early stage so as to clarify the specific requirements.

Who is Authorised to Issue Proof of Inheritance?

The jurisdiction for determining inheritance rights is governed by the European Succession Regulation. This regulation applies to cross-border inheritance cases. The decisive factor in determining the competent courts and applicable law is the deceased person’s last habitual residence.

How is Inheritance Accepted?

Under Spanish law, in order for beneficiaries to receive access to their inheritance, a formal acceptance of inheritance is required. Before heirs can be registered as the new owners in the Land Registry, the inheritance must be accepted in public form, either through a notarial deed or by means of a court judgement. Spanish banks typically also require a notarised acceptance of the inheritance.

Which Notaries can Certify Acceptance of Inheritance?

Any notary on the Canary Islands or from other parts of Spain can carry out the notarised acceptance of inheritance. However, notaries in Spain will not provide advice to the party that may be in conflict with another party represented by them. Inheritance matters usually necessitate thorough involvement on the part of a specialist, who will be able to address all the nuances so that the notarial certification can take place. In Berlin, acceptance of inheritance can also be certified by the consul at the embassy. The following documents are usually required for notarisation:

• Proof of Inheritance
• Death Certificate
• Certificate of Testamentary Dispositions
• Certificate of Life Insurance
• Bank Certificate of Existing Balances
• Notarial Purchase Agreement for Real Estate in Spain
• Proof of Cadastral Value
• Current Land Registry Statement
• Spanish Tax Identification Number for Foreigners or Spanish nationals

Do Documents Need to be Translated into Spanish?

Yes, all documents not provided in Spanish must be submitted with a translation by a sworn translator. This allows to ensure that the documents are recognised by the Spanish authorities. Additionally, certain foreign documents not recognised under the European Succession Regulation or international law may require an apostille or legalisation.

Must an Inheritance Division be Carried out before Registration in the Land Registry?

Yes, if there are multiple heirs, a partition of the estate with the assignment of ownership is also necessary before registration in the Land Registry. This is often certified within a joint deed. This division ensures that each heir receives their rightful share of the estate and that the assets are distributed accordingly.

Should the Equalisation of Accrued Gains or the Dissolution of Joint Marital Property be Carried out Simultaneously with the Division of the Estate?

In the case of a community of acquisitions or a community of property, the joint marital property must be dissolved. The equalisation of accrued gains should also be conducted as part of the process involving the division of the estate and the acceptance of the inheritance, as the claim for equalisation of accrued gains is not subject to inheritance tax, and therefore high tax dues can be avoided.

Is a Spanish Tax Return Required when Heirs are being Registered in the Land Registry?

Before heirs can be registered in the Land Registry, the Spanish inheritance tax must be declared and paid. This is a necessary step so as to ensure that all tax obligations are met, and that the registration can proceed without delay.

When and how is Real Estate Transferred to the Heirs?

After the notarisation of the acceptance of inheritance and the allocation of ownership have taken place, an application for transfer can be made. If the Land Registry refuses the registration, an appeal may be lodged.

Att. Sascha Jung

Svetlana Evgrafova