Inheriting real estate on the Balearic Islands

What particularities apply on the Balearic Islands?

The property law of the Balearic Islands differs in some significant ways from that of mainland Spain. These differences pertain to both legal and tax aspects and are particularly important for testators and heirs.

Which law applies to inheritance cases on the Balearic Islands?

Whether the inheritance law of Mallorca, Menorca, Ibiza, or Formentera applies is determined by two factors. Firstly, according to the European Succession Regulation, Balearic inheritance law is applicable if at time of life the deceased had their social centre of life on the Balearic Islands and passed away there. The Balearic inheritance law will also apply if the deceased was a Spanish national or had a residence on the Balearic Islands for at least two years, thereby acquiring the right of citizenship. If, however, citizenship rights were not obtained, Spanish inheritance law may apply.

Notarial acceptance of inheritance on the Balearic Islands

For real estate to be registered in the Spanish Land Registry and for the heir to be recorded as the new owner, a public deed or a legally binding court judgment are required under Spanish land registry law. This initially presupposes notarial acceptance of the inheritance. In the case of multiple heirs, a division of the estate with allocation of ownership is also necessary.

Who has the authority to issue proof of inheritance?

Jurisdiction for determining inheritance rights is established by the European Succession Regulation, which governs cross-border inheritance cases. The decisive factor in determining the competent courts and applicable law is the last habitual residence of the deceased.

Which notaries can I declare the acceptance of inheritance with?

Any notary in Spain can carry out the notarial acceptance of inheritance. In Berlin, the acceptance of inheritance can also be certified by the consul at the embassy. The following documents are regularly required for the preparation of the certification:

• Certificate of Inheritance
• Death Certificate
• Certificate of Testamentary Dispositions
• Certificate of Life Insurance Policies
• Bank Certificate of Existing Balances
• Notarial Purchase Contract for Real Estate in Spain
• Proof of Cadastral Values
• Current Land Registry Extract
• Spanish Tax Number for Foreigners or Spanish nationals

Do documents need to be translated into Spanish?

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

When and how is the transfer to the heirs carried out?

After the notarisation of the acceptance of the inheritance and the transfer of ownership, an application for registration can be submitted. If the Land Registry refuses the entry, it is possible for the inheritor to file an appeal.

Can German inheritance tax also apply to an inheritance on the Balearic Islands?

If the deceased or the heir is resident in Germany, German gift tax generally applies as well. The inheritor can avoid double taxation in full or in part by offsetting the Spanish inheritance tax against the German inheritance tax.

Att. Dr. Jacinto Soler-Padró