Inheriting real estate in Spain

Proof to be Provided to the Land Registry

According to Spanish land registry regulations, the right to inherit must be evidenced by an inheritance title so as to enable the registration of the rightful successor in the property register. Legitimate titles can be an inheritance contract, a will, a notarial deed establishing the legal heirs, or the European Certificate of Succession. Wills drawn up in the presence of a notary in Germany are also recognised. If jurisdiction lies with German courts, a German certificate of inheritance or a declaratory judgment by a German court will also be approved. Irrespective of these requirements, the acceptance of inheritance is typically notarised in Spain, with the aforementioned documents attached to the notarisation.

Who is responsible for issuing the inheritance certificate?

The responsibility for determining inheritance rights is governed by the European Succession Regulation, which regulates cross-border inheritance cases. The decisive factor for determining the competent court and applicable law is the deceased person’s last habitual residence.

With which notaries can I declare acceptance of the inheritance?

Any notary in Spain can carry out the notarisation of the acceptance of inheritance. In Berlin, the acceptance can also be notarised by the consul at the embassy. The following documents are typically required for the preparation of 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 Extract
• Spanish Tax Identification Number for Foreigners or Spanish nationals

Must documents be translated into Spanish?

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

Must a Spanish tax return be submitted when the heirs are entered in the land register?

Spanish inheritance tax must be declared and paid before the heirs are entered in the land register. This is a necessary step to ensure that all tax obligations are met and that registration can proceed without delays.

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.

Spanish Inheritance Tax

In Spain, inheritance tax is generally standardised. However, Spain’s autonomous regions have the right to deviate from these regulations and establish their own ordinances. Spanish inheritance tax is determined progressively based on the value of the inheritance, with rates ranging from 7.65% to 34%.

Tax Relief

The inheritance tax allowance depends on the familial relationship between the deceased and the heir. Additionally, under certain conditions, up to 99% of the value the primary residence of the deceased may be deducted from the taxable base ‒ up to a maximum value of 200,000 euros.

When is the inheritance tax due?

In Spain, inheritance tax must be paid no later than six months after the death of the deceased.

Can German inheritance tax also be due on an inheritance in Spain?

If the testator or the heir are 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. Tax credit in Germany is only granted in the case of unlimited gift tax liability in Germany.

Att. Prof.* Dr. Stephan J. Lang

Svetlana Evgrafova