If the case of inheritance has entered in the family and a part of the property lies in Spain (e.g., in the form of a real estate), these some specific features bring by the reduction winding up with themselves. Though basically German right finds with inheritances with real estate possession in Spain use if the testator owned the German nationality, however, the formalities of the Spanish right are to be kept for the registration of the heirs in the Spanish land register. Besides, the case of inheritance with property in Spain has tax consequences and it the 6-month term is to be kept to the payment of the death tax in Spain, because by disregard of the term beside the already high inheritance taxation still sensitive penal surcharges result.To the heir or the community of heirs a lot of time does not remain to look after the property in Spain. Besides, the positioning questions are without help of a specified lawyer are hardly to be cleared and documents to procure whose acquisition claims every now and then time. Therefore, you should arrange the following steps very early to allow a next regular reduction winding up:

Bank accounts in Spain:
If you inform the bank branch of the case of inheritance with which the testator keeps an account, this is obliged to block the account with regard to most orders. This also concerns debits which serve the maintenance of the real estate and whose non-payment could lead to other complications. Therefore, it can make sense from practical points of view to wait a little bit with this communication and to make sure that the account orders as for example water, stream, real estate tax and if necessary mortgage rates of a sufficient credit for the regular debits.
By no means transfers or cash withdrawals should be carried out.


Spanish tax number (NEVER):
All heirs need for the submission of the Spanish death tax explanation a Spanish tax number. The treatment time in delivery at the authority amounts up to 4 weeks. Therefore, it is recommended never to apply very early. to avoid omission surcharges with the Spanish death tax. You find a suitable form here: Form to the application of a Spanish tax number (NEVER)


International Sterbeurkunde:
For the winding up of the inheritance in Spain an international Sterbeurkunde is required. She contains the same information like a normal Sterbeurkunde, nevertheless, is issued in several languages and is recognised in Spain.


Letters of administration with Hague Apostille:
Letters of administration are to be applied which are to be provided by the court with the Hague Apostille, so that the document is recognised in Spain.


Arrangement of documents and documents:
Put together all documents which give about the Spanish property of the testator's explanation: Notarial purchase document (Escritura Pública) with real estates, the last real estate tax answer of the municipality (IBI - Ayuntamiento), ggfs. At short notice documents to mortgage advance, documents with regard to vehicles announced in Spain, bank documents, etc. having to do you can put together no documents, it is obvious to let carry out a land register search.

If you have followed the abovementioned points and have done the formalities without time delay, win afterwards time to deal with the topic of the winding up of the reduction and, besides, better chances, to keep to the term to the tax payment and to avoid thus penal surcharges on the death tax.


The Hinzuziehung of a specified lawyer is to be recommended on account of the complicated topic. The solicitor's office is specified on reduction windings up in completely Spain. With pleasure we also make to you the first short certificate which creates an overview with regard to the taxes to be expected to them.

Source of information: Volker Borg's lawyer & Abogado Inscrito www.mallorca-pro.com

After we comment to you on some typical questions to the topic of the death tax and property succession of real estates in Spain. Because the topic is very complicated and dependent on isolated case, we recommend from anwaltlicher view to catch up juridical advice possibly before the real estate acquisition in Spain. If you have already acquired a real estate and you would like to know what will expect then your heirs in taxes, then it is advisable to order a "stock-taking" which indicates the juridical and tax consequences in Spain at the current time to you and is a decisive factor situation for possible other steps. With pleasure you can get in contact with us. The office is Spain-far available to you no matter whether your real estate in Valencia, Catalonia or Andalusia book is.

We live for some years firmly in Spain and have acquired there also a real estate. Does the Spanish one or the German law of succession be valid for us now?
Not the question of the residence is vital here, but decisively is the nationality of the leaving bequeath.

Our parents own a holiday apartment on Majorca, have her food point, however, like us in Germany. Where is the death tax to be paid in the case of inheritance?
On the property belegene in Spain the Spanish death tax is to be paid basically. If the heir has his tax residence in Germany, the Spanish property is to be paid tax on basically also there. To prevent a double taxation the German death tax law intends the possibility of the charge in Spain of paid-up taxes.


Is the death tax higher in Spain than in Germany?
The tax sentences lie in Spain for not resident between 7.65 and 34%. The tax sentence is depending on the value of the estate. With a value of only 100,000€ the tax sentence already lies with 18.7%. Besides, the personal free allowances with approx. 16,000€ are much lower than in Germany. These tax charges can be avoided or be lowered at least if already while still alive suitable steps are initiated.


Often one reads of a top rate of income tax of 81.60% in Spain. Is this right?
By the inheritance taxation in Spain tax sentences lie as mentioned above between 7.65 and 34%. A multiplier is applied to this tax sentence between 1.00 and 2.40. The multiplier is depending on the degree of relationship of the heir to the testator, as well as from his existing preproperty in Spain. With offsprings, adopted children, spouses, forefathers and adoptive parents the multiplier lies depending on the preproperty between 1.0 and 1.2. With collateral lines of the second and third degree this already lies between 1.58 and 1.90. A multiplier of from 2.00 to 2.40 is applied to relatives of the fourth degree and in particular non-relative. Therefore lies of the Höchststeuersatz in Spain really with 81.60%.

How is the value of a real estate determined in the case of inheritance?
In Spain exists the system of the selfdisposition. That is the fact that the taxpayer gives the values in his tax return itself. The tax office has the right to check these values. It is decisive according to Spanish law of the „Valor of Real“, the actual value. Incorrectly it is maintained over and over again, merely multiplier from, e.g., 2.5 is to be applied to the cadastral value. Nevertheless, this mistake can become very expensive. Besides, the cadastral values are adapted for some years in many municipalities yearly and will approach in future to the real value. The assessment of the real estate within the scope of the creation of the property succession while still alive or by the winding up of the inheritance is an important point. Besides, the assessment criteria of the tax offices and experience values from the practise are also to be pulled up.


I have a long-standing lifelong companion in Spain and would like to consider this hereditary-juridically. What must I follow?
They have to provide anyway a testament, because the lifelong companion is no legal heir. Nevertheless, care is offered in view of the inheritance-tax aspects. As a non-relative the multiplier of at least 2.00 is to be applied to your lifelong companions. If the property has, e.g., value of 120,000€, the death tax amounts with approx. 15,600€ in the tax class I. Nevertheless, the lifelong companion still has to apply the coefficient 2.0, would have to pay approx. 31,200€ of death taxes. In such cases it is absolutely advisable to search other creation possibilities.

When should I think in Spain of a hereditary-juridical regulation?
Often it concerns with investments on Majorca or in Spain Ferienimmobilen. Hereditary-juridical and inheritance-tax aspects should be still considered before every Spain investment. This is always the most favorable variation. But also with already available real estate possession exist while still alive different possibilities to minimise later death taxes.


When is a lebzeitige property transference of a hereditary-juridical regulation to be preferred?
Already the least tax sentence lies with an inheritance and donation with 7.65% about the land transfer tax to which 7% amounts. And already from a property of 100,000€ the inheritance tax sentence lies with 18.70%. This shows that, e.g., the disposal of the real estate can be more favorable while still alive in many cases, than the case of inheritance. Nevertheless, the creation possibilities are varied and must be judged in particular cases. Anyway every investment or the real estate acquisition needs in Spain of an individual tax-optimised creation.


How can I protect myself by the lebzeitigen property transference (real estate)?
So that you can inhabit this also after transference of the property of your real estate of your children or your lifelong companions carefree, it is to be recommended under circumstances to let grant to itself a lifelong usufruct right or residential right.

Source of information: Volker Borg's lawyer & Abogado Inscrito www.mallorca-pro.com