Making a Spanish Will

Could you please tell me if I need to make a Will in Spain and how much tax will I have to pay?  I already have a Will in the UK

It is advisable to make a will in Spain for several reasons.

If you have a Spanish Will you do not have to wait for the payment of the inheritance in your home country. Otherwise, you will have to wait until this is done and then you will need to provide a translation of the probate proceeding and apostle-stamp the document  (a stamp in according to a Hague convention on certification of signatures by official bodies).  Only then can papers be brought to Spain to make the necessary changes in title deeds and bank accounts. As all these processes can take a long time, and you might incur penalties, as in Spain you have to pay your inheritance tax within six months.

There is a rumour among foreigners in Spain that the Spanish tax administration will take over your property in Spain when you die, or that inheritance taxes are very high. This is not correct. In a normal inheritance, taxes are moderate.
Where property, and generally, the estate of a person is transferred by inheritance, the Tax authorities charge a percentage on the tax based according to a sliding scale where different considerations are taken into account. The same scale is applicable to donations, which is important insofar as this tax could be applied to a purchase/sale contract where the Tax Authority deems that the parties have under-declared the price of the property on a Public deed of conveyance or, in some cases, private purchase contract.
But one needs to plan the inheritance from a fiscal point of view, analysing the possible reductions that can be applied by law to this tax. For instance, if both testator and heir are residents in Spain, and the inheritance is a permanent dwelling, the taxable amount can be reduced 95%. However, for the heir to keep the reduction, he must continue as resident and without selling the property for 10 years. There are also other reductions, depending on relationship between deceased and heir.
If you decide to sell your inherited property, you must take into account that you will have to pay income tax on the amount resulting from the difference between the selling price and the amount appearing in the title deeds, in other words, you will have to pay income tax on the benefit obtained through the sale. Although the individual circumstances of each case have to be taken into account, in some cases it could be advantageous, to declare an amount close to the market value and not lower. 
Finally, as the inheritance tax is a regional tax collected, governed and inspected by the Autonomous Communities you must ensure that you pay the inheritance tax to the relevant and competent community.
G.Blanco    Spanish Solicitor   This email address is being protected from spambots. You need JavaScript enabled to view it.

Additional information