The Challenge of International Inheritance. Managing an inheritance with foreign clients can become a complex process without the right knowledge and guidance. Legal differences between countries, asset location, and required documentation are just a few of the challenges heirs face when the deceased or beneficiaries are not Spanish residents.
At Toscanolex, we have successfully helped many foreign clients overcome these difficulties. Below, we explain everything you need to know to navigate this process efficiently and without complications.
Inheritance with Foreign Clients: A Real Success Story
One of our recent cases involved foreign clients who contacted us after the death of a relative, also a foreigner and resident in Spain. Initially, they believed the estate only included a bank account with a small balance. However, after conducting thorough investigations, we discovered several properties in Spain and other previously undeclared bank accounts.
The process began with a detailed report identifying both the assets and liabilities of the estate. Since there was no will, we managed the declaration of heirs before a notary and proceeded with the acceptance of the inheritance. This approach allowed our clients to receive what was rightfully theirs without complications or delays.
What is an Inheritance with Foreign Clients?
An inheritance with foreign clients refers to the process of managing the assets and rights of a deceased person when either the deceased, the heirs, or both are non-Spanish residents.
This type of inheritance involves additional challenges, such as interpreting international laws, locating assets, and correctly submitting documents to Spanish authorities. The European Inheritance Regulation states that the applicable law is that of the country where the deceased was last habitually resident unless otherwise specified in the will. Therefore, each case requires detailed analysis to ensure proper application of the law.
Required Documentation for an International Inheritance
To manage an inheritance with foreign clients, the following documentation is essential:
- Death certificate of the deceased
- Certificate of last wills, to verify the existence of a will
- Identity documents of the heirs (DNI, NIE, or passport)
- Bank certificates and property deeds in Spain
- Sworn translation and apostille of foreign documents
Having all these documents from the start significantly speeds up the process and avoids unnecessary delays.
Step-by-Step Process for an Inheritance with Foreign Clients
The process of managing an international inheritance involves the following stages:
- Death certificate and last wills: To verify the existence of a will
- Asset and debt identification: A detailed estate report is prepared
- Declaration of heirs: If there is no will, it is done before a notary
- Acceptance of inheritance: Heirs formalize their rights over the assets
- Tax settlement: Inheritance tax is paid, and assets are registered in the heirs’ names
Each stage must be executed precisely to avoid complications and penalties.
Common Challenges in Inheritance with Foreign Clients
International inheritances present specific challenges, including:
- Legal differences: Each country has its own inheritance regulations
- Asset location: Properties and accounts often remain initially undiscovered
- Translation and legalization: Foreign documents must be translated and apostilled
- Taxes and deadlines: Heirs must settle inheritance tax within the established deadlines
Anticipating these challenges ensures a more efficient and surprise-free process.
Inheritance Without a Will: What Happens in Its Absence?
In the absence of a will, Spanish law establishes the order of succession:
- Descendants: Children and grandchildren have priority
- Ascendants: Parents and grandparents
- Spouse: Provided they were not legally separated
- Collateral relatives: Siblings and nephews/nieces
While the absence of a will complicates the process, it can be effectively managed with the right support.
The Role of the Notary in International Inheritance
The notary plays a key role in inheritance with foreign clients:
- Formalizes the declaration of heirs if there is no will
- Authorizes the inheritance acceptance deed
- Advises on tax settlement and asset registration
Working with a specialized notary significantly simplifies the inheritance process.
Applicable Taxes in Inheritance with Foreign Clients
Taxes vary depending on the fiscal residence of the heirs and the location of the assets:
- Inheritance Tax: Mandatory in Spain, with regional allowances
- Municipal Plusvalía: Paid if there are properties in Spain
- Taxes in the country of origin: Depending on the deceased’s home country legislation
It is essential to calculate and settle these taxes within the established period to avoid surcharges.
Inheritance with Properties in Spain: How Are They Managed?
When the inheritance includes real estate in Spain, the following steps are necessary:
- Obtain the original property deeds
- Register the property under the heirs’ names
- Settle the municipal plusvalía and other associated taxes
Proper management ensures legal security and prevents future issues.
Bank Inheritance: Accessing Accounts and Balances
To access the deceased’s bank accounts, the following documents are required:
- Death certificate
- Declaration of heirs or will
- Bank balance certificate
Once recognized as heirs, they can withdraw funds or transfer them as desired.
Inheritance with Debts: What Should Heirs Know?
Heirs not only inherit assets but also assume the deceased’s debts. To protect themselves, they can:
- Accept the inheritance under benefit of inventory, limiting liability to the inherited assets
- Renounce the inheritance, if debts exceed the estate’s value
Evaluating the balance between assets and liabilities is crucial for making an informed decision.
Timeframe for an International Inheritance
The timeframe varies depending on the complexity of the case and available documentation. Generally:
- With a will: 2 to 4 months
- Without a will: 4 to 8 months
Working with a specialized team can significantly shorten these timelines.
Frequently Asked Questions about Inheritance with Foreign Clients
- Can I manage an inheritance from abroad? Yes, through a legal representative in Spain.
- Do I need to travel to Spain? No, the process can be managed through notarial powers.
- What happens if there are multiple heirs in different countries? Coordination is handled through notarial channels.
- Is it mandatory to pay taxes in Spain? Yes, if the assets are located in Spain.
- What happens if there is no will? A declaration of heirs is made before a notary.
Conclusion: Why Expert Advice Matters
Managing an inheritance with foreign clients can be challenging, but with the right support, it becomes a clear and hassle-free process. At Toscanolex, we handle every stage, ensuring that heirs receive what is rightfully theirs without surprises.
Contact Us: Get the Support You Need
If you are dealing with an inheritance with foreign clients and need professional guidance, Toscanolex is here to help. Our specialized team will guide you through every step, ensuring a quick, clear, and smooth process.
Telephone: +34 951 20 45 95
Email: info@toscanolex.es
Website: https://toscanolex.es/en/
Instagram: www.instagram.com/toscanolex
