Fancy a holiday in Mauritius?

Long haul luxury travel company, Hayes & Jarvis, are offering a prize of a 6 night holiday in Mauritius.

To win, all you need to do is send them your best holiday photos and they will select a winner from all submissions they receive.

Here is what you need to know…

Share your holiday experience and win a holiday

• The holiday is 6 nights for two people in the four star Maratim hotel in Mauritius, return flights with Air Mauritius are included
• Photos should be sent to competition@hayesandjarvis.com
• Photos should be at least 1MB in size
• Photos should include a brief description including the location and date the picture was taken, also your address, name and telephone number
• The closing date is 31st December 2012
• The winner will be notified within 30 days of this closing date

Good luck!

 

Buying Property In Spain: Seven Common Problems To Watch Out For

When contemplating a purchase in Spain, you really should automatically take the same or even more precautions that you would when buying a property in your home country. A common sense approach is necessary every time. Unfortunately, this doesn’t always happen and buyers can get carried away by the dream of owning a place in the sun, especially when prices are as comparatively attractive as they are now.

Below we have highlighted seven common problems identified by our surveyors. Add these to your mental checklist when looking at properties to buy in Spain:

Damp – the most common defect we find

There are two sorts to look out for: firstly, rising damp or patches of dampness coming through walls common in properties which have been built against rock or earth; secondly, damp descending from ceilings or terraces above. Both are principally due to improper or no application of damp proofing at the time of construction. Removal of planted troughs and installing gutters and downpipes, would cure many of these problems.

Climate

Don’t forget that for around eight months the year, most of Spain has a temperate climate with wind, rain and chill, especially in mountainous areas. It’s easy to concentrate on how to deal with the heat of summer and completely forget to cater for the winter season. If you are planning on spending the winter here, you’ll need heating of some kind as you’ll be used to having it at home.

Required Documentation

Insist that your lawyer obtains written proof that planning and/or other permissions and/or title registration for the initial construction or alterations have been obtained. Watch out in particular for properties encroaching on restricted areas affected by the Coastal Law or Ley de Costas. Just because the property pays taxes or has a registered title, doesn’t mean that all the permissions are in place.

Utility Connections

Inadequate, ineffective, illegal and/or absent electricity, water and drainage connections can be a problem, especially with rural or country dwellings. They can also be a good indication that a property does not have its first occupation licence.

Personal Responsibility

When buying a property abroad, it’s important to keep your head and not believe all you are told without making your own simple checks. Insist on being provided with copies of all the documents as that will concentrate your adviser’s mind. ‘Misrepresentation’ and buying ‘in good faith’ are often euphemisms for buyers not accepting personal responsibility for their own imprudence. Buyer beware!

Professional Conduct

It can be argued that there is an absence of ‘professional conscience’ among some Spanish lawyers who shrug their shoulders when asked: “Why didn’t you tell me?” They may reply: “You didn’t ask,” even when it was obvious that the client didn’t know what to ask. There are many good, reliable and responsible lawyers out there so do not use the same lawyer as the seller on any occasion. Suing a lawyer for negligence or even fraud is not easy anywhere.

Mortgages

Some Spanish property buyers fail to realise that a mortgage is a personal loan, which will have to be repaid in its entirety. If the property used as security can only be sold at a price inferior to the value of the loan, the individual will be liable for the balance. Spanish banks can and do chase debts to other countries and arrest assets and even earnings there. When a bank awards a 100% mortgage over a property it is selling, be warned. If you have to sell again you will not be able to offer that to a buyer and you may be competing with the banks selling other neighbouring property. This is probably not the bargain it initially appears, but instead may be an amoral offer for you to acquire a liability for instant negative equity even if just the selling costs are taken into account.

by Campbell D. Ferguson

About the Author

Campbell D. Ferguson, FRICS, has been advising buyers on what’s real and what’s not for more than ten years on the Costa del Sol and for 40 years throughout the UK and Europe. Find out more at Survey Spain Network.

Spanish inheritance law

Thank you to Raquel at Perez Legal for the following information. Raquel has kindly provided some of this previously but this is the most complete and up -to-date and supersedes all other inheritance tax information published on this blog.

Inheritance issues are something you may not want to think about, but you should plan ahead especially when you own any assets outside your home country.

This is a brief overview of certain facts and figures related to Spanish inheritance law and tax.

Foreign nationals enjoy free disposition of their assets in Spain

A foreign national can make a Spanish will leaving his Spanish estate to any person of his choice. The Spanish Registrar will accept its terms and, when the time comes for the will to be executed, the inheritors can take possession of their new property.

In practice, the authorities do not ask if the testator is an official resident or not. They accept the Spanish will as valid. The only requirement enforced by Spain is the payment of Spanish inheritance tax, which will be different for residents and non-resident inheritors.

Not leaving a will

If a foreign national dies in Spain without a will, his estate in Spain will automatically be distributed according to the prevailing Spanish laws of inheritance.

If, for instance, a husband and wife own a house 50% each and they have 3 children, the surviving spouse will continue to own half the house as their name is on the title deed as half owner already. The other half of the house constitutes the inheritable estate.

Under the standard state laws, the estate will be divided equally among the 3 children. When the estate is settled, each child will have a one-third title to half of the house, meaning that each one now owns one-sixth of the house, and the title deed has four names on it – that of the widow and each of the 3 children. The widow also holds a usufruct right on the children’s share, which means that she can use their half of the property until she dies, as well as her own half.

In practice this means all parties must be in agreement and sign the deed before the house can be sold.

Dying without a will can result in time consuming and expensive legal procedures for your survivors, so if you want to make sure they are taken care of and if you have definite ideas about how you want your estate distributed, you should prepare a Spanish will. It’s a very easy and inexpensive procedure that ensures you control the process and can have complete peace of mind.

Costs and fees associated with a Spanish will

The normal cost would be between 160 euros up to 250 euros, depending on the lawyer’s fees. In addition to this, you should count on Notary fees of approximately 50 euros.

Your lawyer will prepare your will as a double-barrel document in English and Spanish, and will take it to the Public Notary Office in order that you can confirm your identity (with a passport) and sign the will in front of the Notary. Unfortunately, no one can substitute you in the signing of a will, so it will have to be done in person.

Advantages of signing a Spanish will

There are several key points to bear in mind:

1. It is advisable to make a Spanish will disposing of your Spanish assets in order to avoid time consuming and expensive legal procedures for your heirs. Make a separate will to dispose of assets outside Spain.
2. You will be exempt from the Spanish law of compulsory heirs, according to which you are automatically obliged to leave two thirds of your estate to your children. Instead, a personal will allows you to leave your estate to whomever you choose, and apportion it as you see fit.
3. You can plan ahead your Spanish inheritance tax. Spanish law provides exemptions for family members such as spouses and children. As a result, there is a tax deduction of 16.000 euros for the surviving spouse and approximately 11.000 euros for the children.
4. If you are an official resident in Spain, leaving your property to a spouse or child that is also a resident can result in a reduction of 95% in inheritance tax. It is, however, an advantage that is not available to non-residents, and the reduction is applied to the first 175.000 euros of value.

Does my will in my home country cover my Spanish assets? 

Foreign wills can be probated in Spain, but there are a number of steps that must be followed, and they are complicated.

If you have lived in Spain for a long time, you will need to review your legal domicile in your home country.

Your lawyer back home will need to prepare a letter of intent on your behalf, confirming that even though you hold a Spanish residence permit now you intend to return to your home country eventually.

Setting tax values

Another issue is obtaining the official value of assets of different nature, such as real estate, personal belongings, automobiles, stock and shares, life insurance or bank accounts. All of these are necessary to make the Inheritance Tax declaration. They are obtained from different sources and subject to individual tax scales.

Offshore companies

For non-Spanish citizens, the incorporation of an offshore company in order to own real estate has been a much-used way to avoid inheritance tax.

When the founder of the company dies, he leaves his shares in the company to whomever he chooses by means of a will made outside of Spain. However, as far as Spain is concerned, the same company continues to own the property and no transfer has taken place (which means there is no need to pay transfer tax or capital gains tax), yet such companies are liable for a special tax on property held by corporate entities registered in tax havens. This tax is normally 3% of the value of the property and is payable once a year.

Four-year limit

There is a statute of limitation on inheritance tax and it is 4 years. This means that the state cannot collect inheritance tax more than four years after a person’s death. If the deceased’s will is lost during this period and found and presented by the inheritors after the four-year period has lapsed, it can be possible to apply to re-register the property free of inheritance tax.

Spanish law requires that inheritance tax should be declared within six months of the date of death. If an inheritor is found tampering with legal material in the manner described above, they can be subject to a surcharge of 25% on the tax due, or even higher penalties. This six-month period is then added to the statute of limitations of 4 years so in reality its 4 years and 6 months.

Gifts

While it is also possible to give pre-inheritance gifts while you are alive, this does not provide any form of exemption from inheritance tax, as such gifts are governed by the same conditions as inheritance itself.

How to minimise your inheritance tax liability.

A lot of people think that having a Spanish will in place means there will be no tax to pay. Although this is unfortunately not the case, having such a will saves a great deal of trouble, expense and, if done properly, can reduce the tax bill significantly.

There is no one-fits-all solution, it depends on individual circumstances, but some alternatives are:

• Incorporating a Spanish company.
• Incorporating an Offshore company.
• Or becoming a resident in Spain. If this is your preferred option, you should hold an official residence permit for at least 3 years. The home you live in will be your official residence and you must have lived in it for at least 3 years. Officially, your inheritor must undertake not to sell the property within a 5-year period, though this is not enforced in practice

Get the facts right

• In Spain, death certificates must be applied for within 24 hours otherwise the application will be more difficult.
• All inheritors must apply for a NIE number and will have to give power of attorney to the Spanish lawyer representing them to arrange it.
• A lot of people don’t plan ahead and make it difficult for their inheritors to find documents such as title deeds to produce to the authorities in time, yet the law requires the inheritance tax to be paid within six month’s of the date of death.
• The deceased’s bank accounts will be frozen until the will’s conditions are satisfied and inheritance tax is paid.
• After the inheritance title deed is registered (within 30 days of payment of the tax and presentation to the Registrar Office), the Plus Valia tax will have to be paid to the town hall. This sum depends on the number of years that have passed since the last sale of the property.
• Inheritance Tax is payable to the central government in Madrid.
• If you don’t process the change of ownership of the property in the name of the new inheritors, they will not be able to rent or sell your property, and it is in danger of remaining in limbo for a long time.

Tel: +34 952 833 169

info@perezlegalgroup.com | www.perezlegalgroup.es

Spain in Figures 2012

Spain in Figures 2012

The National Institute of Statistics have released their annual publication Spain in Figures.

The document is designed to give interested parties a general and updated perspective of Spain. This publication is informative and direct, and provides statistical information regarding Spain and its status in Europe.

Spain in Figures contains information relating to population, health care, employment, industry, energy and more and gives a great insight.

For those who don’t have time to read the complete report (58 pages) here are some points that I found interesting.

• In 2009 Spain produced 8% of the total air pollution in the EU. 25.7% of that was generated by transport.
• 2011 was the warmest year in Spain for 40 years with an average temperature of 16°C.
• In 2009 Spain generated 24.8 million tonnes of urban waste, 5.9% less than in 2008.
• On January 1^st 2011, The population of Spain stood at 47.2 million.
• 12.2% of the population registered in Spain in 2011 was foreign, this figure reaching 5.7 million persons, 0.1% more than the previous year.
• 62,611 Spaniards moved abroad in 2011.
• In 2011 Spain received a total of 56.7 million international tourists, representing an interannual increase of 7.6%.

You can download the report in chapters, or in one document, from the INE website: Spain in Figures 2012

Importing an animal into Spain

In response to some questions being posted regarding moving to Spain, my friends at Perez Legal have kindly prepared the following for you.

Bringing your pet into Spain is not straight forward. It’s important to get the paperwork right before you leave.

“What, the flight is how long?”

If you plan to take a pet to Spain it is important to check the latest regulations. Make sure that you have the correct papers, not only for Spain, but for all the countries you will pass through to reach Spain. Particular consideration must be given before exporting a pet from a country with strict quarantine regulations, such as the UK.

Spanish regulations

All dogs, cats and ferrets must have a microchip or registration number tattooed in an ear before they enter Spain. A rabies vaccination is usually compulsory, although this does not apply to accompanied pets (including dogs and cats) coming directly from the UK. However, if a rabies vaccination is given, it must be administered not less than one month or more than one year before export. A rabies vaccination is necessary if pets are transported by road from the UK to Spain via France. Pets over three months old from countries other than the UK must have been vaccinated against rabies not less than one month and not more than one year before being imported. If a pet has no rabies certificate it can be quarantined for 20 days.

Pets under three months old cannot be imported into Spain

An official certificate is required, which must be filled in and signed by a vet. The certificate includes the owner’s details, a description of the pet, the microchip number and where and when it was inserted, and the date of the rabies vaccination. The certificate is in Spanish and English and is valid for four months from signing. The certificate can be obtained from Spanish consulates abroad or downloaded from www.mapausa.org.

Some animals require a special import permit from the Spanish Ministry of Agriculture and pets from some countries are subject to customs duty.

British regulations

The Pet Travel Scheme replaces quarantine for qualifying cats and dogs. Under the scheme, pets must be micro-chipped (they have a microchip inserted in their neck), vaccinated against rabies, undergo a blood text and be issued with a health certificate (pet passport). Note that the pets certificate/EU pet passport is sometimes not issued until six months AFTER the above have been carried out. In the UK, EU pet passports are issued by Local Veterinary Inspectors (LVI) only. In other EU countries, passports are issued by all registered vets.

The scheme is restricted to animals imported from rabies-free countries and countries where rabies is under control. However, the current quarantine law will remain in place for pets coming from Eastern Europe, Africa (including the Spanish enclaves of Ceuta and Melilla), Asia and South America.

To qualify, pets must travel by sea via any major British ferry port, by train via the Channel Tunnel or via Bristol, Doncaster, London Gatwick, London Heathrow or Manchester airports. Only certain carriers are licensed to carry animals and these are listed on the website of the Department for Environment, Food and Rural Affairs (DEFRA).

The regulations cost pet owners around 200/300 pounds (for a microchip, rabies vaccination and blood test), plus 60-90 pounds a year for annual booster vaccinations and around 20-30 pounds for a border check.

Shop around and compare fees from a number of veterinary surgeons. British pet owners must complete an application for a Ministry Export Certificate for dogs, cats and rabies susceptible animals (form EXA1), also available from DEFRA.

DEFRA will contact the vet you have named on the form and he performs a health inspection. You then receive an export health certificate, which must be issued before your pet enters into Spain.

Tel: +34 952 833 169

www.perezlegalgroup.es

Long term unemployment up 43% in 2011

The number of people that have been unemployed for three years or more increased 43.0% in 2011, according to new figures released by the National Statistics Institute (INE).

Most Spanish workers had a boss but no subordinates in the year 2011. According to the results of the subsample variables of the Economically Active Population Survey, seven out of 10 workers were in this situation, since they had jobs as employees (with a boss and without subordinates).

9.9% of the total employed persons in 2011 were independent workers (without a boss or subordinates); 6.6% were managers; 7.0% were directors of small companies, departments or branches; 5.7% were middle managers, and 0.8% were directors of large or medium-sized companies.

The percentage of employees remained the same with regard to 2010, that is, at 69.8%, whereas the percentage of managers decreased two tenths.

By sex, the percentage of male directors at least doubled the percentage of female directors, in all company sizes. In the case of the employee job, the percentage of women (77.6%) exceeded the percentage of men (63.4%).

Working conditions

92.6% of the persons employed in 2011 did not work any day in their home. 2.7% did so occasionally, and 4.0% worked from home on over half of their working days.

One in three persons (35.0%) worked at least one Saturday per month, one tenth more than in 2010. For 62.5% of employed persons, Saturday was not part of their working week in 2011.

Working on Sundays was again less customary. 78.6% of employed persons did not work any Sunday. In turn, 4.3% worked one Sunday a month (two tenths more than the previous year) and 15.9% two or more Sundays (five tenths more).

12.2% of employed persons worked the night shift (11.6% in 2010). 6.1% did so occasionally, and 6.1% on more than half of their working days. The percentage of male night shift workers (14.6%) surpassed the number of female night shift workers (9.3%).

Considering the type of hiring, the percentage of wage earners hired though a temporary employment agency (TEA) decreased from 3.0% to 2.7% in 2011, whilst 2.5% found employment through the intermediation of a public employment office (one tenth more than in 2010).

Dependency

A total of 359,500 persons worked part-time, for the purpose of having more time available to care for dependent persons in the year 2011, which were 0.6% less than in 2010.

Almost the entirety of those working part-time, in order to simultaneously work as carers, were women. 55.9% of them were of the opinion that there were not adequate services for caring for dependants, or they were unable to afford them.

Unemployed persons

The majority of unemployed persons were previously employed. In fact, for 52.1% of them, the main reason for having stopped working in the year 2011 was the end of the contract.

The number of unemployed persons who left their last job three or more years ago increased 43.0%, reaching 704,900. This figure accounted for 15.4% of the total unemployed persons, 3.9 points higher than in 2010.

You can download the full report here: Economically Active Population Survey – Subsample variables Year 2011

Wealth and Income Tax in Spain – 2012

As you may know, every year any non-resident owning property in Spain is obligated to submit a Property Imputed Income Tax declaration and now, after being reintroduced, the Property Wealth Tax.

Perez Legal Group can assist you in this obligation by providing you with the Fiscal Representation Service, consisting on the following:

• Calculating the tax due on the basis of the ratable value and the number of days of ownership (if you bought or sold last year), ensuring you do not pay more than strictly required.
• Filling out the forms with your personal and property information.
• Submitting to the tax office our appointment as your fiscal representatives in Spain, thereby assuming the responsibility of receiving any formal communication and acting timely upon them.
• Representing you during the fiscal year in respect of any communications which we may receive from the Tax Office.

We are happy to announce that our fee for this year has been reduced considerably for we are now charging a fee of €95 plus VAT.

In order for us to calculate the total tax liability, we would need to know the following for your properties:

• Ratable Value on the last IBI receipt. This is shown on the IBI (Impuesto de Bienes Inmuebles-Council Tax) receipt under the name of “valor catastral” and we require this from you, should you have it, given that this bill is typically paid via bank standing order. Please note that new properties (less than 2 years) might not have a ratable value assigned yet.
• In case you rented, number of total days you have rented out the property (if applicable and only if such rental has been declared, an unlikely scenario, in our experience).

First of all, we would need to know if you or any of the people who purchased jointly with you (where applicable) were Spanish residents or not. In such cases, these people would not be liable.

Also, for every non-resident tax-payer we would need to know the full details of any other properties they might own in Spain which we are unaware of, together with the ratable value and the number of days the property has been rented (where applicable).

Upon receiving this information we will let you know the total tax liability for the tax payers. If you don’t have the last council tax receipt but you have a one corresponding to a previous year we can still obtain the updated ratable value. If you don’t have one at all we will get it for you.

In case you are resident, we will be able to prepare your Income Tax Declaration at the fee of 80 Euros plus VAT. This should be filed before the 30^th of May 2012.

PLEASE NOTE THE FOLLOWING: You should know that until now, if a debt were contracted with the Treasury in Spain by a Spanish foreigner, the Spanish Tax Authorities had to meet many issues before they could act against foreigners residing outside of Spain.

However, a ministerial order of July 31, 2010 has set out within European territory that any foreign debt will allow the Ministry of Finance, electronically, to make reports of foreclosures and repossessions of property situated in other states of the European Union in order to meet debts incurred in Spain.

The European Union tax system agreed that the Tax Authorities will facilitate information and will report about the state of any debtor and guarantors of a debt in order to make feasible the placement of an embargo on Spanish properties or properties located in England and other European Union country, taking the necessary legal measures to ensure these debts are paid against the property, Bank accounts will also be considered.

This procedure will not be used to satisfy all different types of debts but those contracted with the IRS for non-payment of Value Added Tax (VAT), Income Tax of Individuals (income tax), Wealth Tax and other excise duties.

To facilitate this process, the Ministry of Finance will have the cooperation of other agencies such as the Labor Inspectorate and the General Treasury of Social Security (TGSS), guaranteeing the confidentiality and security of citizen data information.

For more information or for assistance with your tax declaration contact Perez Legal Group using the details below.

Tel: +34 952 833 169

www.perezlegalgroup.es

The Catastral – the record of a Spanish property

Anyone who either owns or is planning to buy property in Spain needs to know about the Catastral value of the property (or Cadastre to use the French term).

Unlike the Land Registry, which records legal ownership and with which it is often confused, the Catastral is not a legal record of ownership, but is an estimate of the capital value of the property, which is used as a base figure for a number of property taxes. The easiest way to find the Catastral Value of a property is to check the amount listed on the IBI (local property tax) invoice or to visit the Catastral office in the town hall. However, note that the value should only be given to someone who can show a registered interest in the ownership of the property or their representative, which can make comparison with your neighbour’s difficult.

The value is drawn up by independent government employees using strict and complex valuation guidelines to ensure consistency. Initially, they depend upon a description of the property and its use, which is obtained by observation, licence applications and increasingly, studies of aerial photos. As the Catastral description lists the best estimates of the site’s registered boundaries, obtained from historical records, title deeds, agricultural ‘parcelas’, planning applications and any other source where change has been detected, it can be one of the more reliable sources of information and help to settle boundary disputes and the like. However, it is by no means infallible as it will not catch all extensions and changes, ranging from integral garages to bedrooms, structural problems, and the many other alterations that can be made to a property and that affect its value.

The ‘construido’, gross overwall external floor area is used, with allowance for open-sided covered areas being calculated at 50% and areas under 1.5m high being ignored. This can differ substantially from the ‘util’ or net internal floor area, which is an internal measurement used in construction and excludes external walls and certain other items.

Since the details used in the Nota Simple and the Catastral are obtained in different ways, it is not unusual for variations between these property descriptions to occur. The most frequent problem found here is that the Land Registry is compiled at the point of construction and it is a legal nicety that the sizes recorded are given by ‘declaration’ and are not guaranteed or checked by the Registrar or Notary or other independent body. Also, changes to the property thereafter are often not noted, which can also affect the Catastral records where there can also be discrepancies due to human error or failure to update information.

After the size and nature of the property are determined, a rate per square metre is applied to it. This rate is an estimate of the sale value of the property, calculated from actual registered sales and other property information. Naturally, this information has to be reviewed every few years in order to keep the comparative values of neighbouring properties relatively accurate. This is done on a municipality by municipality basis, so that all neighbouring properties are valued in a similar way. Unfortunately, this can mean that values of a few years ago can become the basis for a Catastral value that may not bear any real relationship to the current value of the land and property. This is certainly the case in Estepona where values have been based on sales in 2007, when prices could be up to twice what they are now. In the past, when sale values have been increasing over the years people have been less disturbed at the low Catastral values.

However, the main concern should not be the individual Catastral value, but its relationship to those of its neighbours. This is where consistency is essential so that everybody is treated in the same way. Equally, the level of value is really of little importance as it is the multiplier that is applied, by politicians and tax authorities, that decides how much actual monetary value it has. The Catastral value is used for calculating capital gain on a property when it is sold and also for the amount of IBI or local property tax that an owner has to pay each year.

It is possible to appeal the Catastral value of a property, but only at the time of revaluation. The timescale is short and the methodology is complex, so that unless there are gross errors it can often just add more expense without an effective result.

When purchasing a property it is important to have sight of both the Land Registry and the Catastral records to ensure that any errors are noted and corrected. If this is not done, it can be that the buyer will be responsible for obtaining licenses and/or paying fines for unauthorised works or even for changing the property back to its former legal state. Whilst conscientious solicitors may endeavour to assist the client in this way, a member of the Survey Spain Network of Chartered Surveyors will often be the only one to compare the size and use of the actual property to the recorded descriptions on the Nota Simple and Catastral records. Differences in these records to the actual building are often a means of identifying potential problems of ownership and/or legality. With this knowledge the potential buyer can then instruct his or her lawyer to ensure that corrections are made prior to purchase and at the cost of the seller.

Addendum: The Spanish tax authorities have announced that they intend to review 4.2 million Catastral values this year throughout Spain. That will almost certainly add to the value and increase to the likelihood of IBI and other property related taxes being raised.

Article courtesy of Campbell D. Ferguson, FRICS. Chartered Surveyor in Spain. www.surveyspain.com

Inheritance Tax‏ in Spain

Many people have been in my office, asking me what happens when a person dies in Spain, as far as their assets are concerned. Some were inheritors and others were trying to make things as easy as possible for their heirs when the day finally comes.

For most people, they want to make things as easy as possible for their heirs and a Spanish Will is the first step in the process. Many people think about making a Will but never actually get round to doing one.

Whatever people say to you regarding these three possible situations, there is a simple solution. A client told me the other day that he thought that the Spanish government would take everything if there was no Will. This is not the first time I have heard this rumour and it is totally unfounded.

There are three possible situations:

1. You have a Spanish Will
2. You only have an English Will or
3. You do not have a Will

1. The deceased person has made a Spanish Will

A. Some documents must be gathered

• The original death certificate. If the testator died in Spain, we have to apply for a Spanish death certificate, but if the testator died in England, the death certificate will need the Apostille affixed (Hague’s Convention). It will also need to be translated by an official Spanish translator, or by the Spanish Consulate in England.
• We also need to write to the “Registro de Últimas Voluntades” (Register of last Wills) in Madrid on your behalf so that they certify that a Will was made, that the Will in question was the last one and which Notary has the original documentation. Even if you already have a copy of the Will, we must write to the Register, so that they can certify that there is no other Will with a later date. Most solicitors have a collaborating firm lined up in Madrid to avoid the procedure by post which tends to be lengthy. In our case, we can obtain certification within two weeks.
• Gather the original escrituras de compraventa (title deeds) and bank account details. If you cannot find the deeds, do not panic, a certificate from the property register can be obtained and will work just as well.
• Your last Patrimonio declaration. If you have never made one, a written declaration to the effect of not having an estate worth more than 500,000 Euros.

B. You must have an acceptance document drafted, which must be signed in front of a Spanish Notary, exactly the same as when you are purchasing a property in Spain.

C. You then have one month to pay the inheritance tax or claim part or total exemption depending on your situation. The tax has to be paid in Madrid if both the deceased and the heirs are non-residents. If any of the people involved is a resident then one can present the forms at the local tax office. If the heirs are group 1 or 2 (spouses or direct descendants) there is a major benefit of Andalucían Jurisdiction (which you can only claim if the deceased or one of the heirs are residents in Andalucia and can prove it). The benefit consists of an exemption rate of 125,000 Euros for each heir instead of 16,000 Euros for each heir.

D. As soon as the Inheritance Tax has been paid or the exemption is claimed, you can go to the bank where the deceased person held his/her money and the bank will release the money to the person the Acceptance Escritura confirms has inherited.

When this is done, you must deal with whatever property you may have inherited. You must go to the property register and ask to register the Escritura of acceptance (In the same way one does when purchasing a property with the purchase escritura). It will take approximately one month for the register to be handed over to the registered title. After this deed is completed, plusvalia needs to be paid to the Town Hall to which the property belongs.

2. The testator has made a Will in England, which refers to his / her assets and properties worldwide

A. You must obtain the Grant of Probate in England. You must then get the Hague’s Apostille affixed and send it to an official translator in Spain, or to the Spanish Consulate in your home country. (If the English Will mentions the word “trust”, then you have a problem, as trusts do not exist in Spain).

B. You must take the same steps as if the translated document is a Spanish Will.

3. The deceased person has not made a Will.

A. If the deceased person is English, his heirs should appoint an English solicitor, who will need to obtain letters of Administration in England. You then need the Apostille affixed. Next, the document needs to be translated by the Spanish Consulate in England, or by an official translator in Spain.

B. Then we take the same steps, as if the translated document is a Spanish Will.

IMPORTANT THINGS TO REMEMBER

• From the moment of death, the heirs have a maximum of six months to pay the death duties. If you do not think you can sort things out within that time limit, you can ask for a 6 month extension, but you must ask for it in writing, within the first five months.
• Any document signed by an English public official will need the Apostille affixed before it is valid in Spain.
• Any document that is written in English will need to be officially translated, before it is valid in Spain (Consulate or official translator).
• The information I have provided is only a guideline and in no way substitutes my legal advice for your own particular situation.

There is no doubt that the best situation is to have a Will in your country of origin concerning your home assets and one in Spain for your Spanish assets. This will avoid a heavy legal bill later on and save a lot of time and distress.

In the absence of a last Will and testament, you will need judicial or notary documents declaring you are a legitimate heir and provide evidence of the laws of the late person’s country of origin in order to justify your claim to the inheritance. These documents, together with the rest of the papers required to formalize the inheritance, will then be taken to a Notary to allocate the inheritance.

By Raquel Perez

NIE Numbers and why they are important

Spanish Residency Form

If you have recently moved to Spain or are planning to purchase property here it is vital that you apply for an NIE number. The NIE (or Número de Identidad de Extranjero to give its full title) is an essential piece of paperwork, since it registers the holder for tax purposes and must be obtained before the deeds of purchase (known in Spain as the escritura) are signed. Indeed, its essential to have an NIE to buy anything of significance. The good news is that it is a fairly straightforward process and once you have obtained your NIE you will find it useful in all manner of situations!

You can apply for this document at the immigration office at one of the designated police stations. Most towns with significant foreign populations will have such a facility, along with resident translators to assist the process for non-Spanish speakers. Once you have submitted your application you will be given a receipt that you will need to bring with you when you return to collect your NIE certificate – usually about two weeks later.

When you apply for your NIE number these documents will be needed:

• Your passport, plus a photocopy of the main page
• Two recent passport-sized photographs
• Any documentation that includes a reason for the application. For instance, if you are in the process of buying a house, bring with you a copy of the escrituraor deed of sale. This might be deemed unnecessary, but it will help to offer this additional information.
• Two completed copies of the application form Solicitud de NIE (Ex-15).

You will be able to fill this in at home by following this link (http://www.interior.gob.es/modelos-de-solicitud-37/extranjeria-342 ), downloading the appropriate document and printing it .

Recent changes to NIE procedure

Previously, it was possible for foreign property purchasers and immigrants to request that a lawyer or gestor (a clerk who is experienced in acting as a conduit between the client and all aspects of the Spanish bureaucratic system) handle the process. However, new legislation that was brought in at the beginning of 2012 means that every applicant must apply for the NIE in person.

There has also been some confusion of late about the status of the NIE certificate, which itself is only valid for three months, however the NIE number allocated remains with the applicant for life. This has unfortunately led to some so-called experts stating that NIE numbers have only a very limited shelf life, which is totally untrue.

However, for those planning a more permanent stay in Spain, it might be more sensible instead to register as a foreign resident. One of these certificates (Certificado de Residencia), which have replaced the old style residency cards, can save time in the long run.

In order to do this you will need to fill out an Ex-18 form which you can print out from the following address: http://extranjeros.meyss.es/es/ModelosSolicitudes/Mod_solicitudes2/18-Certificado_Residencia_comunitaria.pdf.

by Campbell D. Ferguson

About the Author

Campbell D. Ferguson, FRICS, is a chartered surveyor in Spain. His company, Survey Spain Network arranges valuations and surveys by RICS chartered surveyors anywhere in mainland Spain and the Balearic and Canary Islands, and Gibraltar. This includes valuations, building surveys, structural surveys, building inspections and investment and development appraisals.