International Context

The Importance of Planning Ahead in an International Context

Administering an estate with an international element presents particular challenges that are not always considered during one’s lifetime. In the absence of a will executed in Spain, heirs are required to coordinate actions across different jurisdictions: obtaining documentation abroad, legalisation or apostille in accordance with the Hague Convention, sworn translations and, in certain cases, additional procedures to prove their status as beneficiaries or heirs.

This set of requirements not only increases costs but also introduces uncertainty in terms of timing. In the Balearic Islands, Inheritance and Gift Tax (Impuesto sobre Sucesiones y Donaciones) must be settled within six months of death, requiring an organised and diligent approach from the outset. Coordinating international procedures within this timeframe is not always feasible without proper prior planning.

Legal Instrument

The Spanish Will as an Instrument of Estate Organisation

Even where a testator has already executed a will in their country of origin, it is highly advisable to execute a specific will in Spain covering assets located in this territory. This approach allows the scope of the succession to be clearly defined and enables assets in Spain to be managed independently, avoiding unnecessary reliance on foreign documentation.

Spanish law provides for various types of wills; however, from a practical perspective, the notarial open will is the most appropriate option. Execution before a notary ensures that the contents accurately reflect the testator’s wishes, as well as guaranteeing validity and enforceability.

The process is efficient and carried out in a single appointment. In the case of foreign testators, bilingual formats are commonly used to ensure full understanding of the document. Once executed, the will is registered in the Spanish Central Registry of Wills (Registro General de Actos de Última Voluntad), ensuring it can be located when required and eliminating future uncertainty.

Real Impact

The Difference Between Planning and Not Planning

Professional experience clearly demonstrates the consequences of proper planning. In a recent case handled by the firm, the deceased, a foreign national, had executed a will in Spain in advance.

Conversely, in the absence of a Spanish will, the process is often dependent on external factors, leading to delays, increased costs and a considerable administrative burden for heirs at a particularly sensitive time.

Benefits

Practical Advantages: A Decision with Real Impact

From both a legal and operational standpoint, executing a will in Spain offers clear benefits:

• It allows the estate to be structured with foresight and coherence.
• It facilitates a more efficient and orderly succession process.
• It significantly reduces the need for complex international procedures.
• It minimises the risk of delays affecting compliance with tax obligations.
• It reinforces legal certainty at a moment of particular personal and financial importance.

Ultimately, this is a preventive decision that avoids future contingencies and brings stability to the overall succession process, with a direct impact on how the estate is administered.

Tax Considerations

Tax Implications and the Need for Prior Analysis

Succession planning is not limited to the legal structuring of assets; it also has a direct impact in the tax sphere. In the Balearic Islands, depending on the specific circumstances of each case, Inheritance and Gift Tax may be very low or, in some cases, nil.

However, this outcome is not automatic and requires a tailored prior analysis in order to properly assess the relevant variables and take appropriate decisions in advance.

Our Approach

Planning and Specialised Advice

The proper structuring of an international succession requires a technical approach tailored to each situation. The testator’s nationality, the location of assets, the structure of the estate and personal and family circumstances must all be considered together.

A will should not be viewed merely as a formal act, but as a planning tool that enables the estate to be organised clearly, reduces uncertainty and facilitates future administration.

Addressing this matter in advance allows informed decisions to be made and avoids transferring the burden of managing a complex situation to others.

In an increasingly international environment, planning ahead is not an option but a strategic decision. Having an appropriate will in Spain is, in many cases, the difference between a smooth and orderly process and one that is complex and uncertain.