If you own a property in Spain and have other assets in Spain it is an expensive and slow procedure to have your UK will recognised in Spain. If you die without leaving a Will, then under Spanish Law all assets will be applied under Spanish Law. This differs from country to country and it may be more beneficial to have your assets dealt with under the laws of your Nationality (i.e UK). For someone who has property and other assets in the UK this may be beneficial to you (but really important to obtain professional advice first before any changes are made).
Types of Spanish Wills
This is the normal will most people in Spain adopt. It has to be made before a Notary who keeps the original document and sends notification of the Will to the Central Registry in Madrid. The client is given a copy.
This type of will is handwritten. It must be signed and dated on each page by the Testator and then verified before a judge. The Deceased’s closest relatives must verify the deceased’s handwriting and afterwards a Judge will enforce the provisions of the Will
With a Closed Will all details of the Will are kept secret by sealing them in an Envelope. The Testator declares before a Notary that the will has been declared by the Testator and sealed in the envelope. Confirmation of whether it has been written by a 3rd party or the Testator and who has signed it. This is then filed by the Notary and is registered with the Central Registry of Spanish Wills.
Depending upon which will you choose and whom you use, costs are as low as 40 euros to over 500 euros. A simple Open Will can be declared in a local Notary office at a cost of 40 euros per will.
Liberty Funeral Plans: Cover for a funeral plan with Liberty can be as low as 10 euros a month (depending upon where you live in Spain) and includes a Will (all costs borne by Liberty – plus Notary Costs). If you haven’t thought about a Funeral Plan yet, it can also sort out your Spanish Will too!
LIFE INSURANCE AND HOW TO MINIMISE INHERITANCE TAX ISSUES
Inheritance Tax is an issue which leaves us very confused, but if we own property and assets whether in Spain and/or in the UK professional advice should be sought to minimise the financial damage it can cause to those left behind. One of the way to minimise IHT is to take out a life insurance policy so that in the event of death the proceeds of a life insurance policy can be paid out and used to settle an Inheritance Tax bill.
Even to have some cover in the event of such a tragedy is important. Life Insurance in Spain has been seen to be expensive but for 150 euros a year for Death and Disability cover the following benefits are available:-
COST 150 EUROS A YEAR
(CAN BE PAID MONTHLY) DEATH & DISABILITY COVER
Age 30: cover of 156,320 euros
Age 40: cover of 85,079 euros
Age 50: cover of 33,757 euros
Age 60: cover of 14,124 euros
Age 70: cover of 11,327 euros
For policies with cover up to 60,000 euros, the underwriting process is a very simple questionnaire with only 3 questions, hence the underwriting process is very fast and straightforward.
If you require a personal quote do let us know.
INHERITANCE TAX – ANDALUCIA IS BECOMING A LOW TAX REGION
ON 11 April 2019 there was a big change on inheritance and gift tax in the Andalucia region of Spain. Inheritances and gifts between spouses, parents and children will now have a 99% reduction of the total tax payable.
The previous 1m deduction per beneficiary also remains so that most taxpayers will not pay any tax at all.
For detailed information about the Andalucian tax laws please go onto www.spenceclarke.com. Well worth a read. They also have lots of information on other tax issues, general income tax, Capital Gains etc. Everything is in English on their website. They post really useful updates too on a regular basis so a helpful and reliable source of information for clients and businesses alike.
UPDATE ON NEWS FROM ENERGY NORDIC – EXPANSION INTO BALEARIC ISLANDS
Want to save money on electricity bills, try Energy Nordic, they have now expanded into the Balearic Islands as well as the whole of mainland Spain, their growth over the last year has been huge due to their competitive rates, ease of change of supplier and customer service. Everything in English too.
Want to see if you can save some money on your electric bills? Send us your latest bill with contact details and we will ask the question for you, no obligation to change. Its not often we find a genuine supplier able to save us money on a service we cannot do without. Simple changeover and no tie in period of contract. Lots of happy customers with lower bills!
CALL EUINSURANCE DIRECT ON 952830843/951080118 OR MOBILE 635592610
SPEAK TO WENDY OR ASHLEY OR EMAIL