If you have any assets in Spain, either a house, money in bank accounts, financial products, cars, etc…it is essential to have a Spanish will, where you appoint your beneficiary and, ideally, who would be the substitute in the event the beneficiary passes away before you.
The will may cover Spanish assets only or your worldwide assets. The decision on what to cover needs to be analysed on a case-by-case basis and according to your circumstances.
Since 2015, a European Union Regulation (R 650/2012) came into effect, if you are resident in Spain at the time of your death, Spanish law applies to your inheritance, unless you specify in your will that you wish your national law to apply.
Please be aware that, under Spanish law, there are strict limitations about who may you appoint as inheritor, as family takes precedent.
That is why, if you are British, it is advisable to choose your national law to apply, as that allows you freedom of choice of beneficiaries.
A question that often arises since the confirmation of Brexit is if this freedom of choice still applies, and the answer is very simple: yes, it does.
Even though the UK is out of the European Union, if you are British and resident in Spain the regulation stays valid for every resident in Spain.
Accordingly, if in your Spanish will you have chosen your national law to apply, you keep the freedom of choice of beneficiary.
Should you wish to make a will, or have queries on inheritance tax regulations, do not hesitate to contact us, as we are specialists in this area.