Inheritance of Property in Tenerife, Canary Islands.
Inheritance in Spain, especially in the Tenerife, can be a complex process for foreigners. Spain has specific inheritance laws that differ from those in other countries, and these laws can be even more nuanced when it comes to property located in autonomous regions like Tenerife, Canary Islands. This guide provides an overview of the key considerations for foreigners who are inheriting property in Tenerife and the Spanish archipelago.
1. Understanding Spanish Inheritance Law
Spain operates under a civil law system where the rules of succession are largely codified. Inheritance in Spain is governed by the Spanish Civil Code, but each autonomous region, including the Canary Islands, has its own set of supplementary regulations. These can influence the process depending on whether the deceased was a resident in Tenerife, Canary Islands or if the property in question is located there.
Key points of Spanish inheritance law:
Forced Heirship: Spain follows a forced heirship system, meaning that a portion of the estate must go to certain heirs (such as children or parents) by law. This is in contrast to the common law system in countries where a will can typically dictate the entire estate's distribution.
Spouses and children: In the absence of a will, the estate is divided among the surviving spouse and children. If there are no children, other relatives such as parents or siblings may inherit.
2. Specifics for Foreigners Inheriting in the Canary Islands
For foreigners, inheriting property in Spain can be further complicated by international laws and bilateral agreements. Here are some specific considerations for those inheriting property in Tenerife, Canary Islands:
Applicable Law: Under EU Regulation No 650/2012 (also known as Brussels IV), if the deceased was a foreigner residing in Spain at the time of their death, the inheritance law of their country of nationality may apply, unless they had chosen Spanish law in their will. This choice must be explicitly stated in a will or similar legal document.
Taxes: The Canary Islands have their own inheritance tax regime, which is generally more favorable than in mainland Spain. However, the amount of tax due depends on several factors, including the relationship between the heir and the deceased, the value of the property, and the heir’s existing wealth. Non-residents may face different tax rates compared to residents.
Succession Rights: Foreigners need to be aware that if the property is located in the Canary Islands, the local laws and regulations regarding property rights and succession will apply. This can include specific rules on how property is divided among heirs and the rights of surviving spouses.
3. The Inheritance Process
The process of inheriting property in Tenerife, Canary Islands involves several steps:
Obtaining a death certificate: This is the first legal document required to begin the inheritance process.
Will or intestacy: If the deceased left a will, it must be validated. If there is no will, Spanish intestacy laws will apply.
Acceptance of inheritance: The heirs must formally accept the inheritance. This involves signing an acceptance document, which may include accepting debts along with assets.
Paying inheritance tax: Before the property can be transferred, the applicable inheritance taxes must be paid. In the Canary Islands, there may be reductions or exemptions available for close relatives.
Registration of the property: Once the inheritance is accepted and taxes are paid, the property needs to be registered in the name of the heir(s) at the Land Registry.
4. Practical Tips for Foreigners
Legal Assistance: Due to the complexity of Spanish inheritance law, it’s advisable for foreigners to seek legal assistance from a lawyer who specializes in inheritance law, particularly one familiar with the laws in the Canary Islands.
Language Barriers: All official documents related to inheritance must be submitted in Spanish. If you’re not fluent in Spanish, it’s crucial to work with a translator or a bilingual lawyer to avoid misunderstandings.
Time Frame: The process of inheriting property can take several months, especially if there are disputes or complications with the will or the heirs. Start the process as soon as possible to avoid penalties, particularly with regard to tax payments.
Inheriting property in the Tenerife as a foreigner involves navigating a complex legal landscape that combines Spanish law, regional regulations, and international considerations. By understanding the basics of Spanish inheritance law and seeking expert legal advice, you can ensure that the process is handled smoothly and in compliance with all relevant regulations. This will help you avoid common pitfalls and secure your rights to the inherited property.
