In tourist areas like the Balearic Islands, it is common for non-resident citizens to own assets and properties in the territory. However, when they pass away outside of Spain, their heirs often do not know that the acceptance of the inheritance must be formalized in Spain, following the corresponding legal procedure.

This guide details the essential steps for a non-resident heir to correctly manage the acceptance of an inheritance in the Balearic Islands:

NECESSARY DOCUMENTATION

Death Certificate

- If issued abroad, it must be apostilled or legalized and, if necessary, translated into Spanish.

- Alternative: An International Death Certificate (according to the Vienna Convention of 1976) can be used, valid in Spain without the need for translation or apostille.

Certificate of Last Wills in Spain: Requested from the Spanish Ministry of Justice to check if there is a will in Spain.

Life Insurance Certificate: To verify if there are any insurance policies with beneficiaries.

Will or Declaration of Heirs

- Spanish will (if it exists).

- If there is a will abroad, it must be apostilled, translated, and adapted to Spanish law.

- If there are no wills, a declaration of heirs abintestate must be processed, duly apostilled and translated.

- Alternative (only in the EU): European Certificate of Succession - The ECS facilitates the management of international inheritances when a person dies leaving assets in different EU countries, accrediting the heirs and avoiding legalization or additional translation procedures, as the certificate is valid throughout the EU without the need for an apostille.

- Additionally, it allows the registration of inherited assets in public registers, such as the Property Register in Spain, without the need for more documents, and avoids the need to obtain separate judicial or notarial resolutions in each country.

Certificate of Positions or Balance at the Date of Death: In case the deceased had open bank accounts in Spain.

DNI/NIE or Passport of the Heir: The heir must obtain a NIE to accept the inheritance and pay taxes in Spain.

Documentation related to the assets and properties that make up the estate and that prove the ownership of the deceased (if they were the owner as a natural person)

- Simple property note, deed, cadastral certificate, IBI receipt…

- Bank statements for the last 12 months to the date of death, documentation of fixed-term deposits, bonds or investment funds…

- Shares and participations in companies.

- Vehicle documentation.

- Insurance.

- Loans, debts, obligations.

If the deceased was the owner through an SL: Additionally, the deed of incorporation and statutes of the SL, Certification of the Mercantile Register on the situation of the SL, updated shareholder book indicating the ownership of the shares, annual accounts and recent balances of the SL (for tax valuation), among others…

NOTARIAL PROCEDURE IN SPAIN: 

Inheritance Acceptance Deed

- Signed before a notary in Spain (Balearic Islands).

- It can be done personally or through a notarized power of attorney granted abroad (apostilled and translated) or a power of attorney granted in Spain without the need for an apostille.

PAYMENT OF TAXES IN THE BALEARIC ISLANDS: 

Inheritance and Donations Tax (ISD)

- Since July 6, 2023, the Balearic Islands apply a 100% bonus for heirs of Group I and II (descendants, spouse, and ascendants), according to Decree Law 4/2023, of July 5, on urgent measures in fiscal matters, administrative simplification, and efficiency.

-Other heirs (siblings, nephews, etc.) may not benefit from the 100%, depending on their relationship with the deceased.

Municipal Capital Gains Tax (Tax on the Increase in Value of Urban Land - IIVTNU): Paid at the town hall where the property is located and depends on the time the deceased owned the property.

REGISTRATION OF THE PROPERTY IN THE PROPERTY REGISTER: Once the taxes are paid, the property is registered in the Property Register of the Balearic Islands.

TRANSFER OF ASSETS: 

Bank accounts in Spain: The bank will require the documents and proof of tax liquidation to make the change of ownership.

Properties: The cadastre and supplies must be updated in the name of the heir.

In addition to properties and bank accounts, an inheritance can include vehicles, jewelry, works of art, furniture, and other movable assets, shares, bonds, investment funds, pension plans, or life insurance, among others, for which the corresponding change of ownership must be processed.

Final Consideration: However, each inheritance acceptance process is unique and may require additional documentation or procedures depending on the specific characteristics of the estate, applicable regulations, and the situation of the heirs. Therefore, it is advisable to seek professional advice for each specific case, ensuring efficient management and compliance with current legislation.

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