January 27th, 2014
In many cases, the answer is: yes!
It is often possible to deal with Spanish estate planning and structuring so as to reduce the impact of Spanish Succession Tax within the Spanish Will.
If you have a Spanish Will, this can assist in reducing Spanish Succession Tax in the following ways:
1. It ensures that you have the flexibility you are legally allowed to select your beneficiaries; so that the most tax advantageous succession route in the circumstances can be identified and provided for.
2. It secures the best legal basis for a fast and economical succession process, following a death. This helps to ensure that the legal process can be completed within the very tight timescales allowed under Spanish tax law. Conversely, any failure to comply with the statutory timetable (for example, delays caused by not leaving an up to date and valid Spanish Will) can expose beneficiaries to increased tax liability, through the imposition of interest and penalties on the tax debt.
It is perfectly legal and acceptable to organise your estate succession in Spain, so as to minimise the exposure to Spanish Succession Tax- as far as legitimately possible in the circumstances. In advising our clients, we consider all available routes to achieve this. As our team is independent and not tied to any single process or structure; we are able to provide objective and case- specific advice in each individual client scenario. This ensures the most cost effective estate planning solution within the constraints of each case.