Articles

As with most economic downturns there are always winners and losers. When it comes to real estate in Spain, those who experienced financial uncertainty during the economic downturn were often faced with the prospect of losing their homes. Ironically, and despite claims of financial mismanagement, it was the banking sector that was able to make a series of gains through property repossessions during the Eurozone crisis.

So what does this mean for the Spanish real estate sector? Well, it would now appear that banks have a substantial stake in the property market. Those banks are also keen to sell on those properties to recoup recession-era losses. Bank repossessed properties have become an attractive purchase prospect for those seeking to invest in a property in Spain.  

The free movement of people may be one of the fundamental rights of the European Union, but it has arguably caused the greatest difficulties for EU nationals in matters of probate.

Laws across Member States are rarely uniform for succession purposes. In cases where the deceased was a national of one Member State but domiciled in another, careful consideration will need to be taken as to which laws will govern their estate. The national of a deceased person, where he or she was domiciled, and where his or her assets are located will all play a part in determining what laws should apply.

For many, the most compelling reason to make a will is to ensure friends and family are relieved of the stresses associated with losing a loved one. But the level of certainty and control a last will and testament purports to offer, although comforting, is not always as it seems when dealing with assets in Spain.

The European Court of Justice (ECJ) has taken a bold step in ruling that Spain’s current inheritance tax rules for non-residents are void for being discriminatory.  Prior to the ECJ’s decision, non-residents often found themselves liable to pay more in inheritance tax to the Spanish authorities than their resident counterparts.  The ECJ ruling follows on from a formal request from the European Commission in 2010 for Spain to end its discriminatory Inheritance Tax practices, as they went against EU non-discriminatory provisions.

When buying Spanish property, a basic understanding of the law surrounding the sale and purchase of Spanish property is essential to avoid unnecessary stress and unexpected costs. The Spanish conveyancing process differs significantly from the UK and non-Spanish nationals may face additional challenges in areas such as obtaining an NIE number and paying taxes, or even opening a Spanish bank account.