Why Foreign Property Owners Must Plan for Inheritance & Gift Tax

If you own real estate in Alicante and:

  • You pass it on to your children or spouse, or

  • You gift it to someone during your lifetime,

Spanish Inheritance and Gift Tax (ISD) applies — even if neither party lives in Spain.

At Borderless Lawyers, we help foreigners:

  • Minimize tax exposure

  • Comply with local and national filing rules

  • Draft wills and handle succession safely


📊 Who Pays the Tax?

In Spain:

  • The recipient (heir or beneficiary) pays the tax

  • The taxable base is based on the value of the asset received, minus allowable deductions

  • Rates and exemptions vary by region — Alicante falls under Valencia regional rules


💰 Inheritance Tax Rates in Alicante (Valencian Region)

Relationship Tax Rate Typical Allowances
Spouse / Children 7–34% €100,000 exemption per child or spouse
Grandchildren 7–34% €100,000
Siblings / Nephews 7–34% Small or no allowances
Unrelated (friends, partners) 7–34% + surcharge Usually no allowances

📌 Rates are progressive — the higher the value inherited, the higher the tax rate.


🎁 Gift Tax in Alicante (Donaciones)

Gift tax applies when you transfer ownership of property during your lifetime.

  • Same rates and exemptions as inheritance tax

  • Must be declared within 30 working days of transfer

  • Notaries must notify tax authorities of the transaction

✅ We handle the entire gifting process — including document drafting, filing, and notary coordination.


⚖️ What Happens If You Don’t Plan?

  • Heirs may face unexpected tax bills

  • Properties may be frozen until taxes are paid

  • Surviving spouses or children may have to sell to cover costs

  • If no will exists, Spanish intestate rules apply — not your home country’s law

🛑 Cross-border inheritance is complex. Avoid assumptions.


📄 Spanish Will vs. Foreign Will

If you own property in Alicante, we strongly recommend signing a Spanish will.
Benefits include:

  • Faster probate

  • Clear indication of applicable law (e.g., your national law under EU Regulation 650/2012)

  • Reduced risk of legal conflict or delay

We draft bilingual Spanish wills valid for property located in Spain.


🧾 Common Documents Required

To process an inheritance or gift, you’ll typically need:

  • Death certificate (official and translated)

  • NIE number for heirs

  • Escritura (title deed)

  • Catastro data

  • IBI tax receipt

  • Will (Spanish or foreign, legalized)

  • Proof of kinship (birth or marriage certificates)

We manage the entire process — from translation to tax filing.


💡 Strategies to Reduce Inheritance or Gift Tax

  • Gifting early (to benefit from current allowances)

  • Ensuring residency status aligns with regional rules

  • Setting up usufruct (life interest agreements)

  • Signing a Spanish will clearly designating heirs

  • Transferring through succession planning vehicles (e.g. foreign trusts, company holding structures — if applicable)

Every case is unique — we tailor the strategy to your nationality, residence, and goals.


🧑‍⚖️ Why Foreigners Choose Borderless Lawyers

  • Inheritance & gift tax planning for non-residents

  • Spanish wills in your language

  • Probate & gifting handled remotely via Power of Attorney

  • Transparent, fixed-fee legal support

  • Tax optimization advice with local expertise


📞 Own Property in Alicante? Plan Your Succession Now

Avoid costly delays or tax burdens for your family.
Let our international team help you plan and file everything correctly — and protect your assets.

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