Proper structuring of family wealth is not only vital to ensure a peaceful transition to the next generation, but also to optimise the significant tax burden involved in inheriting in Spain.
Succession pacts in Balearic law
Balearic Foral Law offers very advantageous figures, such as the succession pact or "finiquito de legítima" in Ibiza and Formentera. This tool allows the inheritance to be organised during one's lifetime with tax benefits that do not exist in the common Spanish regime.
The importance of a will
For foreign residents with properties in Ibiza, it is highly recommended to grant a will in Spain limited to assets located in the country. This avoids costly and lengthy processes of translation and legalisation of foreign wills.