2. Drawing up a Spanish will saves taxes to your heirs.
There’s a deadline of 6 months as from the time of the testator’s demise to file and pay Spanish Inheritance Tax.
You can request a deferral within the first five months of the death, but heirs may still have to pay the penalty and/or delay interests depending on how late they actually pay. You can also
request to fraction the IHT paying in instalments up to five years. After the six months deadline has elapsed your beneficiaries will incur in penalties for late payment typically ranging from 5%, 10% and 15% if paid in the next 3, 6 and 12 months as from the said deadline. If payment is made after 12 months from the deadline a surcharge of 20% is applied besides the accrued delay interests.
Bear in mind that deposit monies will be frozen upon death.
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