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How to draft a will in Spain without a notary

In Spain it's perfectly legal to draft and write your own will without the help of a notary, but there are a few requirements. Here's everything you need to know.

How to draft a will in Spain without a notary
You are entitled to write a 'testamento ológrafoso' (holographic will), which basically means it is drafted and signed entirely (by hand) by the testator alone, without witnesses or a notary. Photo: Pixabay.

In Spain, a notary is a legal professional who essentially oversees, organises and approves (by signing and stamping) documents to make sure that paperwork is ready to be sent to courts or land registry or whatever other official body it might be.

One of their main responsibilities is writing up wills and last testaments, making sure they are legally binding, and that they include everything required to be approved and make sure the inheritance process goes smoothly. Generally speaking, notaries in Spain will charge roughly between €40 and €100 to write up a will, depending where you look.

READ ALSO: Five things Britons need to know about inheritance tax in Spain

Although getting a notary’s services are recommended, especially in a foreign country with a different legal system, and especially so in a different language, it is perfectly legal and proper to write up your own will in Spain without the oversight of a notary, so long as it meets a number of requirements.

According to Barcelona-based legal group Balcell’s, in Spain there are generally two types of wills: an open will, and a closed will. Open wills are always signed before a notary and witnesses, usually three in Spain, whereas a closed will is kept confidential between the testator and notary.

But you are perfectly within your rights to draft your own will without a notary, and there are certain sets of circumstances that might force you to: if the testator is close to death, and could realistically die in the very near future whether it be because of an accident or serious illness, or due to some kind of catastrophic event that means the will must be drafted immediately.

Imminent death and catastrophes aside, there’s also a third type of will in Spain that allows you to draft it yourself, whatever reason.

READ ALSO: Where are the best and worst places for inheritance tax in Spain?

This is known as a testamento ológrafoso (holographic will), which basically means it is drafted and signed entirely (by hand) by the testator alone, without witnesses or a notary – so long as it meets a few requirements.

The Local breaks them down below.

Requirements to draft a will in Spain without a notary

  • The person writing the will must be of legal age, that is 18 years old at the time of signing.
  • The document must be written and signed by the person leaving the inheritance and nobody else.
  • It must clearly indicate the date it was written, including day, month and year. 
  • If anything in the will has crossed-out or corrected, it must rectified under the signature at the bottom of the document, though most notaries and lawyers recommend redrafting the document.
  • As a foreigner in Spain, you are within your legal rights to write your last will and testament in your native language if you wish.
  • The document must be entirely handwritten, including the date, which can be written in number or letter form.
  • The signature must be that of the testator themselves, not anybody else signing on behalf, or using any other method such as digital signatures or fingerprints. 
  • The will must be signed on every page and at the end of the document.
  • Once the will has been drafted, the testator must sign it and keep it safe in order to prevent damage or suspicion (fingerprints, scuffs) that the document has been tampered with, something that could lead to the annulment of the will and cause a whole host of legal problems for the named heirs.
  • You cannot rewrite, modify, or expand anything in the will once it has been signed, and making alterations after it has been signed would make the will invalid.
  • Once the testator has died, the will must be taken to a notary within 5 days in order to be processed.

Our journalists at The Local are not legal experts, and it is always recommended that you seek proper legal advice before considering drafting your own will.

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TAXES

How foreigners in Spain’s capital can pay less tax with the new Mbappé Law

The regional government of Madrid is finalising the approval of the so-called Mbappé Law, a very favourable new personal income tax regime for foreigners who settle and invest in the Spanish capital.

How foreigners in Spain's capital can pay less tax with the new Mbappé Law

Similar to Spain’s Beckham Law, introduced in 2005, this piece of legislation is named after a famous footballer who will be the first to benefit from lower tax rates, as will other foreigners in Madrid.

Kylian Mbappé is a French footballer who currently plays for Paris Saint-Germain, but looks set to sign for Real Madrid this summer.

The objective of the right-wing Madrid government of Isabel Díaz Ayuso is to attract more foreign investment to the region with beneficial fiscal rates.

READ ALSO – Beckham Law: What foreigners need to know about Spain’s special tax regime

Unlike the Beckham though, the Mbappé Law is only designed to benefit foreigners who move to the region of Madrid, it’s not open to those who want to move elsewhere in Spain.

Also unlike the Beckham law, foreigners will only be able to reap the rewards of the Mbappé Law if they invest money into the region. This could be in the form of investments in companies or in vehicles, but it cannot include investments in property.

Specifically, applicants will be able to deduct 20 percent of all the money they invest in the Madrid region.

The law applies to regional personal income tax, which accounts for approximately half of entire tax payments in Spain, since the other part corresponds to the State’s collection.

Normally, a foreigner like Mbappé will be taxed in the highest income bracket, as they will earn well over €300,000 gross per year.

When the law is finally approved however, Mbappé could avoid paying the regional income tax entirely, in the event that 20 percent of his Madrid investments represent the same amount that he would have had to pay in taxes on his salary.

READ ALSO: Why you should move to this region in Spain if you want to pay less tax

How will the Mbappé Law work?

For example, if Mbappé earned €40 million gross (not his actual salary), he would normally be charged €18 million in personal income tax.

Of this, 24.5 percent would correspond to the state tax, and this would have to be paid as normal. This means the state would collect €9.8 million from him in tax.

The change happens with the rest of the tax – the regional tranche. If he doesn’t make any investments, which now seems unlikely, he would have to pay €8.2 million in tax to Madrid.

If on the other hand the French superstar invested €40 million in Spanish companies or state bonds – he could deduct €8 million, which represents 20 percent of that amount.

This would mean that Mbappé’s tax rate would remain at 24.5 percent, a marginal rate that is slightly higher than the personal income tax for a worker who earns €20,000 and receives around €1,300 net per month.

As a percentage, of course, the amounts in Mbappé’s case are going to be huge. So, instead of paying €18 million in total, he would only pay €9.8 million.

Overall, this legislation signals that Madrid will become even more attractive to foreign investors.

By contrast, those who move to Catalonia will have to pay 25.50 percent in regional income tax, which added to the 24.5 percent of the state tax would increase personal income tax by half. So as a Real Madrid player Mbappé would earn €30.2 million, but if he signed for Barça he would pocket €20 million.

What’s the catch?

There are a few caveats to the new law, which primarily depend on how long you stay in Madrid. The new regulations establish that you have to stay and live in Madrid for a total of six years. If you leave before those six years are up, then you will be forced to return part of the tax savings you made.

What does this mean for Madrid?

The regional government of Madrid estimates that 30,000 foreign investors could choose to move to the region specifically in order to benefit from the new law and that it will cost the public coffers €60 million per year.

The idea is that Madrid will continue to attract foreign investment. Madrid’s leader Isabel Díaz Ayuso recently claimed that: “Two out of every three euros that arrive in Spain as an investment from abroad do so in projects that are developed within the Community of Madrid. In the last decade, the flow of investments has doubled”.

Madrid already has some of the best tax incentives in Spain. Residents pay less tax on their income, assets, inheritance and property transactions and conditions are beneficial to high-income earners in particular.

Financial experts agree that Madrid is among, if not the top region, with the most lenient tax system in the country, and when the Mbappé law comes into force, the region will benefit from even more incentives.

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