What happens when a relative leaves behind just a bank account in Spain?

When people think about inheriting assets in Spain, they usually picture a holiday home on the Costa del Sol or an apartment in the city. But what happens when the only Spanish asset is a bank account? This situation is more common than you might expect, and while it is somewhat simpler than dealing with Spanish property, it still involves a considerable amount of work, documentation, and patience.

The starting point is gathering the necessary documents. Even without property involved, the list is still substantial:

• The death certificate;
• A certificate from the Spanish Wills Registry (which confirms whether the deceased made a Will in Spain);
• The relevant Will;
• A power of attorney, authorising the Spanish lawyer to act on behalf of the beneficiaries and executors;
• Spanish tax identification numbers for all beneficiaries and executors;
• A certificate from the Spanish bank confirming the balance of the account at the time it was closed.

If you have dealt with a Spanish estate involving property before, much of this will look familiar. The key difference comes in the next stage.

Skipping the notary, a welcome shortcut

One of the main advantages of an estate that consists solely of a bank account is that there is no need to sign a formal Deed of Inheritance at a Spanish Notary’s office. In Spain, a Notary is a public official who authenticates important legal documents, think of them as a legally empowered witness whose stamp carries significant legal weight. Their involvement can be both costly and time-consuming. The average Notary fee for the preparation of a Deed of Inheritance can range between €1000 to €2000. Jumping this step makes a substantial saving to the beneficiaries.

So why can this step be skipped here? In Spain, a Notarial Deed of Inheritance is usually required when the estate includes property that needs to be registered with the Land Registry. Where there is no property, the law permits the estate to be dealt with through a simpler private document, sometimes referred to as a declaración privada de bienes (a private declaration of assets) or documento privado de herencia (private inheritance document). This document is submitted directly to the Spanish Tax Office alongside the inheritance tax return, cutting out one of the most burdensome steps in the process.

Dealing with the Spanish Bank

Once the paperwork has been filed with the Spanish Tax Office, the next step is contacting the bank to close the account and transfer the funds,typically back to the UK for UK based beneficiaries. In theory, this sounds straightforward. In practice, it rarely is.

The bank will pass the file to its legal department for review. Once approved, the bank, either through a centralised estates department or through the branch where the deceased held their account, will contact the lawyer to begin the closing process. This can involve the lawyer visiting a branch two or three times in person to sign the necessary documents.

What makes this stage particularly frustrating is that Spanish banks tendto let estate matters sit without progressing them. Lawyers frequently chase banks to keep the process moving. What ought to be a relatively simple transaction can easily take one to two months. This is where the lawyer appointed needs to chase the bank regularly. If not, the matter can linger on for several months.

Even seemingly straightforward Spanish estates require professional guidance. If you have been appointed as an executor or beneficiary of a Spanish estate, however modest, it is always worth seeking early legal advice to understand whether and how to proceed.

If you need legal advice, contact Antonio Guillen here.