With more British nationals buying property, retiring, or holding financial assets in Spain, legal matters spanning both countries are increasingly common. But dealing with cross-border issues means dealing with two very different legal systems, and things can become complicated quickly without the right guidance.
From inheritance law to tax planning and powers of attorney, understanding how UK and Spanish laws interact is key to protecting your interests and avoiding delays or disputes.
Where UK and Spanish Law Clash
UK law operates under a common law system, which allows individuals more freedom to distribute their assets as they wish. Spain, by contrast, follows a civil law framework with strict succession rules, tax regimes, and documentation requirements.
These differences become particularly relevant in situations such as:
- Drafting separate wills that cover assets in both countries
- Inheriting Spanish property as a UK resident
- Gifting assets across borders and making sure HMRC recognises the gift
- Applying UK lasting powers of attorney abroad
- Calculating and paying inheritance tax in multiple jurisdictions
Even everyday legal decisions, like buying a holiday home or opening a joint account, can involve complex cross-border implications that aren’t always obvious until later.
Common Legal Pitfalls
One of the biggest issues with cross-border estates is lack of coordination. Families often assume a UK solicitor can handle everything or that a Spanish lawyer will be able to interpret UK documents. In practice, this rarely works out smoothly.
For example:
- A UK will might be legally valid, but also contain trust provisions which Spanish law does not recognise
- An inheritance tax exemption in the UK might not apply in Spain, or vice versa
- A Lasting Power of Attorney granted in England is very unlikely to be accepted by a Spanish bank or notary
- Spanish inheritance tax deadlines may be missed while waiting for English grant of probate
These aren’t just technicalities, they can result in frozen accounts, late tax penalties, or even legal disputes among family members.
Seeking Joined-Up Legal Advice
Tackling cross-border issues means having an integrated legal strategy. This usually involves working with professionals who understand both systems and can ensure your documents are properly drafted, translated, and interpreted in the correct legal context.
If you’re dealing with property, inheritance, or tax planning that spans both countries, it’s worth taking the time to read about cross-border legal issues and what they mean for your specific circumstances.
Planning Ahead for Peace of Mind
Proactive planning is always better than trying to resolve problems after the fact. This is especially true for high-value estates, where both UK and Spanish tax implications can have a significant financial impact.
Our post on estate planning for high-value estates in Spain explains how to approach the process sensibly, from securing tax advice to ensuring that your estate plan is watertight across borders.
With the right advice, managing legal matters between the UK and Spain doesn’t have to be overwhelming; it simply needs to be carefully structured from the outset. Contact MW Notary today for specialised Spanish law legal advice.