German and Spanish lawyer in Palma de Mallorca · since 2003Spanish law, explained in your language.

Advice from my practice

Why the deposit should go to the notary

Life is good: just three weeks ago you signed the deposit contract (contrato de arras) and transferred the deposit (10% of the purchase price) to the friendly sellers. As they had to pay a deposit on another property themselves, they needed your money for their own payment. The signing before the notary is scheduled in two months, and you will become the owner of your dream home.

Out of curiosity or habit, you keep scrolling through property portals and forums, and perhaps you also receive a newsletter from an estate agency or platform. And what do you see? YOUR PROPERTY is still on the market – and at a different price, too. That makes you suspicious, and you contact the agent.

Or:

Shortly before the appointment, the sellers can no longer be reached, or they tell you that, because of their divorce, the property will not be sold after all.

In short: in either case, ownership will not be transferred to you. That is disappointing, as you had already made plenty of plans. Still, you have a contract, and the sellers now have to return the deposit and pay compensation of the same amount on top.

Then comes the sobering discovery that the sellers no longer have "your" deposit. The property also carries debts, so on the long road to an auction you will probably recover only part of what you paid. The world is unfair.

Unfortunately, the law and fairness are not always the same thing, and a lawyer's job is to protect you from that as well as possible. One very good option is to place the deposit in a notary escrow account. Yes, this comes at a cost. But compared with the money, nerves and time you would lose in legal proceedings, it is money well spent.

Even so, some clients are still willing to take this risk. With me, you know the risk before you pay.

Sandra Aertken · 10/2026 · Does not replace individual advice.

Advice from my practice

Wealth tax 2026

As a lawyer, I do not presume to be an expert in tax matters, let alone to give tax advice. That said, every lawyer should have a basic knowledge of tax law in order to at least point clients in the right direction when buying property or dealing with an inheritance. Working together with a tax adviser is always advisable.

A statement about wealth tax that I have come across a lot recently is: "I'm buying a property worth €2,800,000.00 on my own. Wealth tax only applies to assets above €3,000,000.00 anyway."

Yes and no. This approach may work. It may also turn out to be expensive:

First, the purchase costs are also added to the value of the property – are we still below €3,000,000.00, or is it getting tight? Then there is a bank account, perhaps a high-value car … Fine, that can be calculated. Your tax adviser will advise you.

The second point is less so. When wealth tax was reintroduced – for a provisional period of two years, incidentally – there was a tax-free allowance of €700,000.00 per person. Above that, the tax became payable. Surprisingly, the provisional tax was extended and is still in force today, with no end date.

In 2024, the current Balearic government raised the allowance to that mythical €3,000,000.00. Great. But do we know whether it will stay that way? Or will it be lowered again in the next legislative term? No one can predict that. Even if the allowance were "only" €1,500,000.00 or €2,000,000.00, wealth tax could become a real issue for some property owners.

So if there are different ways to structure the purchase, the tax adviser and the lawyer should discuss them together with the client and choose the best one.

Sandra Aertken · 10/2026 · Does not replace individual advice.

Advice from my practice

Taxed twice when you sell?

You already know: when you sell your property in Spain as a non-resident, you pay 19% tax on the capital gain. For residents, the rate varies and may even be higher. You have come to terms with the fact that the tax cannot be avoided even after 10 years of ownership. And also with the fact that at the notary appointment you receive "only" 97% of the price, while the buyer must pay the remaining 3% to the Spanish tax authorities as a payment on account of your possible capital gains tax (Modelo 211).

Then comes the breakdown of the purchase price payment, or the statement after the sale, and you find another item on the list that you don't recognise:

"Plusvalía municipal" / municipal tax on the increase in urban land value

Yes, it exists, and yes, it is lawful. A few years ago there was a lot of back and forth about it, but the outcome was that town halls may collect this tax on the gain. The amount varies from municipality to municipality and is based on the cadastral value, the length of ownership and the coefficients set by the municipality. You can ask the town hall how much is due on the sale. Payment must be made within one month of signing the sale. Your tax adviser will help you with this.

What happens if it isn't paid? It can become a charge on the property – in other words, the buyer is left with it. That is why, in the vast majority of cases, this amount is withheld from the purchase price and the buyer undertakes to pay it to the municipality on time. At first glance, many buyers find this cumbersome. On second thought, they understand that splitting the payment this way protects them. The one who remains annoyed is the seller, if they only learn about the tax later.

Sandra Aertken · 10/2026 · Does not replace individual advice.

Inheritance

Wills in Spain

Why make a will in Spain if I already have one in Germany? Quite simply: to settle your estate clearly and to avoid Spanish authorities having to interpret your German will. You also do your heirs a favour, because once a Spanish will is presented, other documents that would have to be obtained in the deceased's home country (often expensive and cumbersome) are no longer needed. That has been the prevailing view for many years.

In my many years of practice, however, I have found that things often become more complicated when several wills made by non-resident testators have to be taken into account when the estate is being settled, and it is unclear how each will should be treated – both in Germany and in Spain. More than once I have wished the testators had simply made their will in Germany. So whether a Spanish will makes sense or may cause confusion always has to be decided case by case.

In any case, it is important that you bear the following points in mind:

1. Differences for residents and non-residents: which law applies, and can I choose?

First of all: you can only choose the substantive law, i.e. the options for disposing of your estate. The obligation to pay tax always remains subject to Spanish tax law.

If you are not resident, the choice of law is fairly simple: as a rule, the law of your habitual residence applies, which usually goes hand in hand with your nationality. Nevertheless, this point should be mentioned in the will.

If you are resident in Spain but hold another nationality, you can now choose which of the two laws applies: whether you would rather make your dispositions under Spanish law or under the law of the country of your nationality. Which is better in your case, or better suits your needs, should be clarified in a consultation.

2. The wills must not contradict each other

If another will already exists, it must be checked against the document to be drawn up here. Otherwise, the testator's wishes may not be able to be carried out. A contradiction can often be avoided if the will in Spain refers exclusively to assets in Spain. But have this checked beforehand. It is equally important that, whenever the German will is changed, the Spanish will is taken into account and, if necessary, amended here as well.

3. Is a joint will also possible in Spain?

Spanish law does not recognise the joint will as a legal instrument. However, if the will is made under a law that allows this form, such as German law, the notary can execute a joint will.

4. Can I get my will in German?

If the notary executing the will speaks German, they may agree to draw up the will in both languages.

5. Where is it kept?

The notary's office reports the will to the Central Register of Wills (Registro General de Actos de Última Voluntad) in Madrid. When the testator dies, a certificate must be obtained from there showing when and where the last – and therefore valid – will was executed. The will is also kept in the archive of the notary who executed it, and you receive a copy.

6. Costs

Fortunately, the cost of a will in Spain does not depend on the value of the estate, which makes it much cheaper than in Germany in most cases.

If you have any further questions, I'm happy to help at s.aertken@abogadosaertken.com

Last updated: 10/2026 · Does not replace individual advice.