Succession Agreement
The succession pact is a type of contract whose purpose is the transfer of hereditary rights and assets. We wish to explain what a succession pact is, its benefits, and the applicable legislation in Catalonia regarding succession pacts. JLA Notarios is a notary office in Barcelona located on Avenida Diagonal, and one of our specialities is the processing of succession pacts and inheritances in Barcelona.
What is a succession agreement?
The succession pact is a contract that serves to organise the transfer of assets to one or more heirs and other specific attributions. As it is a pact, it must be agreed upon by two or more people.
Succession agreements in Spain
It is worth noting that the Civil Code determines that succession can only occur through a will or, without it, through intestate succession. Furthermore, it establishes that contracts between living persons aimed at the partition of an inheritance cannot be entered into. Therefore, we can consider that succession agreements are prohibited in much of Spain.
However, due to some exceptions in the Civil Code and foral legislation of certain autonomous communities, the succession agreement is established as a means to organise the transfer of assets and estate. Specifically, this figure only exists in some communities such as Catalonia, the Balearic Islands, Aragon, Navarra, the Basque Country and Galicia. Thus, in Galicia there is the succession improvement agreement, or in the Basque Country the succession agreement with present delivery or with present effects.
For a better explanation of its characteristics, we will focus on the legislation of the Catalan Civil Code, since as Notaries in Barcelona, this is where we practise.
Succession Agreement Catalonia: the Succession Agreement of Appointment of Heir
Among the Foral Civil Rights that allow succession agreements, we find the Catalan Civil Code, which precisely establishes it as a resource in successions alongside the will and intestate succession (declaration of heirs). It is regulated between articles 431 and 432 of Law /2008, of 10 July, which regulates the Fourth Book of the Civil Code of Catalonia, relating to successions.
How do Succession Pacts or contracts work?
One of the main differences between succession agreements and wills is that two people participate in the agreement, both the person disposing of the inheritance and the one accepting it. Therefore, agreements offer heirs the opportunity to know in advance what they will inherit or even the possibility of inheriting from a person while they are still alive.
In contrast, a will only disposes of what is wished to be transmitted and to whom, without the intervention of other people in its granting. Therefore, wills can always be revoked by the person who grants them, whereas the general rule for modifying a succession agreement is that there must be an agreement between the grantors, except in special cases of revocation established by law.
Furthermore, in a succession agreement it is possible to observe the transmission of inheritance between spouses, inheritances, ordering the transmission of family businesses, usufructs, distributing the estate within the family, instituting heirs or making attributions to third parties. Thus, the succession agreement is presented as an alternative to the will, also allowing the establishment of conditions, trusts, etc., and typical succession figures such as executors, accountants or administrators may also be designated.
Likewise, obligations such as the care and attention of the grantors during their ageing may be included.
Characteristics of the Succession Pact in Catalonia
There are various aspects that characterise the succession contract. Among them, we find that the persons granting it must have Catalan residency. Furthermore, the agreement can only be made with other persons who have a degree of kinship, according to article 431.2 of the Catalan Civil Code, unlike other regional legislations.
Thus, a succession agreement can only be granted with the relatives defined by law, who are: the spouse, the civil partner, relatives in the direct line (children, grandchildren or parents), relatives in the collateral line up to the fourth degree (siblings, uncles, nephews or cousins) or the family in the direct or collateral line of the second degree of the spouse.
Another characteristic is that assets or rights may be disposed of to third parties who will not inherit until the death of the grantor and, unless otherwise indicated, if the third party dies before them, the disposition would be invalidated.
Moreover, the agreements can be made on a preventive basis, and may be revoked later. Likewise, the grantors may reserve part of the estate to process the transfer in other desired ways or even of the same.
Finally, two more fundamental aspects of the Catalan succession agreement should be highlighted. The first concerns the possibility of the heir dying before the person who grants them the status of heir. In this case, what was agreed would be annulled, unless this contingency has been foreseen. The second refers to the impossibility of renouncing the inheritance by the instituted heirs once the grantor has died.
Typologies
We find different types in the succession of succession agreements:
- Simple: attributes to a person the status of heir in a future inheritance.
- Cumulative: if, in addition to conferring the status of heir of the testator, it attributes to the appointed person all the present assets of the testator.
- Mutual: in favour of the spouse who survives after the death of one of the members of the couple, and the subsequent transmission of assets and rights to their children.
It should be borne in mind that the cumulative is never presumed, but must be expressly agreed, therefore, in case of doubt it will be interpreted as simple.
Processing a succession agreement
If you wish to grant a succession agreement, you must meet the following conditions: be of legal age and have full mental capacity to understand your actions and the consequences they may cause.
If you wish to grant a succession agreement, you will need to formalise a public deed for the succession agreement, as succession agreements are only valid if recorded in a public deed signed before a Notary.
Make an appointment with a Notary in Barcelona, who will professionally advise you and resolve all your doubts, especially legal and tax ones. Furthermore, they will provide the deed with legal security and validity to avoid future problems or disputes.
Documents for the public deed of Succession Agreement
On the day of the appointment, you must provide the following documentation:
- Valid DNI or identification document: please remember that you must have been born in Catalonia or have resided there for more than 10 years to be eligible for the succession agreement procedure.
- Documentation proving the relationship of the parties involved, such as the family book, birth or marriage certificates.
- Identification of those who will be named heirs or will receive allocations.
In which registry is the succession agreement registered?
Once the succession agreement has been processed, its registration in the Register of Last Will Acts will be necessary, so the Notary will proceed to make the relevant communication to the Register. If the succession agreement is related to the continuity and maintenance of a family business, it will be registered in the Commercial Register or in the Shareholders' Register of the company, although it may also be recorded in the Property Register when it affects real estate, especially when dealing with sales with a survival agreement.
Other questions related to the Succession Pact
The donation and the succession agreement are not the same, and although they have some common characteristics, their differences can be summarised as follows: firstly, the succession agreement can only be granted between family members (even of different degrees). Another difference lies in the fact that the succession agreement is based on the death of the testator, whereas there is the possibility of making a lifetime donation. It may take this circumstance into account or be based on other causes. The last difference is based on the type of taxation, since donations are taxed under the donation tax, and the succession agreement, as we will see below, is taxed under the inheritance tax.
The following succession agreements are distinguished in Catalonia, known as heredamientos:
- Simple heredamiento: consists of an attribution in an agreement that will take effect after the death of the person to be inherited from. Therefore, inheritance occurs after the death of the testator. As a rule, these agreements cannot be revoked by the testator.
- Cumulative heredamiento: in these, it is established who will be the heirs of a person granting the agreement and, in addition, some or all of the assets are already transferred during the lifetime of the testator.
- Mutual heredamiento: contain reciprocal institution of heirs between the signatories of the agreement, in favour of the survivor. They are frequently used between spouses and civil partners.
The succession agreement may only be modified provided that all the grantors who formalised the public deed are present. It may be changed during the lifetime of the grantor and as long as they have full legal capacity. It should also be added that, exceptionally, if the modification of any part of the succession agreement affects certain specific persons, only those to whom the provision concerns may attend.
Likewise, unilateral revocation may be carried out by any of the grantors if there is an agreed cause, due to non-compliance with imposed obligations, due to impossibility of fulfilling the agreement, due to a subsequent change in circumstances, and in cases of hereditary unworthiness.
How are succession agreements taxed in Catalonia?
Succession agreements in Catalonia have significant tax implications, especially in the Inheritance Tax, depending on whether or not there is acquisition of assets during the lifetime of the deceased. Therefore, it is essential to consider the time of the tax accrual to determine the applicable regulations and the valuation of the transferred assets.
- Succession agreements without delivery of assets: In cases where the heir or legatee does not receive the assets until the death of the grantor, the Inheritance Tax is payable on the date of death of the deceased, taxed according to the regulations in force at that time.
- Succession agreements with delivery of assets during lifetime: If the succession agreement with particular attribution involves the transfer of assets during lifetime, the Inheritance Tax is payable on the date the agreement is made. However, if the beneficiary receives more assets upon the death of the deceased, these will be taxed again under the Inheritance Tax at that date.
This aspect is key, as it affects both the taxation and the applicable regulations at the time the tax is payable.
When a succession agreement with delivery of assets during lifetime involves a particular allocation of assets, it is necessary to analyse whether it is subject to the Donations Tax. Depending on the type of inheritance, the taxation may vary:
- Simple inheritance: An heir is designated for the time of death. If the agreement involves a delivery of assets during lifetime, this is considered a donation and is taxed as such.
- Cumulative inheritance: An heir is designated and, in addition, assets are transferred during lifetime. In this case, there is a double accrual:
- One at the date of the agreement, for the assets received during lifetime, with taxation under the Inheritance or Donations Tax, as applicable.
- Another at the time of the death of the deceased, for the remaining assets.
When the grantor transfers assets during their lifetime, a capital gain may arise in the IRPF, as the Tax Agency considers that a transfer for valuable consideration has been made.
For the calculation of the capital gain in the IRPF: The taxable base in the IRPF is calculated by the difference between the acquisition value and the transfer value of the asset at the time of the succession agreement.
However, it should be noted that: If the asset was acquired before 31/12/1994, reducing coefficients may apply (although very limited since the 2015 reform).
Consequently, it is essential to analyse each specific case to determine the impact on the IRPF.
If the succession agreement involves the transfer of an urban property, the Municipal Capital Gains Tax (Tax on the Increase in Value of Urban Land, IIVTNU) must be settled.
Foreign succession agreements
The approval of the European Succession Regulation of 2012 accepts the use of the succession law of the place of residence of foreigners. Thus, hypothetically, a German living in Catalonia could opt for a succession agreement before a Madrilenian who has been living there for 8 years. Foreign succession agreements do not occur with all countries, only those governed by the laws of the European Union. Furthermore, countries such as the United Kingdom, Ireland, or Denmark were excluded from this regulation.
How much does a succession agreement cost at a notary?
The cost of the notarial processing of a succession agreement largely depends on the type of asset being transferred. It will be important to determine the assets and rights of the succession agreement to know the price of the agreement. Additionally, the degree of kinship between the grantor and the heir also significantly influences the cost of the taxes to be paid.
In any case, to promote maximum transparency, the price of notarial acts is regulated by the Government and complies with the regulatory framework of the NOTARIAL FEE SCHEDULE (RD 1426/1989, of 17 November, regulating the Notaries' Fee Schedule).
However, the exact price of a notarial document cannot be calculated until its specific content is known, that is, until it is signed, as many circumstances can cause it to vary, such as the type of asset or the degree of kinship as mentioned. Also, the number of copies requested of a document, the number of pages it contains, as well as possible changes or additions, slightly affect the final price.
If you wish to receive a detailed quote, we invite you to contact us directly through the method most convenient for you. You can do so via the contact form on the main page of this website, through the contact section found in the footer of the website, using the direct WhatsApp access at the bottom right of this page, by sending an email to bcn@jlanotarios.com, or by calling us at 93 159 17 62. Furthermore, if in your case it is necessary to pay taxes or register the agreement in any registry, we will inform you of the cost that such action would entail, as we offer a comprehensive service in matters of successions and inheritances to clients who request it.
As a guideline, we can inform you that, according to the current regulatory framework, the usual price for the formalisation before a Notary of a succession agreement in a deed in which a property located in Catalunya valued at €100,000 is transferred to a child over 21 years old is €871, including VAT.
In the case of a succession agreement in a deed before a Notary in which a monetary amount of €100,000 is transferred to a child over 21 years old, the cost is €471.64, including VAT.
JLA Notaries, Notary for Succession Agreement
In conclusion, the procedure for the succession agreement at the notary is an increasingly well-known and common process. Processing an inheritance in Barcelona, as anywhere else, requires a high level of expertise to complete it in the most appropriate and satisfactory way for those involved.
Thanks to the training and experience of the entire team, at JLA Notarios we provide the most suitable legal solutions in the different areas affecting the individual and their assets, including the processing of inheritances in Barcelona, with the aim of offering you free advice on your queries. With a close and cordial approach from the first contact, at JLA Notarios we work dynamically and empathetically, seeking maximum efficiency and the best profitability for each client, addressing the concerns of each person or company in a personalised manner for their complete satisfaction. To this end, at JLA Notarios we apply new technologies in all procedures, minimising visits to the notary and optimising processing times.
Get in touch with our team and book your first consultation at our notary office in Barcelona.
By your side in the moments that matter
Wills and inheritance
Making a will, making a declaration of heirs or awarding inheritance are very important moments in people’s lives.
At JLA Notarios we offer inheritance law services, both to arrange your estate and to divide up inheritance, guaranteeing the best advice for your particular needs while studying the tax implications of each case. We never forget the human factor. We even offer a notary service at home if necessary.
Contracts and property law
Over the course of our lives, we carry out important actions, such as buying a home, declaring a new-build, lifetime gifting to our children or ending partnerships, among many others.
At JLA Notarios we are experts in property and contract law and buying and selling property. We guide our clients, analysing each particular issue and always considering the tax burden of each transaction.
In addition, some of our notarial services can be performed online, so we can assist you from anywhere in Spain. Contact us to declare a new-build or a commonhold ownership structure online.
Mortgage
Taking out a mortgage is one of the biggest moments for anyone. Just think of the fees and interest you may have to pay for much of your life. So it is essential to have a trusted notary to help you understand what you are signing, explaining the tricky legal terms and their future consequences in simple words, to provide transparency and protect our clients.
At JLA Notarios we are aware of the importance of giving complete and understandable information to people about to sign a mortgage, novation or subrogation. We also advise and guide you on your future mortgage cancellation.
Loan agreements and credit facilities
Individuals and companies often need money to fulfil their dreams or projects. This can be obtained by taking out a loan or credit facility with your bank. When you sign, it is essential to understand the details properly to avoid future surprises.
JLA Notarios can be your trusted notary office, giving you accurate advice on loan contracts, providing a very agile and specialised service for processing loan contracts.
Bear in mind that from 9 November 2023, you will be able to sign your loan contracts from anywhere in Spain electronically by videoconference with JLA Notarios, saving you time and money. Do not hesitate to contact us to find out more about the notary office’s services in order to sign a loan contract online or sign a credit facility online.
Companies
Without entrepreneurship there is no future, so it is of vital importance to support our businesspeople and entrepreneurs.
At JLA Notaries we are familiar with companies’ life cycle, which enables us to provide legal assistance for companies in their different stages, whether incorporation, modifications of their articles of association, changes of director, share sales and purchases, capital increases and reductions, dissolution and closure, and everything related to commercial matters.
Powers of attorney
There are moments in life when a person needs to delegate. The law provides a tool for this: powers of attorney. Though a power of attorney, one person allows another person to act on their behalf.
At JLA Notarios we make sure that you understand the significance and risks of delegating or revoking powers of attorney, from a special power of attorney or power of attorney for lawsuits, to general powers of attorney or preventive powers of attorney for cases of incapacity.
We provide an agile service to sign powers of attorney. You can take your copy away immediately, saving you unnecessary trips, and from 9 November 2023 our clients will be able to sign all powers of attorney that are not general or preventive by videoconference through our digital notary office.
Family affairs
A prosperous society is based on the family and its protection. Family Law provides you with the tools to protect your family and its members, so its foundations are solid and its purposes can be achieved.
At JLA Notarios we provide legal advice on marriage or civil partnerships; property aspects of the family through marriage contracts or civil partnership contracts; the moments when the family relationship is ended, in cases such as divorce or separation; and protection of vulnerable people, such as minors or people with modified capacity, through deeds of appointment of guardians or executors or creation of protected assets. We do all of this in a way that makes everyone involved feel equally supported and secure.
Certifications and authentications
It is common knowledge that notaries attest. That important and simple action can guarantee things of vital importance, such as ensuring that the signature on a document is authentic or certifying that a copy of a document matches the original.
At JLA Notarios we will help you to certify a document or notarise a signature in accordance with the law and tailored to your specific needs.
In addition, these notarial procedures can be carried out conveniently through electronic means from 9 November 2023.
Minutes
How many times have you wanted to leave a record of an event, of a statement, of the condition in which an object is found, or notify someone of any matter. To provide a solution to these issues, the Law provides us with notarial records.
At JLA Notarios we adapt to you, reflecting in the record what you require and carrying out the notifications and requests that you demand.
Oath of Nationality
Behind every nationality oath there is a story of overcoming, sacrifice and waiting.
At JLA Notarios we understand what this moment means and offer an empathetic, agile and quick service, advising beyond the oath itself, anticipating the future requirements that the new Spanish citizen will need.
We are your reference Notary to carry out the nationality oath before a Notary in Barcelona.
Apostille of the hague convention
Globalisation enables the free movement of people and documents of all kinds. How can you guarantee that a document has been officially issued? With an apostille of the Hague Convention.
JLA Notarios can obtain an apostille for all documents executed before us so they are valid and recognised abroad. We do this transparently and save you all the bureaucratic procedures involved.
Tax and registry procedures
Tax bureaucracy can cause a lot of headaches.
So JLA Notarios offers its clients the possibility of assessing and paying the many different taxes by the executing deeds and carrying out other procedures before the notary. We can also file them with the Land or Companies Registry so you do not have to concern yourself with it and can spend your time on the things that matter. We support you from start to finish.
Wills and inheritance
Making a will, making a declaration of heirs or awarding inheritance are very important moments in people’s lives.
At JLA Notarios we offer inheritance law services, both to arrange your estate and to divide up inheritance, guaranteeing the best advice for your particular needs while studying the tax implications of each case. We never forget the human factor. We even offer a notary service at home if necessary.
Contracts and property law
Over the course of our lives, we carry out important actions, such as buying a home, declaring a new-build, lifetime gifting to our children or ending partnerships, among many others.
At JLA Notarios we are experts in property and contract law and buying and selling property. We guide our clients, analysing each particular issue and always considering the tax burden of each transaction.
In addition, some of our notarial services can be performed online, so we can assist you from anywhere in Spain. Contact us to declare a new-build or a commonhold ownership structure online.
Mortgage
Taking out a mortgage is one of the biggest moments for anyone. Just think of the fees and interest you may have to pay for much of your life. So it is essential to have a trusted notary to help you understand what you are signing, explaining the tricky legal terms and their future consequences in simple words, to provide transparency and protect our clients.
At JLA Notarios we are aware of the importance of giving complete and understandable information to people about to sign a mortgage, novation or subrogation. We also advise and guide you on your future mortgage cancellation.
Loan agreements and credit facilities
Individuals and companies often need money to fulfil their dreams or projects. This can be obtained by taking out a loan or credit facility with your bank. When you sign, it is essential to understand the details properly to avoid future surprises.
JLA Notarios can be your trusted notary office, giving you accurate advice on loan contracts, providing a very agile and specialised service for processing loan contracts.
Bear in mind that from 9 November 2023, you will be able to sign your loan contracts from anywhere in Spain electronically by videoconference with JLA Notarios, saving you time and money. Do not hesitate to contact us to find out more about the notary office’s services in order to sign a loan contract online or sign a credit facility online.
Companies
Without entrepreneurship there is no future, so it is of vital importance to support our businesspeople and entrepreneurs.
At JLA Notaries we are familiar with companies’ life cycle, which enables us to provide legal assistance for companies in their different stages, whether incorporation, modifications of their articles of association, changes of director, share sales and purchases, capital increases and reductions, dissolution and closure, and everything related to commercial matters.
Powers of attorney
There are moments in life when a person needs to delegate. The law provides a tool for this: powers of attorney. Though a power of attorney, one person allows another person to act on their behalf.
At JLA Notarios we make sure that you understand the significance and risks of delegating or revoking powers of attorney, from a special power of attorney or power of attorney for lawsuits, to general powers of attorney or preventive powers of attorney for cases of incapacity.
We provide an agile service to sign powers of attorney. You can take your copy away immediately, saving you unnecessary trips, and from 9 November 2023 our clients will be able to sign all powers of attorney that are not general or preventive by videoconference through our digital notary office.
Family affairs
A prosperous society is based on the family and its protection. Family Law provides you with the tools to protect your family and its members, so its foundations are solid and its purposes can be achieved.
At JLA Notarios we provide legal advice on marriage or civil partnerships; property aspects of the family through marriage contracts or civil partnership contracts; the moments when the family relationship is ended, in cases such as divorce or separation; and protection of vulnerable people, such as minors or people with modified capacity, through deeds of appointment of guardians or executors or creation of protected assets. We do all of this in a way that makes everyone involved feel equally supported and secure.
Certifications and authentications
It is common knowledge that notaries attest. That important and simple action can guarantee things of vital importance, such as ensuring that the signature on a document is authentic or certifying that a copy of a document matches the original.
At JLA Notarios we will help you to certify a document or notarise a signature in accordance with the law and tailored to your specific needs.
In addition, these notarial procedures can be carried out conveniently through electronic means from 9 November 2023.
Minutes
How many times have you wanted to leave a record of an event, of a statement, of the condition in which an object is found, or notify someone of any matter. To provide a solution to these issues, the Law provides us with notarial records.
At JLA Notarios we adapt to you, reflecting in the record what you require and carrying out the notifications and requests that you demand.
Oath of Nationality
Behind every nationality oath there is a story of overcoming, sacrifice and waiting.
At JLA Notarios we understand what this moment means and offer an empathetic, agile and quick service, advising beyond the oath itself, anticipating the future requirements that the new Spanish citizen will need.
We are your reference Notary to carry out the nationality oath before a Notary in Barcelona.
Apostille of the hague convention
Globalisation enables the free movement of people and documents of all kinds. How can you guarantee that a document has been officially issued? With an apostille of the Hague Convention.
JLA Notarios can obtain an apostille for all documents executed before us so they are valid and recognised abroad. We do this transparently and save you all the bureaucratic procedures involved.
Tax and registry procedures
Tax bureaucracy can cause a lot of headaches.
So JLA Notarios offers its clients the possibility of assessing and paying the many different taxes by the executing deeds and carrying out other procedures before the notary. We can also file them with the Land or Companies Registry so you do not have to concern yourself with it and can spend your time on the things that matter. We support you from start to finish.
