Inheriting Property in Spain? Here Is What You Need to Know

Dealing with a Spanish inheritance can be legally and administratively complex, particularly when the heirs live outside Spain. There are deadlines, specific tax obligations, and a procedural framework that differs considerably from what British, French and other European heirs will be familiar with at home. Understanding the key steps — and acting promptly — is important to protecting the estate.

Gerardo Vázquez of Vázquez Lawyers has many years of experience in these matters, having been involved in a court case in the Spanish Supreme Court which set a precedent, even before the EU Succession Regulation, on the law applicable to the Spanish estate of a British person living in Spain. Whatever firm you use, don’t try to do things yourself — take specific advice.

A — How Spanish Inheritance Law Applies to Foreign Nationals

What law governs a Spanish inheritance when the deceased was a foreign national?

Since 2015, EU Regulation 650/2012 — the EU Succession Regulation — allows any person to elect in their Will for the law of their country of nationality to govern their entire estate, including property held in Spain. Without such an election, the default rule is the law of habitual residence at the time of death.

For British, French, Belgian and German nationals who own property in Spain, this distinction matters. A British national habitually resident in Spain who dies without a Will or a EU Succession Regulation election will have their estate governed by Spanish law in full — including Spain’s forced heirship rules (see Section B). A British national habitually resident in the UK who dies without a Will may have their estate governed by English law, but Spanish administrative procedures will still apply to the Spanish property.

Following Brexit, the UK no longer participates in the EU Succession Regulation as a member state. However, the Regulation still permits nationals of non-EU countries to elect their nationality law — a British national can still make a valid EU Succession Regulation election in a Will drafted in Spain. This is an area where specialist bilingual legal advice is important, as the interaction between English and Spanish succession law can produce unexpected results.

Even where foreign law governs the distribution of an estate, Spanish procedural requirements apply to assets physically located in Spain. The inheritance should ordinarily be accepted by notarial deed, the tax paid, and the Land Registry needs to be updated.

What is the default rule if there is no Will and no election?

Without a Will, Spanish intestate succession rules apply to Spanish assets if the deceased was habitually resident in Spain. If the deceased was habitually resident abroad, the law of their country of habitual residence governs the distribution — but the heirs must still go through all Spanish administrative procedures to deal with the Spanish property, including obtaining a Declaración de Herederos Abintestato (a formal judicial or notarial declaration of who the heirs are under the applicable law).

In practice, dying without a Will almost always results in a significantly longer and more expensive process for the heirs.

B — Forced Heirship and the Legítima

Can a foreign national leave their Spanish property to whoever they wish?

If Spanish law applies to the estate — either because the deceased was habitually resident in Spain or because no EU Succession Regulation election was made — Spanish forced heirship rules restrict testamentary freedom significantly. The key concept is the legítima: mandatory portions of the estate that must pass to compulsory heirs regardless of what a Will says.

Though this can vary in some autonomous regions in Spain, under the Spanish Civil Code, the estate is divided into three equal thirds:

• Step 1 — The strict legítima (tercio de legítima estricta): this third must be distributed equally among children and descendants. It cannot be altered, reduced or left to anyone else.
• Step 2 — The mejora (tercio de mejora): this second third must also pass to children or grandchildren, but the testator can choose to distribute it unequally — favouring one child over another, for example.
• Step 3 — The free disposal third (tercio de libre disposición): this final third can be left to anyone the testator chooses, including a surviving spouse, a charity, or a friend.

A surviving spouse does not automatically inherit a share of the legítima, but is typically entitled to the usufruct (right of use and enjoyment) of the mejora third during their lifetime.

These rules apply to the general Spanish Civil Code. Regional variations are significant: the Basque Country, Catalonia, and Navarre each have their own distinct forced heirship frameworks that may differ substantially from the above. The region where the deceased was habitually resident — not where the property is located — determines which regional rules apply.

Making an EU Succession Regulation election in a properly drafted Spanish Will could override these provisions, giving the testator greater freedom to distribute their estate.

What if the deceased was not resident in Spain?

If the non-Spanish deceased was habitually resident in their home country (the UK, France, Belgium, Germany, etc.), the succession rules of that country apply to the overall distribution of the estate. Spanish forced heirship rules would not apply. However, the Spanish property must still be dealt with through Spanish administrative channels, and the heirs must still complete the Spanish formalities regardless of which law governs the distribution.

C — Making a Will and Planning Ahead

What is a Spanish Will and why does it matter?

A formal Spanish Will (testamento notarial) is a document made before a Spanish Notary and registered in the Central Will Registry (Registro de Últimas Voluntades). It usually covers just the deceased’s Spanish assets and could be separate from any Will made in the UK, France or elsewhere.

Having a Spanish Will significantly simplifies the inheritance process for heirs. Without one, the heirs must go through a longer and more expensive procedure to establish who is entitled to inherit — typically a Notarial Declaration of Heirs — before any of the Spanish assets can be transferred. For any British, French, Belgian or German national who owns property or financial assets in Spain, making a Spanish Will is one of the most important steps they can take.

The Spanish Will can include an explicit EU Succession Regulation election of nationality law, overriding Spanish forced heirship rules and, in some cases, giving the testator testamentary freedom over their Spanish estate. Vázquez Lawyers can prepare a Spanish Will for clients before it is too late and the estate ends up where it was not intended.

Can a foreign Will be used in Spain?

A Will made in the UK, France or another country is technically valid in Spain if it complies with the applicable international rules. However, using a foreign Will in Spain requires an apostille, a certified translation into Spanish, and additional administrative procedures. This creates delay and additional cost, and significantly increases the complexity of the inheritance process for the heirs. A separate Spanish Will covering only the Spanish assets is always preferable.

Are there other planning tools available?

Inter vivos gifts: transferring assets during the owner’s lifetime can reduce the taxable estate, but gifts are also subject to Spanish gift tax (Impuesto sobre Sucesiones y Donaciones applies to both inheritances and gifts), and tax analysis is required before proceeding.

D — The Inheritance Process Step by Step

The typical Spanish inheritance takes some three to six months to complete where a valid Spanish Will exists. Without a Will, the process typically takes considerably longer. Subject to some exceptions, foreign documents should be apostilled and officially translated into Spanish to be used in Spain.

Step 1 — Obtain the Certificate of Last Will

The first task is to apply to Spain’s Central Will Registry (Registro de Últimas Voluntades) for a Certificate of Last Will. This search confirms whether a Spanish Will exists and, if it does, the details of the Notary where it is held. If no Spanish Will is registered, the next step depends on whether a foreign Will exists and can be used.

Step 2 — Obtain a Declaración de Herederos Abintestato (if necessary)

If there is no valid Spanish Will, the heirs must obtain a formal declaration from a Notary (or, in some cases, the courts) establishing who is entitled to inherit under the applicable law. This is a more lengthy and expensive process than having a valid Will in place.

Step 3 — Accept the inheritance and obtain the inheritance deed

The heirs accept the inheritance and appear before a Notary to execute the inheritance deed (acta de aceptación de herencia). At this stage the Notary checks that the property is correctly described in the deed and that the heirs are properly identified. The Notary will also explain the inheritance tax position (see Section E).

Step 4 — Pay any debts of the estate

The estate is responsible for any debts of the deceased, whether mortgages, unpaid property taxes, or other liabilities. These should be discharged from the estate’s liquid assets. Where the estate lacks sufficient liquid assets to pay all debts, the heirs may face difficult choices about which assets to sell or which creditors to pay.

Step 5 — Pay Spanish inheritance tax

Spanish inheritance tax (Impuesto sobre Sucesiones y Donaciones, ISD) should be paid within six months of the date of death. A further six-month extension can be requested, but only if the request is made within the first five months.

The tax is self-assessed: heirs are responsible for calculating and paying the correct amount. Your lawyer or the Notary manages this process, prepares the tax return, and files it with the relevant regional authority.

Step 6 — Register the property and transfer the assets

Once the inheritance tax has been paid, the Land Registry should be updated to reflect the new owner or owners. After registration is complete the inherited property can be sold, mortgaged, or transferred again. Bank accounts are transferred to the heirs once the appropriate documentation is presented to the bank.

E — Inheritance Tax in Spain

How much inheritance tax will heirs pay in Spain?

Spain’s inheritance tax (ISD) is administered at regional level, which creates substantial variation in the amount payable depending on where the property is located and where the deceased was habitually resident. The national base rate is a range of rates, plus possible coefficients, but most regions apply their own reductions and allowances that can dramatically reduce — or in some cases eliminate — the tax for direct heirs.

The amount of tax depends on three main factors: the value of the assets inherited, the relationship between the heir and the deceased (direct heirs — children, spouses, parents — receive higher allowances than more distant relatives or unrelated beneficiaries), and the heir’s existing wealth before the inheritance.

In Andalucía — where Vázquez Lawyers operates — significant allowances are available for spouses and children, substantially reducing the tax burden for direct heirs in most cases.

Since a 2014 ruling of the European Court of Justice, non-residents are entitled to apply the regional regime of the autonomous community where the property is located, rather than the less favourable national scale that previously applied to non-residents. This was a significant improvement for foreign heirs and means that a British heir inheriting an Andalusian property can benefit from Andalucía’s regional allowances.

Could the inheritance be taxed both in Spain and in the UK?

This depends on where the deceased was domiciled or resident for tax purposes and the nature of the assets. Spain has double taxation treaties with several countries covering inheritance. Where no treaty exists — and there is currently no comprehensive double taxation treaty between Spain and the UK specifically covering inheritance tax — a credit mechanism may apply, allowing the tax paid in one country to be offset against the liability in the other. The position requires consideration and depends on the specific facts.