Inheriting a property in Spain as a foreigner: applicable law, taxes and deadlines

When a foreign owner of a property in Spain dies, the heirs usually discover three things at once: that the house and the bank accounts are frozen until the estate has been accepted before a Spanish notary, that the tax clock starts running on the day of death, and that the law deciding who inherits is not always the one they expected. None of the three need be a problem if it is dealt with in good time. This guide explains what has to be done in Spain, in what order, and where the money is won or lost.

The first question: which law governs the estate

Since 17 August 2015, Regulation (EU) 650/2012 has determined which law applies to the estate of anyone who dies owning assets in Spain, whether or not they are an EU citizen (arts. 20 and 83). The general rule is the law of the State in which the deceased had their last habitual residence (art. 21), unless their will chose the law of their nationality (art. 22). The difference is enormous. Where a British national living in Alicante made no such choice, the estate passes under Spanish law, with its legítimas (forced heirship): children are entitled to two thirds of the estate (art. 808 of the Spanish Civil Code (Código Civil)), a concept that does not exist in English law and that may clash with what the deceased provided for in the will made at home.

If the deceased lived outside Spain, the applicable law will normally be that of their country, and the Spanish notary and land registrar may then require its content to be evidenced. Knowing in advance which law governs avoids surprises in the deed and disputes between the heirs.

The documents: what needs to be gathered

Paperwork is the slowest part when the heirs live abroad. You will need the death certificate; the certificate from the Registro General de Actos de Última Voluntad (General Register of Wills), which in Spain can only be requested once 15 working days have passed since the death, together with its equivalent in the home country; the will or wills; and the life insurance certificate. Foreign documents must be apostilled or legalised and accompanied by a sworn translation. If the estate is being administered in another EU Member State, the European Certificate of Succession (certificado sucesorio europeo) allows the heirs to prove their status in Spain without repeating the process. Each heir needs an NIE (foreigner identification number).

The deed: accepting the estate without travelling

The estate is accepted and divided in a deed executed before a Spanish notary, which is then registered at the Registro de la Propiedad (Land Registry) and allows the bank accounts to be released. The heirs do not need to travel: they can grant a power of attorney before a notary in their own country (apostilled and translated) or at the Spanish consulate, and their attorney signs in Spain on their behalf. If they wish to sell the property, the sale can follow straight on from the inheritance, although the tax side must be settled first.

Taxes and deadlines

The Impuesto sobre Sucesiones (inheritance tax) return must be filed within six months of the death. That period can be extended by a further six months, but only if the extension is requested within the first five (art. 68 of the Inheritance Tax Regulations (Reglamento del impuesto)), and late-payment interest is charged. This is where most money is at stake: following the case law of the Supreme Court and the rulings of the Dirección General de Tributos (the Spanish tax policy directorate) itself, non-resident heirs, including those from outside the EU, may apply the rules of the relevant autonomous community (if the deceased was not resident in Spain, those of the community where the assets of greatest value are located). And the differences between communities are considerable: the Comunitat Valenciana, for example, has granted spouses, children and parents a 99% relief on the tax payable since May 2023 (Ley 6/2023). Applying the right rules, or failing to, can mean tens of thousands of euros.

On top of this comes the plusvalía municipal (municipal land value tax), with a six-month deadline that can be extended to one year, and any Impuesto sobre la Renta de No Residentes (non-resident income tax) still owed by the deceased must be regularised. It is also worth thinking now about a possible sale: the value at which the property is declared in the estate will be its acquisition value when the heirs sell it, so setting that value with care reduces the tax on the future sale.

What can be done during your lifetime

For a foreign owner, the most useful tool is a Spanish will covering the assets located in Spain, coordinated with the will made at home and containing an express choice of law if the owner wants the estate to be governed by the law of their nationality. It is a simple and inexpensive document, it is recorded in the General Register of Wills and it spares the heirs months of formalities and uncertainty about the applicable law. It is worth reviewing alongside the way the property is held, which we explain in our guide to investing in Spanish property from abroad.

Frequently asked questions

Is a will made in my home country valid in Spain?

Generally yes, if it is formally valid, but it will have to be produced apostilled and translated and the foreign law will often need to be evidenced. A Spanish will for the assets in Spain makes the process much simpler.

Do the heirs have to come to Spain?

No. A power of attorney granted before a notary in their country (apostilled and translated) or at the Spanish consulate is enough. Their attorney signs the acceptance and handles the remaining formalities in Spain.

How long is there to pay the inheritance tax?

Six months from the death, extendable to twelve if the extension is requested within the first five months, with late-payment interest.

What happens if the deceased lived in Spain and left no will?

As a general rule, Spanish law applies, including forced heirship, even if the deceased was a foreign national. The heirs are determined by a declaration before a notary and the process takes longer, which is why making a will is so advisable.

How we handle it at Satya Legal

We handle estates with a foreign element from start to finish, in Spanish, English, German, French or Italian: assessment of the applicable law and the tax, documents, apostilles and sworn translations, powers of attorney, the deed, taxes, registration and, if desired, the sale. We also prepare Spanish wills for foreign property owners. You can see how we work on our cross-border inheritance page. Fixed-fee quotes and a free first consultation.