Property Inheritance in Spain: Tax, Law and Planning

Spanish Inheritance Law

If you own property in Spain, Spanish inheritance law applies to that property regardless of your nationality. Since August 2015, EU Regulation 650/2012 allows EU citizens to choose the law of their nationality to govern their entire estate. Non-EU citizens should also specify this in their will, as Spanish courts increasingly respect such choices.

Forced heirship (legítima)

Under Spanish law, you cannot freely dispose of your entire estate. One-third must go to your children in equal shares (legítima estricta). Another third goes to your children but can be distributed unequally (mejora). Only the final third (libre disposición) can be left to anyone you choose. If you want to avoid these restrictions, you must specify in your will that you choose the law of your home country.

Spanish Inheritance Tax

Inheritance tax (Impuesto de Sucesiones y Donaciones) in Spain varies by region. In Andalucía, significant reforms have reduced the burden:

• Spouses, children and parents: up to €1,000,000 per heir is effectively exempt in Andalucía (99% reduction on the tax quota for close relatives)
• Siblings, nieces, nephews: much higher rates apply, typically 7% to 36% depending on the amount and pre-existing wealth
• Unrelated heirs: highest rates, 7.65% to 36.50% with multiplier coefficients up to 2.4

The tax must be paid within 6 months of death. A 6-month extension can be requested within the first 5 months.

Making a Spanish Will

If you own property in Spain, make a Spanish will. This is separate from your home country will and covers only your Spanish assets. Benefits:

• Faster probate process (avoid translating and apostilling foreign documents)
• Clearer instructions for your heirs
• Lower legal costs at the time of inheritance
• Your home country will should explicitly exclude Spanish assets to avoid conflicts

A Spanish will costs €50 to €150 at a notary. It is registered in the Central Registry of Last Wills (Registro General de Actos de Última Voluntad).

The Inheritance Process

When someone dies owning Spanish property:

1. Obtain the death certificate and last will certificate from the Central Registry (available 15 days after death)
2. Get a copy of the will from the notary where it was signed
3. Obtain a NIE for each heir (required for tax and property registration)
4. Have the inheritance deed (escritura de aceptación de herencia) signed before a Spanish notary
5. Pay inheritance tax within 6 months
6. Register the property transfer at the Land Registry
7. Update the Catastro records

Planning Tips

• Consider ownership structure. Joint ownership with right of survivorship can simplify transfers.
• Review your will every few years, especially after life events like marriage, divorce or children.
• Non-residents: the €1,000,000 Andalucía exemption applies to all tax residents of Spain, and to non-residents inheriting property in Andalucía since a 2018 court ruling.
• Life insurance can provide liquidity to pay inheritance tax without forcing a quick property sale.

Inheritance planning is part of the total cost of owning property in Spain. Use our free calculator to estimate your total costs and think about the long-term financial picture.