A Note Before We Begin
Losing a loved one is hard enough without having to navigate a foreign legal system. If you're reading this because someone has recently passed, we're sorry for your loss. This guide aims to make the administrative side as clear and manageable as possible.
The Basics: How Inheritance Works in Spain
When someone dies owning property in Spain, the inheritance is governed by Spanish law — even if the deceased was not Spanish and even if there's a foreign will.
Key principles:
- Forced heirship: Spanish law reserves a portion of the estate (legítima) for children or, if none, for parents and spouse. You can't freely dispose of your entire estate by will the way you can in common-law countries.
- Inheritance tax: The beneficiary pays tax on what they receive — not the estate. This is the opposite of the UK/US estate tax model.
- Regional variation: Each autonomous community (region) in Spain can set its own inheritance tax rules, including exemptions and reductions. Where the deceased lived matters enormously.
- 6-month deadline: The inheritance tax must be paid within 6 months of the date of death, though a 6-month extension can be requested.
Spanish Inheritance Tax
Inheritance tax (Impuesto de Sucesiones) is paid by each beneficiary on their share of the inheritance. The rate depends on:
- The amount received — progressive rates from ~8% to ~34%
- The relationship to the deceased — spouses, children, and parents get more favourable treatment than distant relatives or unrelated beneficiaries
- The pre-existing wealth of the beneficiary — if you already have significant assets, the multiplier increases
- The region — this is where it gets very variable
Regional Variations
Some regions offer near-total exemptions for close family members inheriting a primary residence:
- Andalusia: 99% exemption for spouses, children, and parents on inheritances up to €1 million
- Madrid: 99% exemption for close family members
- Catalonia: Significant reductions, but with different thresholds
- Valencia: 99% exemption for close family, with conditions
- Galicia, Asturias, and others: Various reductions apply
But other regions apply the national default, which can result in meaningful tax bills. This is why two people inheriting identical amounts can pay wildly different tax depending on where the deceased lived.
Non-Residents
If the deceased lived outside Spain but owned a property here, the inheritance tax is paid to the Spanish tax authority (Agencia Tributaria) at the national rate — regional exemptions typically don't apply. This can result in a much higher tax bill.
There are double taxation treaties between Spain and many countries that may allow you to offset tax paid in one country against tax owed in the other.
Spanish Wills vs Foreign Wills
Having Both
It's strongly recommended that anyone owning property in Spain make a Spanish will (testamento) in addition to any will in their home country. The Spanish will should deal specifically with Spanish assets.
Having a Spanish will:
- Speeds up the probate process in Spain dramatically
- Reduces translation and apostille costs
- Avoids conflicts between legal systems
- Makes things far easier on your family at a difficult time
If There's No Spanish Will
If the deceased only had a foreign will (or no will at all), the process is more complex:
- The foreign will must be apostilled and translated by a sworn translator
- A notary in Spain must accept the foreign will as valid under Spanish law
- If there's no will at all, Spanish intestacy rules apply — which follow the forced heirship principles mentioned above
The Probate Process in Spain
Here's what typically happens step by step:
- Death certificate — obtain a Spanish death certificate (or a foreign one, apostilled and translated)
- Will search — check the Spanish Central Wills Registry (Registro General de Actos de Última Voluntad) to see if a Spanish will exists
- Accept the inheritance — beneficiaries formally accept before a Spanish notary (this is called the escritura de aceptación de herencia)
- Valuation — the property must be officially valued (usually by a tasador — a valuer)
- Tax filing — file Form 650 (inheritance tax return) within 6 months of death
- Payment — pay the inheritance tax due
- Property registration — register the change of ownership in the Land Registry (Registro de la Propiedad)
If there are multiple beneficiaries, all must be present (or represented by power of attorney) at the notary.
What If You Want to Sell the Inherited Property?
You can sell an inherited property, but:
- You must complete the inheritance process first (acceptance, tax payment, registration)
- If you sell within a short period of inheriting, there may be capital gains tax on any increase in value between the date of death and the sale price
- Non-resident sellers face a 3% retention of the sale price, which is sent to the tax authority as an advance on capital gains tax
How a Gestor Can Help
Inheritance is one of the areas where a gestor is most valuable, especially for non-resident beneficiaries:
- Handling the tax filing (Form 650) within the deadline
- Coordinating with the notary for the acceptance of inheritance
- Arranging the property valuation
- Registering the property in the Land Registry
- Dealing with utility companies and town hall (IBI property tax)
- Liaising with your home country's legal representatives
- Ensuring you claim all available regional exemptions
Many gestors specialise specifically in inheritance and non-resident property matters. Given the 6-month deadline and the complexity of the process, engaging one early can save significant stress and money.
Final Thoughts
Inheriting property in Spain is a multi-step process with tight deadlines and regional variations that can dramatically affect the tax bill. If you own property in Spain, make a Spanish will now — it's one of the most thoughtful things you can do for your family. And if you're currently dealing with an inheritance, don't wait — the 6-month clock starts from the date of death, and the paperwork takes time.