Inheriting Property in Spain: Legal Guide for Foreigners

Inheriting Property in Spain: Legal Guide for Foreigners

The inheritance of real estate in Spain is a complex issue that combines Spanish civil law with rules of private international law. More and more foreign families own properties on the Costa Blanca, and a key question arises: which law applies when a foreign property owner dies?

European legal framework: Regulation (EU) 650/2012

Since August 2015, the EU Succession Regulation (650/2012) has been in force, establishing a unified criterion:

  • By default, the law applicable to the succession is that of the country where the deceased had their habitual residence at the time of death.

  • However, the Regulation allows the person whose estate is being passed on (the testator) to expressly choose in their will the law of their nationality to govern the succession, even if they reside in another country.

Consequently:

  • If a Polish, German, or Belgian citizen dies while residing in Spain, the inheritance will be governed by Spanish law, unless their will states that they wish to apply the law of their country of origin.

  • Spain, as an EU Member State (except Denmark, Ireland and the United Kingdom, which do not apply the Regulation), respects this choice.

Inheritance in Spain for foreigners: key points

1. What is inherited?

In Spain, you inherit all of the deceased’s assets: real estate, bank accounts, vehicles, etc. If there are properties in different countries, an international succession may occur with the application of multiple legal systems.

2. Making a will in Spain

It is advisable for foreigners with properties on the Costa Blanca to make a Spanish will, in which they expressly state whether they want their national law to apply. This avoids uncertainty and speeds up the inheritance allocation process.

3. Distribution and reserved shares

  • Under Spanish law, the reserved inheritance (legítima) ensures that part of the estate is reserved for children or descendants.

  • However, if the deceased chooses the law of their country, the succession rules of that nationality will apply (some legal systems, such as the English one, allow greater freedom to dispose of assets).

4. Inheritance tax in Spain

The Inheritance and Gift Tax (ISD) applies to all assets located in Spain, regardless of the beneficiary’s nationality.

  • In the Valencian Community, tax relief allows significant reductions for spouses and children.

  • However, non-resident heirs must still file the tax in Spain.

5. Land Registry

For the heir to be legally recognized as the owner of the property, it is mandatory to register the inheritance award in the Land Registry for the corresponding property.

Does Spain respect foreign law in succession cases?

Yes. Under European Regulation 650/2012:

  • Spain respects the application of the deceased’s national law if this has been established in the will.

  • In the absence of a choice, Spanish law will apply to assets located in Spain if the deceased resided here.

  • This means that a Polish, German, or French citizen can decide that their inheritance in Spain will be governed by the legislation of their country of origin.

Recommendations for foreigners with property in Spain

  1. Make a will in Spain, stating expressly which law should apply.

  2. Seek advice from a lawyer specializing in international succession law, to coordinate assets held in different countries.

  3. Plan the inheritance for tax purposes, to take advantage of regional reductions in Inheritance Tax.

  4. Keep your documents in order (NIE, deeds, death certificates, and last wishes).

The inheritance in Spain for foreigners is clearly regulated, but it requires planning. Thanks to the European Regulation, it is possible to decide which law will govern the succession, providing flexibility and legal certainty. In any case, assets located in Spain will be subject to Spanish Inheritance Tax, and to inherit legally it is necessary to register the property in the Land Registry.


At Estrellas Properties, we guide our clients at every step—from buying to inheritance planning—working with lawyers specialized in international succession law.

WhatsApp / Phone: +34 677 878 548 / +34 601 52 48 06
Email: info@estrellasproperties.com

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