Inheriting a property in Spain: a legal guide for foreigners in 2025

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

European legal framework: Regulation (EU) 650/2012

Since August 2015, the European Inheritance Regulation (650/2012) has been in force, which establishes a unified criterion:

• By default, the law applicable to the succession is that of the country in which the deceased had his or her habitual residence at the time of death.

• However, the Regulation allows the deceased (testator) to expressly choose in his will the law of his nationality to govern the succession, even if he resides 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 he has indicated in his will that he wishes to apply the law of his 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.

Inheritances in Spain for foreigners: key aspects

1. What is inherited?

In Spain, all the assets of the deceased are inherited: real estate, bank accounts, vehicles, etc. If there are properties in different countries, there may be an international succession with the application of several laws.

2. Will in Spain

It is recommended that foreigners with properties on the Costa Blanca grant a Spanish will, in which they expressly indicate whether they wish their national law to apply. This avoids uncertainty and speeds up the inheritance adjudication procedures.

3. Distribution and reserved shares

• In Spanish law, there is the figure of the hereditary legitimate, which reserves part of the inheritance to the children or descendants.

• However, if the deceased opts for the law of his or her country, the inheritance rules of that nationality will apply (some legislation, such as the English law, allows greater freedom to dispose of the assets).

4. Inheritance taxes in Spain

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

• In the Valencian Community, the discounts allow significant reductions for spouses and children.

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

5. Land Registry

In order for the heir to be legally recognised as the owner of the property, it is mandatory to register the inheritance adjudication in the corresponding Land Registry.

Does Spain respect foreign law in inheritance?

yes. In accordance with European Regulation 650/2012:

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

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

• This means that a Polish, German or French citizen can decide that their inheritance in Spain is regulated by the legislation of their home country.

Recommendations for foreigners with properties in Spain

1. Grant a will in Spain, expressly indicating which law should be applied.

2. Seek advice from a lawyer specialising in international inheritance law, to coordinate the assets held in different countries.

3. To plan the inheritance fiscally, to take advantage of the regional reductions in Inheritance Tax.

4. Keep the documentation in order (NIE, deeds, death certificates and last wills).

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, which provides flexibility and legal certainty. In any case, assets located in Spain will be subject to Spanish Inheritance Tax, and in order to legally inherit it is necessary to register the property in the Land Registry.

At Estrellas Properties we accompany our clients in every step, from purchase to inheritance planning, working with lawyers specialized in international inheritance law.

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