Spanish Inheritance Rules on Property

By default, Spanish inheritance law applies to all property located in Spain, regardless of the owner's nationality. This means your Spanish villa, apartment, or land is governed by Spanish succession rules unless you take specific legal steps to choose otherwise.

The EU Succession Regulation (Brussels IV), in force since 2015, gives EU nationals the right to choose the law of their nationality to govern their entire estate. This is a powerful option, but you must explicitly state this choice in your will. If you don't, Spanish law applies by default.

Forced Heirship Rules

One of the most important concepts foreign buyers need to understand is forced heirship (legítima). Under Spanish civil law, you cannot freely distribute your entire estate. Two-thirds of your assets are reserved for forced heirs (herederos forzosos)—typically your children and, in some cases, your surviving spouse.

Only the remaining one-third can be distributed freely in your will. This can come as a significant surprise to British, American, or Scandinavian buyers who are accustomed to complete testamentary freedom in their home country.

It's worth noting that rules vary by autonomous community. Catalonia, the Basque Country, Navarra, Galicia, and the Balearic Islands each have their own succession regulations that differ from the national rules. Where your property is located matters.

In Spain, inheritance tax (Impuesto sobre Sucesiones y Donaciones) is paid by the person receiving the inheritance, not the estate itself. This is a key difference from countries like the UK where estate tax is deducted before distribution.

The amount owed depends on three main factors: the relationship between the heir and the deceased, the total value inherited, and the autonomous community where the property is located.

Regional differences can be dramatic. Madrid and Andalucía offer reductions of up to 99% for close relatives such as children and spouses, making inheritance nearly tax-free. Other regions like Valencia have historically been less generous, though recent reforms have improved allowances significantly.

Non-EU and Post-Brexit Considerations

British nationals, American citizens, and other non-EU buyers should pay particular attention. Historically, some regional tax benefits only applied to EU or EEA residents. Following landmark European Court rulings, non-residents now have access to the same state-level tax rules, but accessing regional allowances can still be more complex for non-EU citizens.

Post-Brexit, British buyers are no longer EU citizens. While legal protections have improved, the interaction between UK and Spanish tax rules requires careful professional planning. Double taxation agreements may help prevent paying inheritance tax twice, but they don't eliminate the need for Spanish-specific advice.

Have questions about your personal situation? Ask our inheritance and legal experts for free on PropertyInvestmentSpain.com.

A Spanish will is the single most important step you can take to protect your property and your family. While a foreign will can technically cover Spanish assets, having a separate Spanish will dramatically simplifies and speeds up the inheritance process for your heirs.

Without a Spanish will, your family may face months of delays, apostilled documents, sworn translations, and significantly higher legal costs to transfer the property. A Spanish will is executed by a local notary and registered with the Central Registry of Last Wills (Registro de Últimas Voluntades), making it immediately accessible when needed.

What Happens Without Any Will?

If you die without a valid will covering your Spanish property, Spanish intestacy rules apply. Your assets are distributed according to a fixed legal hierarchy: children first, then parents, then spouse, then extended family. This may not reflect your wishes at all, and the process involves significant legal costs and delays.

Key Planning Strategies

Beyond making a will, consider these practical steps to protect your property and reduce complications:

• Structure ownership carefully – How you hold the property (sole ownership, joint, or through a company) affects both tax and inheritance outcomes. Get advice before purchasing.
• Update wills when circumstances change – Marriage, divorce, new children, or changes in tax law should all trigger a will review.
• Coordinate wills across countries – Your Spanish will and home country will must not contradict each other. A specialist lawyer can ensure they work together.
• Understand your buying costs and taxes – Inheritance tax is one piece of the broader tax picture when owning Spanish property.