5 Inheritance Mistakes to Avoid in Spain

When dealing with inheritance in Spain – whether you’re planning your own estate or handling a relative’s – certain pitfalls can cause legal headaches, extra taxes, or family disputes. Here are five common inheritance mistakes to avoid in Spain, with tips on how to steer clear of them:

1. Not Making a Spanish Will for Spanish Assets
The Mistake: Failing to have a Spanish will because you assume your foreign will covers everything.
Why It’s a Problem: As we’ve discussed, without a Spanish will, your heirs may face a long and costly process to transfer your Spanish property or bank accounts. They might need to translate and legalize foreign documents, and navigate Spanish intestacy if your foreign will isn’t accepted as-is. This can delay inheritance by months or years.
How to Avoid: Make a Spanish will specifically for your Spanish assets. It’s usually straightforward and inexpensive. Ensure it doesn’t accidentally revoke your main foreign will (limit its scope to Spanish property). By doing so, you localize the inheritance process, making it far simpler for your heirs to inherit in Spain. This is arguably the number one mistake expats in Spain can easily fix.

2. Ignoring Spanish Forced Heir Rules (or Not Using EU Law to Override Them)
The Mistake: Assuming you can distribute your estate however you want, not realizing Spain’s forced heirship will give a set share to children or parents regardless of your wishes. Alternatively, not taking advantage of EU Regulation 650/2012 to choose your own national law.
Why It’s a Problem: If you draft a will leaving everything to your spouse, but Spanish law applies and you have children, your children could claim their legal portion (legítima). This could unravel your plans and possibly cause conflict or even litigation among family members.
How to Avoid: Plan around forced heirship. If you’re Spanish or a foreigner who can’t/didn’t opt out, at least be aware and structure your will to respect those shares (or have valid cause to disinherit, which is rare). If you’re an expat from elsewhere, use EU Regulation 650/2012 to elect your national law in your will. This single clause can allow you to bypass forced heir rules entirely (if your national law has none), so you can leave assets as you truly intend. Many people forget this or don’t know – and it’s a powerful tool that can prevent a huge mistake of your wishes not being followed.

3. Missing the 6-Month Deadline for Inheritance Tax
The Mistake: Not settling inheritance tax (Impuesto de Sucesiones) within 6 months from the date of death, perhaps because paperwork wasn’t ready or one assumed it could wait.
Why It’s a Problem: After 6 months, interest and penalties start accruing on any tax due. Many inheritors don’t realize the clock is ticking regardless of whether the estate is fully sorted. This can lead to unnecessary financial cost. Also, missing plusvalía municipal’s 6-month deadline for inherited property can incur surcharges.
How to Avoid: Mark the 6-month date and file an inheritance tax return or extension request in time. Spain allows a one-time extension of 6 more months if you request within the first 5 months. Even if you can’t fully administer the estate by then (perhaps waiting on foreign probate), you can file a provisional self-assessment and pay an estimated amount to stop penalties. Or pay the tax out of pocket and later reimburse from the estate. Basically, don’t let the deadline slide. This is a mistake of inaction. The Spanish tax office doesn’t forget – interest (usually around 3-4% annually) and a surcharge (5% to 20% depending on how late) will apply. That’s money easily saved by being prompt or proactive with an extension.

4. Failing to Document and Locate All Assets (Losing Track of the Estate)
The Mistake: Heirs not knowing all the assets the deceased owned, or the deceased not leaving clear records. Bank accounts, insurance policies, even properties can be “lost” if no one knows about them. Also, not checking the Central Wills Registry or Insurance Registry in Spain for possible wills or life insurance contracts.
Why It’s a Problem: Assets could go unclaimed (banks might eventually send balances to the state if decades pass without claim). Meanwhile, there might be bills or taxes accruing on a property heirs are unaware of. Also, if a Spanish will exists that heirs don’t know about, they might incorrectly distribute the estate per an older will.
How to Avoid: If you’re planning your estate, make a list of assets and update it. Include account numbers, property addresses, etc., and store it with your will or tell executors where to find it. Also list debts – so heirs know what needs to be paid. If you’re an heir, be thorough: get the Certificado de Últimas Voluntades to see if the deceased had a Spanish will. Also get the certificate of life insurance contracts (Registro de Seguros) to identify any insurance payouts. Check property registries for real estate holdings, and consider that the deceased might have assets abroad or unknown. One silent mistake is not looking for these, thereby missing out on assets or failing to secure them legally. Don’t assume everything will come to you – actively search and use official registries.

5. Overlooking Inheritance Tax Planning and Regional Variations
The Mistake: Treating inheritance tax as uniform or not planning for it at all. For example, an expat might assume Spanish inheritance tax is sky-high and take drastic measures (like selling property before death or putting it in a company) that aren’t necessary. Or conversely, ignoring simple steps that could reduce tax (like structuring a gift or acquisition to qualify for allowances). Also, not considering that each Autonomous Community in Spain has different tax benefits – a mistake is applying state rules when a much better regional exemption is available.
Why It’s a Problem: Either you pay more tax than needed, or you go through unnecessary cost/complexity to avoid a tax that might have been minor or zero. For instance, not knowing that in Andalusia, as of recent years, children/spouses effectively pay nothing up to huge values. Or not realizing that as a non-resident EU heir, you’re entitled to the same regional reductions as residents (some people still think non-residents pay a lot more, which was true pre-2015, but not now).
How to Avoid: Do some inheritance tax planning: Consult with a tax advisor about your specific situation. If your estate will go to close family, know the regional rules – e.g., if your property is in Valencia region, your kids each have a €100k allowance and 99% tax reduction. Maybe there’s no tax concern at all, meaning elaborate avoidance schemes are unnecessary. Conversely, if you’re leaving assets to a non-relative (Group IV, which has no reductions and high tax), plan for that: perhaps use life insurance (which offers a fixed €9k exemption per beneficiary) or gradual gifting or other vehicles to mitigate the eventual tax. Also, remember the plusvalía tax on property – plan liquidity for that too. The mistake is doing nothing and then heirs scramble – or doing something misguided (like putting your house in a foreign company, which nowadays often creates more tax issues than it solves). Awareness of current laws (which do change) is key – for example, many still don’t know that non-residents from outside EU can now benefit from some regional rules as well (after some legal changes in Spain following EU pressure). So, keep informed or get advice rather than assume and blunder.

Conclusion: Inheritance in Spain doesn’t have to be difficult, but these five mistakes are common stumbling blocks:

• Failing to have a Spanish will,
  
  

• Neglecting forced heir/choice-of-law issues,
  
  

• Missing tax deadlines,
  
  

• Not keeping track of assets/documentation,
  
  

• and poor tax planning or ignorance of local rules.
  
  

By proactively addressing each – setting up the right wills, making the right legal choices, marking deadlines, organizing your estate information, and planning for taxes – you can save your family from avoidable troubles. In estate matters, an ounce of prevention is worth a pound of cure. Avoid these mistakes, and you’ll ensure a smoother, more efficient inheritance process in Spain, honoring your wishes and protecting your heirs’ interests.