Foreigners Inheriting Property in Spain: What You Need to Know

First Steps: Documentation and Identification

If you live abroad and a relative left you property in Spain, the process often starts with documents:

• Death Certificate: If the person died in Spain, obtain the Spanish death certificate. If they died abroad, you’ll need that country’s death certificate, then get it apostilled and translated into Spanish.
  
  

• Will or Declaration of Heirs: Determine if the deceased left a Spanish will. As mentioned in earlier articles, a Spanish will simplifies things. You’d get a Certificado de Últimas Voluntades (Last Will Certificate) to see if a Spanish will exists. If so, get a copy from the notary. If no Spanish will but there’s a foreign will, that will must be validated for use in Spain (which means, in practice, it might need to go through a probate process in its home country first, then be legalized and translated). If there’s no will at all, a Spanish notary or court must issue a declaration of heirs according to Spanish intestacy rules (which for a foreigner may consider their national law too – it gets complex, but generally, spouse and children would be heirs similarly).
  
  

• NIE Number: Perhaps the most crucial thing for a foreign heir: you must have an NIE (Número de Identificación de Extranjero) to inherit and appear in Spanish legal documents. The NIE is a tax identification number for foreigners. Without it, you cannot be registered as the new owner of a property nor pay the taxes due. If you don’t have one, apply ASAP. You can do this at a Spanish consulate or through a lawyer in Spain with a power of attorney. EuroWeekly’s legal advice column stresses: “Whether you’re inheriting property, money, or any assets in Spain, you must obtain an NIE to be legally registered as the new owner”. So, no skipping this. It’s a first box to tick.
  
  

• Representation: If you cannot travel to Spain to handle the paperwork, you can appoint a representative (often a Spanish lawyer or gestor) via a power of attorney to act on your behalf. This POA must be notarized and apostilled in your country or done at a Spanish consulate, and it should specifically authorize inheritance and property transfer tasks.
  
  

Navigating Spanish Inheritance Law vs. Your Home Law

One tricky aspect is determining which country’s law applies to the inheritance. Spain will apply the law of the country of the deceased’s nationality by default for foreigners (due to EU Regulation 650/2012) unless the deceased was actually habitually resident in Spain and had not chosen otherwise.

What this means for you as an heir:

• If the deceased was an expat living in Spain but say a UK national, it’s likely they could choose UK law for their succession (many do in their wills). If they did, distribution follows the will or UK rules (which gives freedom). If they didn’t make a choice, Spanish law might apply, meaning forced heirs (like children) are entitled to a portion. So the deceased’s situation determines how the estate is split. As an inheritor, you mostly deal with the result – either you’re named to inherit specific assets via a will, or under the default law you’re one of the legal heirs.
  
  

• You as a foreign heir don’t really get to pick the law – it’s about the deceased. But be aware of this issue, so you’re not surprised if, for example, your late parent’s Spanish will only left you the “free disposal part” of their estate and left the rest to another sibling due to Spanish forced heir rules. If your parent was a foreigner, perhaps they chose their national law to avoid that. The key point: the rules of who inherits what might differ from your home expectations.
  
  

• If the inheritance includes a trust or other mechanism from abroad, note that Spain doesn’t recognize trusts directly. Any trust assets would be treated in some manner akin to direct ownership for tax and transfer. This often requires specialized advice.
  
  

Inheritance Tax and Double Taxation Issues

As a foreign inheritor, you’re likely concerned about taxes – both Spanish inheritance tax and possibly taxes back home.

Spanish Inheritance Tax (Impuesto de Sucesiones):

• Spain taxes based on the location of assets and/or residency of heirs. Typically:
  
  

  • If you, the heir, are a non-resident of Spain, you pay Spanish inheritance tax only on assets located in Spain (the Spanish property, Spanish bank accounts, etc.). You do not owe Spain for assets abroad.
    
    

  • The rate and allowances depend on the region where the asset is located (if real estate) or where the deceased was resident. After a 2015 court ruling, non-resident EU citizens must be given the same favorable regional tax allowances as a resident. So if your deceased relative lived in Andalusia, for example, you as a non-resident heir get the same nearly 0% tax breaks on inheriting their house as a local would. If you’re non-EU (e.g., British post-Brexit, American, etc.), Spain in practice now often extends similar treatment due to changes in law, but it can depend – recently, regions like Valencia apply equal allowances to all heirs regardless of nationality, but it’s worth checking current rules or a tax advisor.
    
    

  • You must file an inheritance tax return in Spain (likely in the region of the property or of the deceased’s last residence) within 6 months of death, whether or not any tax is due. Non-residents usually file to a specific tax office (like in Madrid for all non-residents) or increasingly to the region of the property thanks to law changes.
    
    

  • Common scenario: A foreigner inherits a property in Spain from, say, their parent. If it’s a close relative, many regions have near 0% tax. Example: a child inheriting a parent’s property in the Valencian region: first €100k tax-free plus 99% reduction beyond that. So often, no Spanish tax due or very little. But you still must do the paperwork to claim that exemption.
    
    

  • If the relationship is not close (you inherit from a friend or an uncle), tax can be higher. Non-residents from EU should still get same allowances as residents – so in some regions uncles/nieces get some new breaks now, but others still heavy tax.
    
    

Your Home Country Tax:

• Some countries (like the US) don’t impose tax on the heir for foreign inheritance (the US only taxes estates of its citizens above a high threshold). Others like the UK have estate tax but if the deceased was UK domiciled, their whole estate including foreign property could be taxed.
  
  

• There are few inheritance tax treaties. Spain has them with only a handful of countries (France, Sweden, Greece). If you’re inheriting and your country taxes your receipt of inheritance or taxes the estate, you might worry about double tax. Typically:
  
  

  • If the deceased or heir is UK, note: UK-Spain have no inheritance tax treaty. But the UK only taxes the estate if the deceased was UK-domiciled. So if a Brit living in Spain bequeaths Spanish property, Spain will tax that property, and the UK might also include it in the estate’s tax. The UK does allow an unilateral relief: if foreign inheritance tax was paid on a property, HMRC can give credit for that foreign tax against UK tax on that asset (up to the amount of foreign tax) – not a treaty, but domestic law relief. One should get professional advice in such cases.
    
    

  • If you’re inheriting as a resident of a country like Germany or France which taxes heirs on worldwide inheritance, you may be able to credit Spanish tax against home tax due to either treaties or national laws. For instance, if a French resident inherits Spanish assets, France will tax it but the Spain-France treaty prevents double taxation by either exempting or crediting taxes.
    
    

  • Spanish law itself says if a Spanish resident heir paid inheritance tax abroad on an asset, they can deduct the lesser of the foreign tax or Spanish tax on that asset from their Spanish tax. Conversely, if you’re a Spanish resident inheriting assets abroad, you pay Spanish tax on them but can deduct foreign inheritance tax paid up to Spanish amount.
    
    

For you as a foreign heir of Spanish property, likely only Spanish inheritance tax is at play. But check if you need to report or pay tax in your own country for this inheritance. Some countries have no tax on inheritances (e.g., Australia, New Zealand, etc. have none; the US treats inheritances as not income). Others like Ireland, South Africa do tax the beneficiary. If taxed in your country, see if there’s credit for Spanish tax to avoid double hit.

Plusvalía Municipal: If you inherit real estate in Spain, there’s also the municipal “plusvalía” tax on land value increase. As the new owner, you or the estate must pay that to the town hall within 6 months. It’s usually not huge if ownership was long or property not significantly appreciated, but it can be several hundred or a few thousand euros. Some regions heavily reduced it for inheritances to spouses/kids. Still, be prepared that when you inherit property, you’ll owe this local tax. A site like PlusvaliaFacil.com can calculate it or even help challenge it if it seems incorrectly high.

Costs: Also consider other costs: notary fees, land registry fees to register the change (which are modest), possibly a lawyer or gestor fee if you use one, and if selling the property later, capital gains tax (though as heir you get a “step-up” basis to market value at death for Spanish CGT, meaning you won’t be taxed on increase prior to inheritance).

Practicalities of Transferring the Property

Once you’ve done the inheritance acceptance as described earlier (and as a foreigner, likely via a power of attorney to a local notary):

• The property will be formally adjudicated to you in the Escritura de Herencia (inheritance deed).
  
  

• You then take that deed (after paying tax and getting it stamped by tax authority) to the Property Registry (Registro de la Propiedad) to register the property in your name. If you’re handling from abroad, your representative will do this. It’s crucial to update the registry – that’s proof of your ownership and needed if you ever want to sell.
  
  

• The registrar will require proof that inheritance tax was paid (or not due) and plusvalía paid.
  
  

• As a new owner, you should also inform:
  
  

  • The Cadastre for property tax (IBI) records (often through local town hall).
    
    

  • Community of owners if it’s in a condo.
    
    

  • Insurers, utility companies, etc., to transfer accounts to your name.
    
    

Getting Money Out: If you inherited a Spanish bank account or proceeds from a sale of the property, you might want to repatriate money. Non-residents can freely transfer money out of Spain, but banks may ask for documentation showing it’s inheritance (to justify large transfers and for anti-money laundering). Provide the inheritance deed and tax proof; typically, they then allow the transfer. Also note, as a non-resident, the bank might withhold 19% of interest income by default – but that’s a separate tax topic.

Multiple Heirs & Selling: If you inherit jointly with others (say you and siblings inherit a holiday home):

• You all become co-owners as per the inheritance deed (each with a percentage).
  
  

• Any decision to sell or manage needs cooperation. If one wants out, you can agree to sell the property and split proceeds, or one heir can buy out the others.
  
  

• If you all live abroad, consider granting one person a power of attorney to handle sale formalities. And know that when selling, non-resident sellers currently are subject to 19% capital gains tax on profits (but again stepped-up basis at inheritance might minimize the gain). Buyers also withhold 3% of sale price as an advance tax payment when a non-resident sells.
  
  

• If you keep the property, you’ll have to handle things like non-resident income tax on the property (even if not rented, Spain charges a small imputed income tax to non-resident owners).
  
  

• Plus, if renting it out, you face Spanish tax on rental income (19% for EU residents, 24% for others on gross, though those details go beyond inheritance – but just to know).
  
  

• One piece of advice often given (like by international lawyers): once you inherit, make a Spanish will for yourself if you plan to keep the Spanish property. You now are a foreigner owning in Spain, and it’s wise to ease the future for your heirs by having a Spanish will (tying to Article #6). That prevents repeating complexities next generation.
  
  

Cultural/Administrative Differences

Foreign heirs often find Spanish bureaucracy a bit slow or requiring patience. Some differences:

• Language: All official proceedings will be in Spanish. If you don’t speak it, hire someone bilingual. Documents must be in Spanish, so expect translations of foreign documents.
  
  

• Timeframe: Settling an inheritance in Spain, if straightforward, might take a couple of months to gather papers and sign. If heirs are abroad, factor mailing times or consulate appointments.
  
  

• Heir’s presence: You don’t have to come to Spain if you can do POA. Many international firms (like CostaLuz Lawyers, etc.) help clients remotely. It’s common.
  
  

• Costs up front: Spanish notaries and registrars have fees that must be paid. Ensure funds are available to cover taxes and fees. If the inherited bank account has money, sometimes banks allow paying taxes directly from the account of the deceased before releasing the rest.
  
  

Conclusion

For a foreigner inheriting in Spain, the process is manageable with the right guidance. Here’s a recap of what you need to know:

• Get an NIE: Non-negotiable, you need it to be an heir in Spanish records.
  
  

• Sort Legal Docs: Identify any will, get it translated if foreign. Use the Spanish last wills registry if needed. Be ready to produce an apostilled death cert.
  
  

• Use Local Help: Consider hiring a Spanish lawyer or professional to navigate local law and tax. They can act via power of attorney, meaning you might not need to travel.
  
  

• Understand the Law: Know that Spain may apply different succession rules, but as an heir you generally follow what the will or law says. If you feel something’s off (like forced heir share not respected, or multiple jurisdictions involved), get advice. Typically, though, if you’re named, you inherit; if not, you don’t, aside from challenging a will which is another subject.
  
  

• Taxes: Don’t overlook Spanish inheritance tax. Often, thanks to regional exemptions, it’s small or zero for close relatives. But you must file the forms. Plan for plusvalía if property’s involved.
  
  

• Administrative Steps: Change property title, pay relevant taxes, close or retitle bank accounts. Spanish banks may ask heirs to provide not just the will but a “Certificado de Actos de Última Voluntad” (to confirm the will presented is the latest) and a “Certificado de Contratos de Seguro” (to check for life insurance policies). It’s routine.
  
  

• Possibly Inherit Twice? If you’re in your home country, check if you owe any inheritance tax or have to report the inheritance there. Many countries don’t tax recipients, but a few do. Ensure compliance to avoid future trouble.
  
  

• Property Use or Sale: Once you have it, decide if you’ll keep the Spanish property or sell. Each has further obligations (like ongoing property taxes and community fees if keep, or capital gains if sell). But at least it’s yours to decide.
  
  

Inheriting property in a foreign land can be daunting, but Spain’s processes are fairly clear-cut. Thousands of foreign heirs go through this each year (especially Brits, Germans, Scandinavians inheriting holiday homes). Spanish officials are used to it. The key is to tackle the formalities step by step, and don’t ignore them – leaving an inheritance unaccepted can cause accruing penalties or legal complications down the road.

When in doubt, professional advice is worth it, as cross-border inheritance has its quirks. But armed with the knowledge from this article, you’ll at least know where to begin and what to watch out for, ensuring you get through the process as smoothly as possible and can enjoy (or responsibly deal with) the assets your loved one left for you in sunny Spain.

(Our next article will address a related tax concern for expats: if you live abroad and inherit in Spain, do you have to pay taxes twice? Stay tuned for that discussion on double taxation.)