If you own a home, a car or a bank account in Spain, your estate will eventually touch the Spanish system, even if you never become a tax resident here. The good news is that European rules let many foreigners keep the inheritance law of their home country, and a little planning now can spare your family a great deal of cost and confusion later.
How Spain decides which law applies
Since 2015, most cross-border successions in the EU are governed by an EU regulation often called Brussels IV (Regulation 650/2012). The general rule is straightforward: the law that governs your estate is usually the law of the country where you were habitually resident at the time of death.
For a foreigner living in Spain, that default would generally mean Spanish succession law applies. This matters because Spain has a concept of forced heirship (la legítima): a fixed share of the estate is reserved for certain relatives, typically children, so you may not be free to leave it to whomever you wish.
The regulation also gives you a way to plan around this. You may make a choice of law, electing the law of your nationality to govern your succession instead. Many British, Irish, German and other nationals consider this to apply their home law, which often allows greater freedom to choose heirs. The choice generally has to be made expressly, most commonly in a will, and how it works in practice can depend on your circumstances.
A point of caution on nationality
Choosing your national law affects who inherits, but it does not change where tax is paid. Spanish inheritance tax can still apply to Spanish assets regardless of which succession law governs. These are two separate questions, and confusing them is a common and costly mistake.
Why inheritance tax varies so much between regions
Spain levies Inheritance and Gift Tax (Impuesto sobre Sucesiones y Donaciones). While the national framework sets the broad structure, Spain's autonomous communities can apply their own reliefs, allowances and reductions. The result is that the tax on an otherwise similar inheritance may differ significantly depending on the region.
In broad terms, several regions have introduced generous reductions for close family members, while others are less generous. Because these policies are set regionally and are revised from time to time, treat any comparison you read as a general picture only, not a fixed promise of what you or your heirs would pay.
- Relationship to the deceased tends to matter a great deal: spouses and children are usually treated more favourably than distant relatives or unrelated heirs.
- How the asset or the deceased connects to Spain can help determine which region's rules and reliefs apply.
- Non-resident heirs may, in many cases, access relevant regional reductions on Spanish assets following changes that aligned the treatment of EU and non-EU parties, but the mechanics are technical and worth checking.
Because rates, allowances and regional reliefs are adjusted frequently, do not rely on a figure you read online. Rules change, so confirm the current thresholds and reliefs for the relevant region with a lawyer or tax adviser.
Wills covering your Spanish assets
You are not generally required to have a separate Spanish will, but many advisers suggest a Spanish will limited to your Spanish assets. It is typically signed before a Spanish notary and registered centrally, which can make the estate quicker and cheaper to administer than relying solely on a foreign will that must be translated, legalised and interpreted.
A well-drafted Spanish will often does two things at once: it disposes of your Spanish property and, where appropriate, records your choice of national law under the EU regulation.
Keeping wills consistent
If you have a will in your home country and a separate Spanish will, they need to be coordinated. A common pitfall is a later will accidentally revoking an earlier one. Each will should be carefully worded to deal only with the assets in its own country and to leave the other untouched.
What your heirs will actually face
Settling a Spanish estate usually involves gathering documents such as the death certificate, a certificate from the central wills registry, the original or an authorised copy of the will, and a Spanish identification number (NIE) for each heir. There are also deadlines for filing and paying inheritance tax, commonly understood to be around six months from death with the possibility of an extension, though the details can change. Missing a deadline can trigger surcharges, so heirs should seek advice promptly.
Practical steps to consider now
- Consider a Spanish will for your Spanish assets and whether to elect your national law.
- Check how your home-country will interacts with it, so neither cancels the other.
- Find out which region's tax rules are likely to apply and what reliefs your intended heirs could claim.
- Make sure your heirs know where documents are kept and that they will probably need an NIE.
- Review everything after major life changes: marriage, divorce, new children, a property purchase or a move between regions.
A final word
Spanish succession sits at the meeting point of EU law, national inheritance rules and regional tax, and small drafting choices can have large consequences for your family. This guide is general information, not advice for your particular situation, and the rules can change over time. Before you sign anything, it is well worth speaking to a qualified local lawyer who can confirm the current rules, weigh your choice of law, and help tailor a will to your assets and your family.