Inheritance tax in Spain can range from near zero to over 30%, and the difference comes down entirely to where in Spain the assets are located. A property in Andalusia may cost the beneficiaries almost nothing in tax. The same property in Catalonia could result in a bill running to tens of thousands of euros. If you own assets in Spain - or stand to inherit them - Spanish inheritance law will affect you. The regional variation in tax is just one of several things worth understanding before it matters.
Does Spanish Inheritance Law Apply to Expats?
Yes. If you own assets in Spain - property, bank accounts, investments - Spanish inheritance rules apply to those assets when you die, regardless of your nationality or where you live. If you are inheriting assets located in Spain, Spanish inheritance tax applies to you as the beneficiary, even if you live outside Spain.
Non-EU residents inheriting Spanish assets are taxed under Spanish state rules rather than regional rules. This matters because the generous regional reductions that apply in places like Madrid and Andalusia are not available to non-EU beneficiaries - which can mean a significantly higher bill for UK nationals and Americans than for EU nationals in the same situation.
UK nationals are no longer EU citizens. The interaction between Spanish and English or Scottish inheritance law is more complex than it was before 2021, and UK nationals are no longer automatically entitled to the most favourable regional tax treatment. If you are a UK national with Spanish assets, get specialist advice - the rules have changed.
Brussels IV - Choosing Which Law Governs Your Estate
EU Regulation 650/2012, known as Brussels IV, gives EU residents the option to elect for the succession law of their nationality to govern their entire estate, rather than Spanish law. For an Irish or German national living in Spain, this can make a meaningful difference to what their heirs receive and how the estate is distributed.
This election must be stated explicitly in a valid will. It does not happen automatically. If you are an EU national living in Spain and you die without a will, Spanish succession law applies to your Spanish assets by default.
If you want to understand how Brussels IV affects your specific situation, an English-speaking lawyer in Spain who works on cross-border estates can give you a clear answer based on your nationality and where your assets are held.
Forced Heirship in Spain - The Legitima
One of the most significant differences between Spanish and Anglo-Saxon inheritance law is the concept of forced heirship, known in Spanish as la legitima. Under Spanish law, certain heirs are entitled to a fixed share of the estate regardless of what the will says.
The forced shares are as follows:
- Children: Two thirds of the estate must pass to children in total. One third is divided equally among all children; the other third can be distributed among children at the testator's discretion.
- Parents: If there are no children, parents are entitled to half the estate.
- Surviving spouse: The spouse has a usufruct (right of use and enjoyment) over a portion of the estate, depending on who else survives.
If you are used to the testamentary freedom of UK or US law - where you can generally leave your estate to whoever you choose - Spanish forced heirship rules are a significant constraint. A Spanish will cannot simply exclude children from the estate. Planning around this requires a specialist inheritance lawyer.
Spanish Inheritance Tax by Region (Impuesto de Sucesiones)
Spain levies inheritance tax on the beneficiary - the person inheriting pays, not the estate. The amount depends on three things: the value of what you inherit, your relationship to the deceased, and which autonomous community the assets are located in.
Regional variation is the defining feature of Spanish inheritance tax. The same estate can result in very different tax bills depending on location:
| Region | Spouse / Children Reduction | Effective Rate for Close Family |
|---|---|---|
| Madrid | 99% reduction | Near zero |
| Andalusia | 99% reduction | Near zero |
| Murcia | 99% reduction | Near zero |
| Galicia | 99% reduction (up to 1M euros) | Near zero for most estates |
| Valencia | 75% reduction | Low to moderate |
| Balearic Islands | Partial reductions | Moderate |
| Catalonia | Partial reductions | Moderate to significant |
| Basque Country | 400,000 euro exemption per heir | Low for most estates |
Inheritance tax must be paid within six months of the date of death. A six-month extension is available on request, but it must be applied for before the original deadline expires. Missing the deadline triggers surcharges and interest. For beneficiaries managing a Spanish estate from outside the country, six months can close faster than expected.
Why You Need a Spanish Will (Testamento)
A Spanish will (testamento) is one of the most cost-effective legal documents an expat with assets in Spain can have. A straightforward Spanish will costs between 200 and 500 euros. The cost of not having one - when your beneficiaries are navigating a Spanish estate using a foreign will - runs to months of delay, translation costs, apostille fees and legal recognition processes that can easily cost ten times more.
A Spanish will is also where EU nationals make their Brussels IV election. Without it, Spanish succession law applies to your Spanish assets by default. And it is where you can specify which assets go where, within the constraints of the forced heirship rules, rather than leaving distribution to the default rules.
A Spanish will sits alongside your UK or home country will - it does not replace it. It deals specifically with your Spanish assets. Expats with assets in more than one country need a will in each jurisdiction, each dealing with the assets located there.
Need help making a Spanish will?Find an English-speaking wills and inheritance lawyer who can draft your testamento and advise on your Brussels IV options.
Find a wills lawyer in Spain ->Dealing with a Spanish Inheritance
If you are managing the estate of someone who owned assets in Spain, the process typically involves the following steps, roughly in this order:
Obtain the death certificate and have it officially translated into Spanish.
Obtain a Certificate of Last Wills (Certificado de Ultimas Voluntades) from the Spanish Ministry of Justice - this confirms whether a Spanish will exists and who holds it.
If there is a Spanish will, obtain a notarised copy from the notary who holds it.
Prepare a deed of acceptance of inheritance (escritura de aceptacion de herencia) - this is the document that formally transfers the assets to beneficiaries.
Pay inheritance tax within the six-month deadline.
Transfer assets into the beneficiaries' names at the land registry and relevant financial institutions.
This process involves the Spanish notary, the regional tax office, the land registry and often multiple government departments. A specialist wills and inheritance lawyer manages all of this on your behalf - and the six-month deadline for inheritance tax means that delays at any stage have real financial consequences.
If you are buying property in Spain and want to factor inheritance planning into that decision from the start, it is worth reading alongside what a property lawyer does in Spain. You will also need a NIE number as a beneficiary of Spanish assets if you do not already have one.
Frequently Asked Questions
Dealing with a Spanish estate or planning ahead?Find an English-speaking wills and inheritance lawyer across Spain - from Barcelona and Madrid to the Costa del Sol, Alicante and Mallorca.
Find a wills and inheritance lawyer ->If you are moving from the UK and want the broader legal checklist, see the complete guide to moving to Spain from the UK.