International Inheritance in Spain: A Guide for Foreign Property Owners
Many foreign owners of Costa Blanca property haven’t planned what will happen to it after they pass away. International inheritance has legal and tax quirks that are far better resolved during your lifetime than after.
Which law applies to your estate
Under the EU Succession Regulation, the default applicable law is that of the deceased’s habitual residence at the time of death — unless their will expressly chooses the law of their nationality instead. That choice is crucial and needs to be in writing.
Why it pays to make a Spanish will
Even if a will made in your home country is recognised in Spain, having a Spanish will specifically for your Spanish assets makes life far easier for your heirs: it avoids translations, apostilles and recognition procedures that can drag the process out for months or even years.
The usual steps in an international succession
- Obtain the death certificate and the certificate of last wills.
- Locate and accept the will (Spanish or foreign).
- Divide the estate among heirs, with the assets valued.
- Pay Inheritance Tax, which in the Valencian Community carries specific reductions depending on the degree of kinship.
- Register the new owners at the Land Registry.
Tax matters to keep in mind
Inheritance Tax in Spain varies significantly by region, and the Valencian Community applies meaningful reductions for spouses, and direct ascendants and descendants. It’s also essential to check double-taxation treaties between Spain and the heirs’ country of residence to avoid being taxed twice.
Don’t put this off
Good succession planning during your lifetime — a Spanish will, tax forecasting and clarity on which law applies — is the best gift you can leave your heirs. It simplifies the process, cuts costs and avoids family conflict at an already difficult time.
Need personalised guidance for your situation?
For more than 60 years, SAGA has guided investors and private buyers through property decisions on the Costa Blanca. Get in touch with our team and we’ll help you work through the tax, legal or financial questions before you take the next step.
