How Does Inheritance Work in Spain?

When someone dies owning assets in Spain, those assets must pass through the Spanish inheritance process regardless of nationality. Heirs must file a Spanish inheritance tax declaration and complete a formal transfer of assets within 6 months of death.

Failure to meet the 6-month deadline results in penalties and interest — even if no tax is actually due. Many beneficiaries are unaware of this deadline, making it one of the most common and costly mistakes in Spanish inheritance administration.

Spanish Forced Heirship (La Legítima)

Spanish inheritance law contains mandatory legítima provisions reserving estate portions for certain heirs regardless of the deceased's wishes:

  • Children (and in their absence, grandchildren) are entitled to two-thirds of the estate.
  • One-third of the estate (the tercio de libre disposición) can be freely disposed of.
  • The surviving spouse has a usufruct right over one-third of the estate.

These rules can significantly constrain an expat's wishes — e.g., leaving everything to a spouse while excluding children from a previous relationship may not be fully possible under Spanish law. This is why choosing the applicable law under EU Regulation 650/2012 is so important.

EU Regulation 650/2012: Choosing Your Applicable Law

EU Regulation 650/2012 allows EU residents to elect that the law of their nationality governs their entire estate. This election is made in the will itself. It came into force in 2015.

For example, English law has no forced heirship provisions — it allows complete testamentary freedom. A British national in Mijas who elects English law in their Spanish will can leave their Spanish property exactly as they wish. Your lawyer can advise on whether this election is appropriate for your nationality.

Spanish Inheritance Tax in Andalucía

Inheritance tax in Spain is a regional tax. Andalucía introduced a 99% reduction for direct family heirs (spouses, children, grandchildren, parents) in 2019 — effectively making most family inheritances tax-free in Andalucía.

However, this near-zero rate applies primarily to Andalucía residents. Non-resident heirs may be subject to different rates. The rules are complex and regularly updated — always take specialist advice on the inheritance tax position.

Inheriting Property in Spain: The Process

For beneficiaries inheriting property on the Costa del Sol, the process typically involves:

  1. Obtaining death certificates (apostilled if foreign) and checking the Spanish Central Registry of Last Wills.
  2. Opening the will at a notary, or establishing heirs by means of a declaration of heirs if there is no will.
  3. Preparing the inventory of Spanish assets and obtaining valuations.
  4. Signing the deed of acceptance of inheritance before a notary.
  5. Filing the inheritance tax declaration within 6 months (with possible extension).
  6. Registering the property in the heirs' names at the Land Registry.

Frequently Asked Questions

Yes. The inheritance process involves complex interactions between the notary, Land Registry, and Tax Agency. A Spanish inheritance lawyer manages the entire process, ensures deadlines are met, and minimises lawful tax liability.
Without a Spanish will, heirs must establish their entitlement by means of a notarial declaration of heirs. This is slower and more expensive — the primary reason we strongly encourage all expat property owners to make a Spanish will.
Yes. If the estate has debts exceeding assets, heirs can formally renounce the inheritance before a notary. Simply ignoring correspondence is not sufficient — it can leave you liable for the deceased's Spanish debts.