Inheritance in Spain for foreigners: a practical guide

Which law governs the succession

When an inheritance has an international element (a foreign deceased, residence outside Spain, or assets in several countries), Spanish notaries and courts apply EU Regulation 650/2012 to deaths on or after 17 August 2015. They apply it whatever the deceased's nationality: also to British, American or Swiss nationals, even though their countries are not bound by it. What it does not change is how those countries' own courts decide: the United Kingdom, Ireland and Denmark do not apply the Regulation and follow their own rules, as does any country outside the EU. In practice:

• General rule: the law of the country where the deceased was habitually resident at death governs, not the law of where the assets are. A German who lived in Alicante inherits under Spanish law; a French national who lived in Lyon, under French law, even with a flat in Valencia.
• Choice of law: a will can choose the law of the testator's nationality, and only that law. A Briton living in Spain can choose the law of their own country (for example English law, which has no forced heirship); a Spaniard living in France can choose Spanish law.
• One law for the whole estate, wherever the assets are. One nuance: if the governing law is that of a non-EU country such as the UK or the US, its own rules may refer back to Spanish law for real estate located in Spain (known as renvoi). We check this case by case.
• Wills made before August 2015: if they were drawn up under the law of the testator's nationality, they may count as a choice of that law even without saying so expressly.
• When Spanish law applies, the deceased's regional civil status (vecindad civil) decides whether the Civil Code or a regional law (Catalan, Aragonese, Navarrese, Balearic, Galician or Basque) governs. And if the deceased was Spanish, lived in Spain and everything is here, there is no international element: the Regulation does not come into play.
• The Regulation decides who inherits and how much, not tax: inheritance tax follows Spanish tax law and, where relevant, the treaty with the other country (see the next section).

Where taxes are paid

Practical rule: Spain taxes assets located in Spain when the heir is a non-resident, and the whole inheritance when the heir resides in Spain (with credits for tax paid abroad, per treaties). Non-residents can apply the rules of the relevant region, which in many regions (the Valencia region, for example) include very high reliefs for close relatives. Your home country may add its own rules: we coordinate both sides.

Documents: the bureaucratic toll

• NIE (Spanish tax ID) for each heir: we obtain it by power of attorney
• Foreign certificates (death, birth, marriage): Hague apostille or legalisation + sworn translation
• Foreign wills: probate, European Certificate of Succession or the country's equivalent
• Power of attorney granted in the heir's country to sign in Spain on their behalf
• Bank certificates and proof of ownership of Spanish assets

What if I want to leave it prepared?

The best international inheritance is the one planned in advance: a Spanish will with a choice of law, ownership structures reviewed, preventive powers of attorney and a dossier with the information your family will need. For foreign residents in Spain it is by far the most profitable investment in their estate.