Steps to Inherit Real Estate in Spain as a Foreigner

Inheriting property in Spain can involve many steps, costs, and legal rules. Each part of the process has its own requirements, and these can change depending on where the property is located or who is inheriting it. This includes the legal steps you must follow, how taxes are applied, and how foreign heirs are affected. There are also common mistakes that cause delays or penalties, as well as how new laws might affect future inheritances. However, you can plan better and avoid problems along the way.

Legal Steps to Inherit a Home in Spain

To inherit property in Spain, you must follow several legal and administrative steps.

Register the death by bringing the medical death certificate and the deceased’s ID to the Civil Registry. You should ask for several certified copies of the death certificate.
Request the Certificate of Last Wills from the Central Wills Registry using the death certificate. If a will exists, get a copy from the notary who holds it. If not, a notary must declare who the legal heirs are.
Make an inventory of all assets in Spain, including property, bank accounts, vehicles, and insurance policies. Each item must be backed by specific documents, and you may need formal valuations.
File inheritance tax and capital gains tax (plusvalía) within six months at the tax office of the deceased’s last residence. Extensions can be requested, but penalties apply for delays. Keep in mind that inheritance tax in Spain for non residents may be calculated differently, and local rules can vary by region.
Sign the notarial deed of acceptance before a Spanish notary. All heirs must be present or represented with power of attorney.
Register the inheritance in the Land Registry by submitting all notarial, tax, and identification documents. This step officially transfers property to the heirs, and paying the required inheritance tax Spain is part of completing this stage.

The process of inheriting a real estate in Spain usually takes four to eight months, but this can change depending on the situation. Getting the will from the Central Wills Registry often takes two to six weeks, especially because of postal delays or busy offices. Tax offices may take one to three months to process returns, and any mistake can slow things down. Notaries and property registries often have long waiting lists, and missing documents cause even more delays. So it’s smart to gather all required papers early and stay in touch with legal professionals during the process. Keeping up with new inheritance laws in Spain can also help you avoid common errors and missed deadlines.

Each step of the inheritance process in Spain requires its own set of documents.

For death registration, you need the medical death certificate and the deceased’s ID.
To search for the will, bring the death certificate, Last Wills certificate, and documents that prove your relationship to the deceased.
When listing the assets, use property deeds, IBI receipts, bank certificates, car papers, and insurance policies.
For taxes, prepare the notarial draft, heirs' IDs, and asset values.
At the notary step, provide everything from earlier steps, plus proof of tax payments.
The final land registration step also needs the notarized deed and all tax certificates.

Anyone involved in Spain inheritance tax matters should consider professional help, especially when properties or heirs are located in different countries.

Ways to Reduce Inheritance Tax in Spain

Inheritance tax in Spain is progressive, and how much you pay depends on the value of what you inherit and how closely you were related to the deceased. In 2025, the national rates range from about 7.65% to 34%, but most people get reductions based on kinship. For example, children under 21 can get an allowance of up to €47,859, and spouses or adult children can get €15,957. More distant relatives receive much less or nothing. These exemptions lower the taxable base, so closer relatives often pay much less than others.

Where you live in Spain also matters because each autonomous community has its own rules. In Andalusia, close family members like children or spouses can inherit up to €1,000,000 tax-free. Anything above that is taxed at a very low rate, around 1%. Catalonia has higher taxes and fewer exemptions. There, rates can reach 32%, but they give discounts based on how close you were to the deceased and how much you inherit. For example, children under 21 get both tax breaks and reductions based on age and residence conditions. For inheritance in Spain, it is important to check the specific rules in their region to avoid surprises.

There are also legal ways to lower your tax burden before someone passes away. Giving gifts while alive is one method, especially in regions like Andalusia or Madrid, where gift taxes are low for close family. Writing a will is also important because it lets you choose which country's laws apply, which may protect more of your estate. In some places, local wills can give you extra tax benefits. Other strategies, like life insurance or trusts can also help, but they are more complex and need expert help. If you're a foreign heir, knowing how Spain inheritance tax non residents applies to your case is critical, since your tax burden can differ based on residency status.

Filing inheritance tax on time is very important in Spain. The deadline is six months from the date of death, but you can ask for a six-month extension if you apply before the fifth month. Missing the deadline leads to interest charges and monthly penalties starting at 1% per month. These costs grow quickly and reduce what heirs receive. So it's a good idea to work with a notary and tax advisor early to avoid losing part of the estate to penalties and extra fees. If you’re wondering how much inheritance tax do you pay in Spain, the answer will depend on your region, your relationship to the deceased, and how well you plan ahead.

In addition to taxes, to learn more about the life in Spain, check out our blog “Cost of Living in Spain 2025”.

Common Mistakes When Inheriting Spanish Property

In Spain, forced heirship laws control how you can pass on your estate. National rules say two-thirds of the estate must go to children or direct descendants. One-third is split equally among all children, and another third can go to one or more of them as the parent chooses. The last third is freely available to anyone. Some regions apply different rules. In the Basque Country, only one-third must be reserved for descendants, and you can choose which grandchildren get it if a child has passed away. In Valencia, the national two-thirds rule still applies, but the tax rules are better for close family, and they recognize civil partners more fully than other areas. Inheritance tax in Spain for residents can also vary widely depending on the region.

Regional laws change how inheritances are handled, so it’s easy to make mistakes without knowing the local rules. One common problem is missing key documents like the Spanish death certificate or official translations. Taxes must be filed within six months, and late payments bring penalties and interest. Inheritance tax in Spain for expats can be especially confusing, since the applicable rules depend on residency, location of assets, and tax treaties. Heirs often disagree about asset division or miss notary meetings because they don’t coordinate well. Another issue is relying only on foreign wills. A UK or U.S. will might not protect your heirs under Spanish law unless it clearly says you want your home country’s rules to apply. That’s why a Spanish will with the Brussels IV clause is important.

Even with a valid will, problems can still come up. Someone might contest the will because they were left out by mistake or because the person signing it was not mentally capable. Others may claim fraud or say the will wasn’t signed correctly. These challenges must go through the courts in the area where the person lived, and time limits apply. Spain inheritance tax foreign assets can create added legal complexity, especially if heirs are unfamiliar with international requirements.

Using both a Spanish will and a home-country will, each covering only the assets in that country, is the safest option. This gives you more control, helps your heirs avoid legal trouble, and protects everyone involved from unnecessary delays or conflict. Keeping up with changes to inheritance tax Spain 2025 will also be important, as updates to deductions and filing rules may impact both residents and non-residents.

What Future Changes are Expected in Spanish Inheritance Law

Spain’s inheritance system is likely to keep shifting due to political and economic pressures. Some regions want to stay competitive by offering generous tax reliefs, which is why places like Madrid and the Canary Islands have near-zero tax for close relatives. This helps attract new residents and boosts real estate markets.

Inheriting a house in Spain could become more financially favorable or more restricted depending on where the property is located and how laws evolve. At the same time, the national government is under pressure to control housing prices and stop tax avoidance. That’s why there are proposals to raise taxes on property transfers by non-EU buyers. Inheritance tax in Spain for property could rise for international owners or distant heirs, especially in high-demand areas.

Changes in EU law are also starting to reshape how cross-border inheritances work. European citizens can now choose the law of their home country in their will, which challenges Spain’s forced heirship rules. The European Certificate of Succession (ECS) also helps heirs transfer property across borders more easily, because it lets them use one legal document for multiple countries. Spain's inheritance tax rules 2025 may reflect this cross-border pressure by offering simpler processes or updating local procedures for foreign heirs.

Because laws are changing, it’s smart to build a long-term estate plan that can adapt. One way is to move your legal residence, or your assets, to a low-tax region like Valencia or Madrid. You can also write a Spanish will that clearly chooses your home country’s laws. Inheritance tax threshold Spain is different across regions, so planning where assets are held can directly impact how much is owed. Giving gifts during your lifetime is another strategy, especially for close relatives in regions with gift tax relief.

Spain inheritance tax rates vary by region, relationship, and asset value, which makes local planning especially important. For non-residents, holding Spanish property through EU-based persons might lower your tax bill. Inheriting a house in Spain will likely involve both national and regional laws, so it's a good idea to review your estate plan every year, so you stay ahead of tax reforms and avoid future problems for your heirs.