When a foreigner passes away leaving assets in Spain, their heirs must go through a series of legal and tax procedures, which can be complex due to the interaction between Spanish law and international regulations.
If you find yourself in this situation, it is crucial to understand:
✅ Which law applies to a foreigner’s inheritance in Spain.
✅ The steps to process the inheritance and legally claim the assets.
✅ Which taxes heirs must pay, whether they are residents or not.
✅ How to avoid legal issues and expedite the succession process.
📌 At Lextax, we specialize in international inheritances and handle the entire process so you don’t have to worry about the bureaucracy.
Which Law Applies to a Foreigner’s Inheritance in Spain?
Since the enforcement of Regulation (EU) 650/2012, the inheritance of assets in Spain left by a foreigner is governed by the law of the country where the deceased had their habitual residence at the time of death.
📌 What happens if the deceased had foreign nationality but resided in Spain?
If a foreign citizen lived in Spain, their inheritance will be governed by Spanish law by default, unless they left a will specifying that the law of their country of origin should apply.
🔹 Practical example:
A British citizen residing in Spain who dies without a will will have their inheritance governed by Spanish law. However, if their will specifies that British law applies, then British regulations will determine how their assets are distributed.
📩 Unsure which law applies to the inheritance you are managing? At Lextax, we guide you through every step.
Steps to Process the Inheritance of a Foreigner in Spain
For heirs to legally claim the assets of the deceased, they must follow a structured legal process:
1. Obtain the Death Certificate
📌 Where to request it?
- Civil Registry of the place where the death occurred.
- Online at the Ministry of Justice’s electronic portal.
2. Request the Certificate of Last Wills
📌 Why is this important?
This document confirms whether the deceased left a will and which notary holds it.
3. Obtain the Will or Declaration of Heirs
✔️ If the deceased left a will, a notarized copy must be obtained from the notary’s office where it was signed.
✔️ If there is no will, heirs must apply for an intestate declaration before a notary.
4. Inventory of Assets and Debts
Before accepting an inheritance, it is essential to determine what assets and debts the deceased had.
✔️ Assets: Real estate, bank accounts, vehicles, investments.
❌ Debts: Mortgages, loans, outstanding taxes.
5. Payment of Inheritance Tax
Heirs must pay the Inheritance Tax (Impuesto de Sucesiones), which varies by autonomous community and depends on whether the heir is a resident or non-resident.
📌 Important: The deadline to pay this tax is six months from the date of death.
6. Signing the Deed of Acceptance of Inheritance
This legal act, carried out before a notary, is necessary to register the inherited assets under the heirs’ names.
7. Registering the Assets in the Relevant Registers
📌 It is essential to:
- Register real estate in the Land Registry.
- Update the ownership of bank accounts, vehicles, and investments.
💡 At Lextax, we handle the entire process so heirs don’t have to deal with bureaucracy.
Taxes Heirs Must Pay in Spain
The main tax affecting a foreigner’s inheritance in Spain is the Inheritance and Gift Tax (ISD), which varies based on:
✔️ The autonomous community where the inherited assets are located.
✔️ The degree of kinship between the heir and the deceased.
✔️ Whether the heir is a tax resident in Spain or not.
🔹 Practical example:
A son residing in Spain who inherits a property from his foreign father will pay lower taxes than a non-resident nephew inheriting the same property.
📌 How to reduce inheritance taxes in an international succession?
✅ Apply for regional tax deductions.
✅ Plan the inheritance in advance with a will and tax strategies.
✅ Consult the Spain-U.S. Double Taxation Treaty if the deceased was American.
📩 At Lextax, we help reduce inheritance taxes with proper planning.
Frequently Asked Questions About a Foreigner’s Inheritance in Spain
How long does the inheritance process take in Spain?
It depends on the complexity of the case:
- With a will and all documents in order: 3-6 months.
- Without a will or with disputes: More than 1 year.
Can I sell an inherited property before completing the legal process?
No. Before selling an inherited property, it is mandatory to pay the inheritance tax and register the asset under the heir’s name.
Can I refuse an inheritance in Spain?
Yes. If the debts exceed the value of the assets, heirs can renounce the inheritance before a notary to avoid financial liability.
What happens if there are multiple heirs who disagree?
If heirs cannot reach an agreement, they can:
✔️ Use legal mediation.
✔️ Initiate a court proceeding.
At Lextax, we provide legal mediation and representation for heirs.
📩 Do you have questions about a foreigner’s inheritance in Spain? Contact our experts to avoid legal issues.
Conclusion: How Can Lextax Help You Manage an International Inheritance?
Managing the inheritance of a foreigner in Spain can be complex, but with proper legal assistance, you can speed up the process and optimize taxation.
📌 How does Lextax help you?
✔️ Legal advice on the applicable inheritance law.
✔️ Management of wills and heir declarations.
✔️ Tax optimization and inheritance tax filing.
✔️ Notarial and property registration processing.
✔️ Representation for non-resident heirs in Spain.
✔️ Mediation and dispute resolution between heirs.
📞 Need help with an international inheritance? Contact us for specialized assistance and ensure a quick and hassle-free process.
🔗 More information on international taxation:
✅ Spain-U.S. Double Taxation Treaty
✅ Spain-UK Double Taxation Treaty
💡 At Lextax, your inheritance in Spain is in expert hands. ✅