Spanish Inheritance Planning for Expats: Wills, Heirs, and Tax Strategies

Owning property or financial assets in Spain subjects your estate to local inheritance rules. This guide covers cross-border wills, forced heirship, and regional tax allowances so you can protect family members and minimise liabilities.

Table of contents

• Why expats need a Spanish will
• Understanding forced heirship
• Coordinating international estates
• Inheritance tax in Spain
• Planning strategies for families
• Practical steps to draft your will
• FAQs
• Related guides

Why expats need a Spanish will

• Simplifies probate by avoiding translation and legalisation of foreign wills.
• Ensures Spanish assets follow your wishes and local procedures.
• Facilitates faster property transfers and bank account access for heirs.

Draft a Spanish open will (testamento abierto) before a notary; it can reference your home-country will while specifying governing law.

Understanding forced heirship

Spanish civil law reserves portions of your estate for specific heirs:

• Descendants (children or grandchildren) typically receive two-thirds.
• If no descendants, ascendants (parents) inherit a portion.
• The remainder is freely disposable.

EU Regulation 650/2012 allows expats to elect the law of their nationality in the will, reducing forced heirship constraints. State this election explicitly to avoid challenges.

Coordinating international estates

• Keep your Spanish notary informed about foreign wills to prevent conflicts.
• Review how UK, US, or other jurisdictions treat Spanish property and double taxation.
• Update beneficiary designations on life insurance and pensions to align with your testamentary plan.
• Ensure your executors can obtain NIEs to manage Spanish assets during probate.

Inheritance tax in Spain

Inheritance tax (Impuesto sobre Sucesiones y Donaciones) varies by autonomous community:

• Andalusia, Madrid, and Valencia offer generous reductions for close relatives.
• Catalonia and Asturias apply higher effective rates but allow deductions based on age and disability.
• Non-resident heirs can benefit from the same regional allowances as residents since 2015.

Calculate potential liabilities early and set aside funds or insurance to cover the tax within the six-month payment window.

Planning strategies for families

• Gift assets gradually using lifetime donations (donaciones) to capture lower tax brackets.
• Hold real estate through a Spanish company to manage succession shares efficiently.
• Use life insurance policies where beneficiaries are direct heirs to finance tax bills.
• Keep property valuations and mortgage statements updated to support deductions.

Practical steps to draft your will

1. Gather a full inventory of Spanish and foreign assets.
2. Decide which law should govern your estate and include it in the will.
3. Choose executors and guardians (if applicable) who can act in Spain.
4. Schedule a notary appointment; bring identification, NIE, and draft instructions.
5. Sign the will, which is then registered with the Central Wills Registry.
6. Inform heirs where copies are stored and review the document after major life changes.

FAQs

Do I need separate wills for Spain and my home country? Often yes. Coordinated wills prevent conflicts and speed up probate on both sides.

How long do heirs have to pay inheritance tax? Six months from the date of death, with a possible six-month extension if requested within the first five months.

Can I disinherit a child? Only for specific legal causes defined in the Civil Code and proven in court. Electing foreign law may provide more flexibility.

Related guides

• Buying Property in Spain
• Mortgages for Expats in Spain
• Power of Attorney in Spain
• Spanish Tax Residency for Expats
• Healthcare in Spain for Expats

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