Owning a property in Spain is exciting, but have you thought about what happens to it when you’re gone? Spain has its own inheritance tax system (ISD), strict six-month deadlines, and a maze of paperwork that can trip up even the most organised families.
The good news? A simple Spanish will can save your heirs months of stress, spare them hefty legal bills, and even unlock generous regional tax allowances, like Andalucía’s eye-popping €1 million allowance with a 99% discount for direct heirs.
We asked Alex Radford of My Lawyer in Spain to explain exactly how inheritance works in Spain, why a €200–300 Spanish will is worth its weight in gold, and the steps your heirs will need to follow.
🎥 Watch the video below to hear Alex’s expert advice and learn how to keep Spanish inheritance stress-free.
“When buying a Spanish property, we’d always recommend that clients put in place a Spanish will,” says Alex. Why? Because without it, your heirs will face a double round of paperwork:
Step 1: Probate in your home country.
Step 2: Bringing translated and apostilled documents to Spain to start the inheritance process.
If you have a Spanish will, the process starts immediately. No six-to-nine-month wait for UK probate (or similar in other countries). No unnecessary delays or extra costs.
Alex adds: “Not having a will can basically cause considerable delays… whereas if you’ve got a Spanish will, you can start the process straight away.”
A Spanish will only covers your Spanish assets, like your property or bank accounts in Spain. Your home country will covers everything else. The two wills can (and should) peacefully co-exist.
Key points:
Alex adds: “Lots of Northern European jurisdictions don’t have a central wills registry. For once, Spanish bureaucracy works!”
Beyond speed, there’s a very practical reason for having a Spanish will: it can make inheritance tax mitigation easier.
In Spain, inheritance tax (ISD) is largely decided by the region where your property is located. Some regions are extremely generous to direct heirs:
“For example, in Andalucía right now, mum and dad die in a car crash and the three children inherit. Each child will have an inheritance allowance of a million euros, and then a 99% discount on any inheritance tax due.”
Yes, you read that right: a million-euro allowance plus a 99% discount.
But here’s the catch: the process has to start within six months of death. If your heirs are stuck waiting on foreign probate, they could miss the deadline—or end up applying for an extension while paying translators and notaries to wrangle overseas paperwork.
If your only will is in your home country, it can still be enforced in Spain, but expect delays and costs:
“Relying on a foreign will only will add an extra layer of costs,” warns Alex.
Considering a Spanish will costs as little as €200–300, it’s one of the most cost-effective pieces of paperwork you’ll ever sign.
Alex makes it sound refreshingly simple: “Putting in place a Spanish will is an easy process… We prepare them in English and Spanish, you approve the draft, and then sign either in front of a notary in Spain, a notary in the UK, or a Spanish consulate.”
Once signed and registered, your heirs will thank you for sparing them months of cross-border admin.
Once someone passes away, the clock starts ticking. Spain requires that inheritance tax (Impuesto de Sucesiones y Donaciones, or ISD) is declared and paid within six months of the date of death. If the heirs aren’t ready, you can request a six-month extension—but you must apply before the original deadline passes.
Here’s how the process works:
1. Confirm the existence of a will
The Spanish central wills registry will issue a certificate confirming if the deceased had a Spanish will and before which notary it was signed. If no Spanish will exists, you’ll need probate documents from the home country, officially translated and apostilled.
2. Collect the paperwork
3. File the inheritance tax return (Modelo 650)
Modelo 650 is the key inheritance tax form. Submit it to the Agencia Tributaria in the region where the property is located. If multiple heirs exist, each submits their own declaration.
4. Pay the tax (if applicable)
Payments can often be made online or via a Spanish bank. Some regions (like Andalucía) have very generous discounts for direct heirs—but you must still file, even if the tax due is zero.
5. Transfer the property to the heirs
Once tax is settled, the notary updates the property deed and registers the new owner(s) with the Land Registry. Only then can the heirs sell or mortgage the property.
Top tip from Alex: “Even if no tax is due, you must complete the formal inheritance process within the deadlines—or risk penalties and delays later.”
Once the heirs inherit the property, they may decide to sell. Here’s where capital gains tax (CGT) comes into play.
Step 1: The property’s “acquisition value” resets
When you inherit a property, the acquisition value for CGT purposes becomes the value declared in the inheritance process (usually the market value at the date of death).
Step 2: Selling soon after inheriting often means minimal CGT
If heirs sell the property for roughly the same value it was declared at for inheritance tax, the capital gain is tiny—or even zero.
Step 3: Wait too long, and the gain grows
If the property appreciates after inheritance, CGT applies on the profit.
Spanish residents pay CGT at 19–28% depending on the gain.
Non-residents generally pay 19% if EU/EEA or 24% otherwise, with a 3% withholding applied at sale.
Step 4: Municipal Plusvalía tax still applies
Heirs (or the buyer, depending on the deal) may also face Plusvalía, the local capital gains tax on land value increase, even if CGT is minimal.
In short: inheritance itself doesn’t trigger capital gains tax, but selling later might. A correct inheritance declaration now can reduce your future CGT liability and make selling smoother. Read our complete guide to capital gains tax in Spain for more information.
If you own property in Spain, a Spanish will is the simplest way to protect your heirs from costly delays and help them take advantage of generous regional inheritance tax allowances.
Watch Alex’s full video above to hear exactly how the process works and why, for once, Spanish bureaucracy might actually be on your side.
Next up:
Discover how much tax you pay in Spain with our comprehensive guide to the Spanish tax system. Learn about income tax, property taxes, & residency implications
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