This is an overview, not legal advice. Inheritance law and inheritance tax are individual and the rules change. We can refer you to an English-speaking lawyer who works with both your home country’s law and Spanish law. That is the only advice you should base a decision on.
Why this is different in Spain
Two things differ from most northern European countries and surprise almost everyone:
- Inheritance tax is paid by the heir, not by the estate, and it is calculated per heir. Andalusia has extensive reliefs for close relatives, but the tax must still be declared here.
- The tax often has to be paid before you can dispose of the property. It may therefore need to be paid before you can sell what you inherited in order to finance it. That is why the deadline matters.
Which country’s law applies
Within the EU the inheritance is normally governed by the law of the country where the deceased was habitually resident. But you may choose the law of your country of nationality in a will — and that choice must be explicit and made in advance. For a family with a home in Spain, this is often what decides how simple or how difficult everything becomes.
Note the distinction: which law governs the distribution of the estate and where the tax is paid are two separate questions. The Spanish property is taxed in Spain even if your home country’s inheritance law applies.
What makes the difference, in advance
- A Spanish will covering only the assets here, registered in the Spanish register of wills. It is cheap to draw up and saves months later.
- An NIE for the heirs. Nobody can formally inherit without their own NIE. It takes time to get — see the guide.
- Paperwork in order. Title, unpaid fees, unregistered extensions. Whatever is not in order becomes the heirs’ problem, at a time when nobody has the energy.
- Knowing what the property is worth. The declaration is based on a value, and a wrong value can bring a reassessment.
If you have already inherited
Do three things, in this order: contact a local English-speaking lawyer immediately because of the deadline; apply for an NIE for every heir; and get a current valuation of the property. If the property is to be sold, we help with that — how a sale works — but the legal side always comes first.
Get in touch and we will tell you who to talk to. It costs nothing and we will not sell you anything in that conversation.