ELITE WORLD ESTATES BLOG

Written by Anita Orłowska on 27.01.2026 - 7m reading

Buying property in Spain is for many foreign buyers a long-term investment, a lifestyle decision, or a plan for the future. Much less attention is usually paid to what will happen to that property in the event of the owner’s death. Meanwhile, inheritance of property in Spain follows rules that differ significantly from those in many other countries and requires careful preparation.

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Lack of awareness can result in lengthy procedures, unexpected tax liabilities and serious difficulties for heirs. For this reason, both current property owners in Spain and those planning to purchase should understand the basic principles of Spanish succession law, inheritance tax and the most common risks involved.

Inheritance of real estate in Spain does not take place automatically upon death. Heirs must complete a formal legal procedure, which includes executing a notarial deed of acceptance of inheritance, settling inheritance tax and registering the change of ownership in the Land Registry. Until these steps are completed, heirs cannot freely sell, transfer or mortgage the property.

A crucial feature of Spanish succession law is the concept of forced heirship. Under Spanish law, close family members – primarily children – are legally entitled to a protected portion of the estate. This limits the freedom to distribute assets entirely according to personal wishes if Spanish law applies to the succession.

For foreign owners unfamiliar with this system, forced heirship is often the first major surprise. It can significantly affect how property is ultimately divided, even where a will exists. In practice, this means that a thorough legal verification of the property is essential, including a review of the Land Registry records, which we explain in more detail in our article Nota Simple – how to read it and what to look out for.

Under EU Regulation No. 650/2012 (Brussels IV), a property owner may choose the law of their nationality to govern their succession, provided this choice is clearly stated in a valid will. For many foreign owners, this is a key planning tool that allows them to avoid the automatic application of Spanish succession rules, including forced heirship.

If no such choice of law is made, Spanish law may apply by default, depending on the deceased’s habitual residence at the time of death. This can lead to outcomes very different from what heirs might expect under their home country’s legal system.

In the absence of a will, Spanish law imposes a strict order of succession: children and descendants first, followed by parents, the spouse, extended family and, in the absence of any eligible heirs, the State. This makes the absence of a properly drafted will one of the most common sources of inheritance disputes and delays.

Inheritance tax in Spain is often one of the most complex aspects for foreign heirs. The tax burden depends on several factors, including the value of the property, the relationship between the deceased and the heir, tax residency and the heir’s tax group classification.

Close relatives, such as children, spouses and parents, generally benefit from more favourable allowances. By contrast, distant relatives or unrelated heirs – including unmarried partners – may face significantly higher tax liabilities. This distinction is particularly relevant for international families and non-traditional family structures.

In addition, Spain’s autonomous regions have broad powers to regulate inheritance tax. As a result, tax rates, allowances and exemptions can vary substantially depending on the property’s location. These regional differences make inheritance planning highly location-specific and underline the importance of individual analysis rather than general assumptions.

In practice, most inheritance problems arise not from the law itself, but from insufficient preparation. The most common issues include:

• lack of a valid or up-to-date will

• automatic application of Spanish succession law

• forced heirship overriding personal intentions

• absence of NIE numbers for heirs

• unresolved legal or financial issues linked to the property

• unpaid community fees or local taxes

• delays in initiating inheritance procedures

Any of these factors can significantly prolong the inheritance process and increase overall costs for heirs.

The purchase stage is the most effective moment to think about future inheritance. Drafting a clear will, choosing the applicable law where appropriate and keeping property documentation in order can prevent serious complications later on.

Long-term planning also involves periodically reviewing the legal and tax situation, especially given that Spanish tax regulations and regional allowances may change over time. A well-planned inheritance strategy ensures that Spanish property remains a valuable asset for future generations rather than a legal or financial burden.

For foreign buyers, professional guidance at the acquisition stage helps ensure that inheritance considerations are integrated into the overall ownership structure from the very beginning.

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Let us narrow down the search among the properties available through us, by contacting us and finding the best options for you. We are here to help you! Please enter your contact details below and we will contact you as soon as possible.

Let us narrow down the search among the properties available through us, by contacting us and finding the best options for you. We are here to help you!
Please enter your contact details below and we will contact you as soon as possible.