Inheritance Law in Spain: What UK Property Owners Must Know

Why This Matters More Than You Think

If you own property in Spain and something happens to you, two legal systems collide: Spanish succession law and UK inheritance rules. Without proper planning, your family could face forced heirship rules, double taxation, and a bureaucratic nightmare that takes years to resolve.

This isn't a theoretical risk. We've seen UK families locked out of Spanish properties for 18+ months because the deceased hadn't made a Spanish will, and cases where children from previous marriages claimed forced heirship rights that the surviving spouse didn't know existed.

Spanish vs UK Inheritance Law: The Key Differences

Rule	England & Wales	Spain (Andalusia)
Freedom to choose heirs	Complete — you can leave everything to anyone	Limited — forced heirship reserves 2/3 for children
Surviving spouse rights	Depends on will / intestacy rules	Usufruct (right to use) of 1/3 of estate
Tax on inheritance	40% above £325,000 threshold	Progressive 7.65% – 36.5% (with Andalusia reductions)
Probate timeline	Typically 6-12 months	Can take 12-24 months for non-resident estates

Forced Heirship: The Rule That Surprises UK Buyers

Under traditional Spanish law, you cannot freely dispose of your entire estate. The "legítima" reserves portions for certain heirs:

• Children are entitled to 2/3 of the estate (split equally). Of this, 1/3 is the "strict legítima" (equal shares) and 1/3 is the "mejora" (can be distributed unequally among children)
• Surviving spouse gets usufruct (right to use and benefit from, but not own) of 1/3 of the estate
• Only 1/3 (the "libre disposición") can be freely left to anyone

The EU Succession Regulation (Brussels IV) provides an escape. Since 2015, EU regulation 650/2012 allows you to choose the law of your nationality to govern your estate. As a UK national, you can choose English law — which gives you complete freedom to leave your Spanish property to whoever you wish.

This choice MUST be explicitly stated in your will. Without it, Spanish courts may apply Spanish forced heirship rules to your Spanish assets.

Do You Need a Spanish Will?

Yes. While a UK will can technically cover Spanish assets, having a separate Spanish will for your Spanish property is strongly recommended because:

• It's written in Spanish and recognised immediately by Spanish courts and notaries
• It avoids the need to translate, apostille, and validate your UK will in Spain
• It speeds up the inheritance process from potentially years to months
• It can include the Brussels IV election to apply English law
• It costs approximately €150-€300 to make

Critical: Your Spanish will should state that it covers ONLY your Spanish assets. Your UK will should state it covers ONLY your UK/worldwide assets EXCLUDING Spain. This prevents one will accidentally revoking the other.

Inheritance Tax in Spain (Andalusia)

Spanish inheritance tax (Impuesto sobre Sucesiones) is complex because it varies by autonomous community. In Andalusia (which covers the Costa del Sol), recent reforms have made it much more favourable:

• Spouse and children: 99% reduction on inheritance tax for estates up to €1 million per heir. Effectively, most family inheritances in Andalusia are nearly tax-free
• Above €1 million per heir: standard progressive rates apply (7.65% – 36.5%)
• Non-residents inheriting Spanish property: must apply the rules of the autonomous community where the property is located (Andalusia's favourable rates apply)

UK inheritance tax also applies. As a UK domiciled person, your worldwide estate (including Spanish property) is subject to UK IHT at 40% above the nil-rate band (£325,000, or £500,000 if passing a home to direct descendants). The UK-Spain double taxation convention on estates prevents double taxation, but the interaction is complex.

Practical Steps to Protect Your Family

1. Make a Spanish will — use a Spanish lawyer (abogado) or notary. Include the Brussels IV election for English law. Cost: €150-€300
2. Update your UK will — exclude Spanish assets (to avoid conflict with your Spanish will). Confirm it says "this will covers all assets EXCEPT those situated in Spain"
3. Appoint a Spanish executor — or at minimum ensure your UK executor has access to a Spanish lawyer who can act on their behalf
4. Keep documents accessible — your heirs will need: Spanish will location, property escritura (deed), NIE numbers, Spanish bank details, community fee status, IBI payment receipts
5. Consider life insurance — a Spanish life insurance policy can provide immediate liquidity for your heirs to cover inheritance tax and property costs while the estate is being processed
6. Review ownership structure — joint ownership (pro indiviso) with your spouse means only half the property goes through succession. Or consider usufruct arrangements

What Happens If You Die Without a Spanish Will?

Your heirs face:

• Locating and translating your UK will — it must be apostilled and officially translated into Spanish (sworn translation). Cost: €500-€1,000+
• Court validation — a Spanish court must recognise the UK will. This can take 6-12 months
• Risk of forced heirship — without a Brussels IV election, Spanish courts may apply Spanish rules
• Frozen bank accounts — Spanish banks freeze the deceased's accounts until succession is resolved
• Ongoing costs — someone must pay community fees, IBI, and utilities during the process, or face penalties
• 6-month tax deadline — Spanish inheritance tax must be filed within 6 months of death (extensions possible but not automatic)

Ownership Structures for Tax Planning

How you hold the property affects both inheritance and tax. Common structures:

• Joint ownership with spouse — simplest option. On death, only the deceased's share goes through succession. No stamp duty or transfer tax on the survivor's share
• Usufruct arrangement — one spouse owns the property, the other has lifetime right to use it. Can reduce inheritance tax exposure
• Spanish company (SL) — you inherit company shares rather than property directly. Can simplify succession but adds corporation tax and annual filing obligations. Generally only worthwhile for portfolios over €500,000

Do not set up complex structures without professional advice from a lawyer who understands both UK and Spanish tax systems. The wrong structure can create more problems than it solves.

Next Steps

1. If you already own Spanish property, make a Spanish will as soon as possible
2. If you're buying, factor the will into your purchase process — most conveyancing lawyers offer this service
3. Read the full costs and taxes guide for ongoing obligations
4. Join the MUNDO Buyer Club — our verified agents can recommend English-speaking lawyers who specialise in cross-border estate planning