Inherit Property in Spain as a Foreigner – Complete Legal & Tax Guide
Inheriting a property in Spain as a foreigner may seem like a complex process, but with the right information, it is easier than it appears.
This guide explains the legal steps, taxes, documentation, and differences between residents and non-residents so you can plan or manage an inheritance in the Costa del Sol with complete peace of mind.
Can a foreigner inherit property in Spain?
Yes. Foreigners can inherit property in Spain under the same conditions as Spanish citizens.
Spanish law recognizes the right to inherit property in Spain as a foreigner without requiring residence in the country, as long as the corresponding legal and tax obligations are met.
The key point is determining which law applies: that of the deceased’s nationality or Spanish law. Since the entry into force of EU Regulation 650/2012, European citizens may state in their will that their inheritance should be governed by the law of their habitual residence or their nationality.
This greatly simplifies the process for foreign residents in the Costa del Sol.
What taxes apply when you inherit property in Spain as a foreigner?
The main applicable tax is the Inheritance and Gift Tax (ISD), whose amount depends on three factors:
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The value of the property.
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The degree of kinship between heir and deceased.
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The autonomous community where the property is located.
In Andalusia, where Marbella is located, the tax regime is particularly favourable:
since 2018, inheritances between direct relatives (parents, children, spouses) are almost exempt from paying inheritance tax, provided that the net value of the inheritance does not exceed one million euros per heir.
| Autonomous Community | Average reduction for direct heirs | Notes |
|---|---|---|
| Andalusia | Up to 99% | Highly favourable for residents and non-residents |
| Madrid | 99% | Similar regional relief |
| Catalonia | 60–80% | Higher tax burden |
| Balearic Islands | 50–90% | Benefits vary by kinship |
If the heir does not reside in Spain, the competent authority is the Spanish Tax Agency, but Andalusian tax rules may still apply thanks to European case law guaranteeing equal tax treatment for residents and non-residents (ECJ Judgment 2014/1278).
What documents are needed to inherit property in Spain as a foreigner?
The inheritance process in Spain requires a series of basic documents, which may vary depending on each case but usually include:
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Death certificate, translated and apostilled.
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Certificate from the Last Will Registry (if the deceased made a will in Spain).
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Certified copy of the will (or declaration of heirs).
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Property title deeds.
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Cadastral certificate and updated property tax receipts (IBI).
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NIE of the heir (Foreigner Identification Number).
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Proof of payment of the Inheritance and Gift Tax.
The deadline to file the tax is six months from the date of death, extendable for another six months upon request.
Therefore, it is advisable to rely on a lawyer or tax advisor familiar with the process.
What happens if the heir lives outside Spain?
If the heir does not reside in Spain, they can manage the entire process to inherit property in Spain as a foreigner through a power of attorney granted to a local representative.
The document must be signed before a notary in the country of residence and include the Hague Apostille for it to be valid in Spain.
Tax payments can also be made from abroad by bank transfer to the Spanish Tax Agency.
However, having a representative in Spain speeds up the process and prevents mistakes in submitting documents.
How can a property be transferred to another family member or buyer?
Transferring ownership during one’s lifetime can be done through:
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Donation (a free transfer of the property).
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Sale or paid transfer.
In both cases, the owner must pay the corresponding taxes:
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For a donation, the same Inheritance and Gift Tax applies.
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For a sale, a municipal capital gains tax (plusvalía) may apply, as well as a capital gains tax under the IRPF or IRNR regime.
If the donor is a foreigner, they must prove that the property is free of charges and up to date in the land registry.
Legal and tax advice is essential to optimise the process and avoid overpaying.
What are the tax differences between residents and non-residents?
| Concept | Residents in Spain | Non-residents |
|---|---|---|
| Applicable law | Spanish or nationality law | Spanish or nationality law (if stated in the will) |
| Inheritance tax | Regional relief (99% in Andalusia) | Same relief if the property is in Spain |
| Income tax | IRPF applies if there are gains | IRNR applies for non-residents |
| Wealth declaration | Mandatory if assets > €700,000 | Only for assets located in Spain |
Thanks to European regulations, non-residents enjoy the same regional tax benefits as residents, which has greatly simplified the process to inherit property in Spain as a foreigner.
What happens if there is no will?
If there is no valid will in Spain, a declaration of heirs ab intestato must be made.
This procedure is carried out before a Spanish notary and requires:
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Death certificate.
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Certificate of last will.
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Documents proving kinship (birth, marriage certificates, etc.).
Once the notarial deed is issued, the assets can be distributed, and the property registered in the heirs’ names.
Can a foreigner make a will in Spain?
Yes — and it is highly recommended.
Anyone who owns assets in Spain can make a Spanish will to simplify the process for their heirs.
This will can be limited to assets located in Spain and coexist with another will made in the person’s home country.
The Spanish will:
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Is signed before a notary (in Spanish or bilingual).
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Is registered in the General Registry of Last Wills.
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Takes full legal effect immediately upon death.
Making a Spanish will prevents costly translations and significantly speeds up the succession process, especially when you inherit property in Spain as a foreigner.
Which professionals are involved in the process?
The inheritance or transfer process involves several key professionals:
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Lawyer specialised in international inheritance law.
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Tax consultant or advisor for handling taxes and paperwork.
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Spanish notary who formalises the deed of inheritance distribution.
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Land registry officer who updates property ownership records.
At FM Properties, we collaborate with trusted law firms in Marbella specialised in real estate and international inheritance law, assisting our clients throughout the process.
Conclusion: inherit property in Spain as a foreigner with peace of mind
To inherit property in Spain as a foreigner doesn’t have to be complicated if you act in advance and have proper guidance.
Current laws promote equal treatment for residents and non-residents, particularly in regions such as Andalusia, where tax benefits are generous.
Planning ahead, drafting a Spanish will, and relying on local professionals can make all the difference between a smooth process and a challenging one.
At FM Properties, we have over 30 years of experience helping international clients protect their assets and manage their inheritance with confidence and transparency.
Frequently Asked Questions (FAQ)
1. Can a foreigner inherit a house in Spain?
Yes, with the same rights as Spanish citizens.
2. How much tax is paid on inheritance in Andalusia?
Up to 99% relief for direct relatives.
3. Is it mandatory to make a will in Spain?
No, but it is highly recommended to speed up the process.
4. What if the heir lives abroad?
They can handle everything through an apostilled power of attorney.
5. How long does an inheritance process take?
Between 3 and 9 months, depending on paperwork and complexity.
