Property inheritance in Spain: 2026 guide for foreign heirs

Inheriting property in Spain as a foreigner means navigating six different bureaucracies in two languages, with hard deadlines and big tax consequences. This guide walks through every step, from receiving the news to having the property registered in your name (or sold), with realistic timelines and costs.

Step-by-step process

1. Death certificate

The first document. Issued by the Civil Registry (Registro Civil) in Spain if death occurred here, or by the foreign authority + apostille + sworn translation if abroad. Without this, nothing else can move.

2. Last Wills Certificate (available 15 working days after the death)

Once 15 working days have passed since the death, file Modelo 790 with the Spanish Ministry of Justice. The certificate states whether the deceased left a Spanish will and, if so, before which notary. Cost: a small fee. Time: 5-10 working days.

3. Obtain the will

If a Spanish will exists, the named notary issues a copy (an “authorized copy”) for the heirs. If there is no Spanish will, a foreign will can be used in Spain (apostilled and translated), and EU Regulation 650/2012 decides which country’s law governs the succession. If there is no will at all, the intestate rules of that law apply and, under Spanish law, heir status is declared by a notary (declaración de herederos abintestato).

4. Identify the heirs

Under Spanish law (or your national law if professio iuris was elected), determine who the heirs are and in what proportions. For multiple heirs, you proceed jointly.

5. NIE for each heir

Every foreign heir — resident or not — needs a Spanish NIE (foreigner’s ID number). Required to pay tax, sign the deed, and register the property. Time: 1-3 weeks. Cost: ~€10 per NIE.

6. Property due diligence

Before signing anything, audit the property:

• Land Registry note (Nota Simple) — confirms ownership, debts, encumbrances, mortgages.
• Cadastral data — confirms the property’s official description and assessed value.
• IBI (council tax) status — pending payments are part of the estate’s debts.
• Community fees — request certificate from the community administrator showing arrears.
• Utility bills — water, electricity, gas, internet — pending amounts.
• Undeclared works — if there are extensions, pools or buildings not in the registry, regularize before transfer.

7. Inventory and valuation

Assemble the inventory: properties, vehicles, bank accounts, investments, life insurance, art, jewellery. Each is valued at fair market value as of the date of death. Properties: the “valor de referencia” published by the state Cadastre (since 2022) is the minimum taxable value; a higher declared value prevails (art. 9 of Law 29/1987). Banks: certificate of balances at date of death.

8. Spanish Inheritance Tax (Modelo 650) — 6 month deadline

Non-resident heirs, and all heirs of a deceased who lived abroad, file the state Modelo 650 with the State Tax Agency (AEAT, Oficina Nacional de Gestión Tributaria), applying the rules of the region where the deceased lived or, if the deceased lived abroad, where the greater value of the Spanish assets is located (Second Additional Provision of Law 29/1987). Resident heirs of a deceased who lived in Andalucía file with the Agencia Tributaria de Andalucía. Under the Andalusian rules (Law 5/2021) the spouse, descendants and ascendants apply a reduction of €1,000,000 per heir (art. 28), a 99 % reduction for the deceased’s main home if they keep it for three years (art. 27), a 99 % reduction for a qualifying family business (arts. 30 and 31), the state reduction for life insurance (up to €9,195.49) and a 99 % bonification on the tax (art. 39). Siblings, nephews and nieces and unrelated heirs have no bonification. Heirs resident outside the EU must appoint a representative in Spain before the deadline (art. 18.4 of the Regulations).

9. Plusvalía Municipal — 6 month deadline

File at the town hall where the property is located. The tax is calculated on the cadastral land value with the coefficient for the years of ownership; if the real increase in value (purchase price against value at death, in the land’s proportion) is lower, that is taxed instead, and with no increase there is no tax (arts. 104.5 and 107 of the Local Finance Act). We calculate both. Many town halls grant a bonification of up to 95 % for the deceased’s home when the heirs are the spouse, descendants or ascendants (art. 108.4); the percentage and conditions depend on each ordinance — in Málaga city, for example, it ranges from 95 % to 25 % according to the cadastral value. The deadline is six months from the death, extendable to one year on request (art. 110.2.b).

10. Inheritance deed before a Spanish notary

The “Escritura de Aceptación y Adjudicación de Herencia”. Signed by all heirs (or by lawyers with power of attorney). The notary records the transfer of ownership, the partition (who gets what), and the acceptance of the inheritance. Notary fees: typically €600-€1,500 depending on the deed’s value.

11. Property registration

The deed is filed at the relevant Land Registry once the Inheritance Tax and the plusvalía have been filed, which the Registry checks before registering (art. 254 of the Mortgage Act). There is no legal deadline, but until the property is registered in your name you cannot sell or mortgage it with full legal protection (art. 20 of the Mortgage Act). Registration fees: typically €200-€600 depending on value. Once registered, the property is officially yours.

12. Bank accounts and other assets

Notify the banks. Each bank has its own internal process (form, certified copies, declarations). Funds are transferred to your account or to a Spanish account in your name. For brokers and life insurance, similar process.

13. Vehicle transfer (if applicable)

Spanish-registered vehicles need a transfer at the Jefatura de Tráfico. Cost: ~€55 per vehicle.

14. Decision on the property: keep, rent or sell?

Once the property is yours, you can:

• Keep it for personal use or holiday home.
• Rent it — long-term residential or short-term tourist (the latter requires registering the property as a vivienda con fines turísticos (VFT) in Andalucía; an existing registration in the deceased’s name has to be updated to the new owner).
• Sell it — taxable gain in Spain (non-residents pay 19 % Non-Resident Income Tax, IRNR, on the gain) and potentially in your home country.

Total cost — typical example

Apartment in Costa del Sol valued at €350,000, single heir from UK, Group II:

• Spanish Inheritance Tax: €0 for a child, spouse or parent under the Andalusian rules (reduction of €1,000,000 per heir); the return must still be filed
• Plusvalía Municipal: ~€1,200 (real method)
• Notary fees: ~€700
• Land Registry: ~€350
• NIE, certificates, sworn translations: ~€300
• Professional fees (lawyer): ~€2,800
• Total: ~€5,350 for a €350,000 inheritance.

Timeline

Common mistakes to avoid

• Missing the 6-month deadline. Surcharge of 1 % plus 1 % per full month of delay, and 15 % plus interest after twelve months (art. 27 of the General Tax Act). The most common and most expensive mistake.
• Not claiming regional bonifications. If you don’t ask for it, you don’t get it. Each region has its own rules and forms.
• Underdeclaring the value below the “valor de referencia”. Triggers an automatic re-assessment by the tax authority.
• Selling before registering. The inheritance deed must be registered (or presented at the same time) so that the buyer can register the purchase: the Registry requires an unbroken chain of title (art. 20 of the Mortgage Act).
• Ignoring undeclared works. Discovered later, they reduce the sale price and may require regularization at higher cost.
• Forgetting Modelo 720 (foreign assets) if you become a Spanish tax resident. If you keep the property and move to Spain later, this is a separate ongoing obligation.

Selling the inherited property

If you decide to sell, key tax considerations:

• Non-Resident Income Tax (IRNR), 19 % on the gain. Difference between the value declared at inheritance and the sale price = taxable gain. Filed via Modelo 210.
• 3% retention. The buyer must withhold 3% of the sale price and pay it to the Spanish tax authority. You then file Modelo 210 to settle the actual tax due (often less than 3%, in which case you get a refund).
• Plusvalía Municipal again. Yes, you pay it again on the sale (it’s a tax on each transfer). Same dual calculation method.
• Foreign tax obligations. The gain may also be taxable in your home country, subject to double taxation treaty provisions.

Frequently asked questions

Can I sell the inherited property without registering it first?

In practice, no. You become the owner when you accept the inheritance, but the buyer cannot register the purchase unless the inheritance deed has been registered first or is presented together with the sale (unbroken chain of title, art. 20 of the Mortgage Act), and no buyer or bank will complete without it. Both deeds can be signed on the same day.

What if multiple heirs disagree on what to do?

If unanimous agreement is impossible: 1) extinción del condominio (one heir buys out the others, paying ITP on their share); 2) judicial partition (court orders sale and distribution); 3) sale to a third party with proceeds split. Mediation often resolves these without court.

Do I have to declare the inheritance in my home country?

Depends on the country. UK: inheritance from a deceased’s estate is not generally taxable to the heir in the UK (UK Inheritance Tax falls on the estate of the deceased). USA: similar — federal estate tax falls on the estate, not the heir. Most EU countries: depends. We coordinate with your home-country advisor.

Can I rent the property as a holiday let after inheriting?

Yes, but in Andalucía you need a VFT (vivienda con fines turísticos) registration. If the deceased had a VFT registration, it has to be updated to your name with the Junta de Andalucía; if not, a new registration is needed before letting.

What if the deceased’s spouse is still alive — does the spouse inherit everything?

It depends on which national law applies (EU Regulation 650/2012). Under the Spanish Civil Code, when there are children the surviving spouse is entitled to a life usufruct of one third of the estate (art. 834) and the children are entitled to two thirds as their forced share (art. 808); a will can give the spouse more only within those limits. Under English law (if chosen in the will), the will determines the distribution and the spouse may inherit everything.

What if I want to refuse (renounce) the inheritance?

Renunciation must be made in a public deed, normally before a Spanish notary (a deed before a notary in your own country can be accepted if it is equivalent, apostilled and translated), and it is irrevocable (arts. 997 and 1008 of the Civil Code). Consider: if you renounce, your share goes to the next heir in line; this does not eliminate the tax — the next heir pays it.

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Read the full guide: Inheritance in Spain for non-residents →