Inheriting Property in Spain – Legal & Tax Guide for Foreign Heirs

🇪🇸 Have You Inherited a Home or Land in Spain?

If you’re a foreigner inheriting property in Spain, you’ll need to navigate Spain’s legal and tax system to take legal possession, pay inheritance tax, and register the new ownership.

This process involves:

  • Legal declaration of heirs

  • Filing inheritance tax (Modelo 650)

  • Signing a notarial deed of acceptance

  • Registering the change of ownership with the Land Registry

It’s critical to follow the correct steps — or you may be unable to sell, rent, or use the property legally.


🧭 Step-by-Step: How to Inherit Property in Spain as a Foreigner

1. ✅ Obtain a Death Certificate

If the deceased passed away abroad, you’ll need:

  • Apostilled death certificate

  • Official Spanish translation

2. ✅ Gather Legal Documents

You’ll need:

  • The deceased’s will (Spanish or foreign)

  • NIE for each heir (non-resident ID number)

  • Passport copies

  • Proof of your relationship to the deceased

3. ✅ Execute Declaration of Heirs

  • If there’s no Spanish will, this must be done via notary

  • If a will exists, the notary may proceed directly to the inheritance deed

4. ✅ File Inheritance Tax (Modelo 650)

  • Tax is due within 6 months of the date of death

  • Extensions may be available if requested within 5 months

5. ✅ Sign the Deed of Acceptance

  • The public deed must be signed before a Spanish notary

  • All heirs (or their lawyers with power of attorney) must be represented

6. ✅ Register the Property

  • File the signed deed and tax payment proof with the Spanish Land Registry


💶 Taxes You May Owe When Inheriting Property

Tax Type Applies To
Inheritance Tax Based on property value, relationship, and region
Plusvalía Municipal Local capital gains tax on land value increase

Most foreigners are subject to national inheritance tax, unless they qualify for regional reductions (e.g., in Madrid or Andalucía).

💡 Even if the property is not used or sold, tax must be paid before transfer.


🌍 Regional Tax Reductions for Inheriting Property

Region Child or Spouse Exemption? Notes
Andalucía ✅ Up to 100% exemption For close family on primary residence
Madrid ✅ 99% reduction Includes other heirs in Group I & II
Valencia 🔶 Partial reduction Residence-based eligibility
Catalonia 🔶 Reduced rate + bonus Formal proof of residency often needed

📌 Non-residents may need to prove the deceased or heir had regional ties to qualify.


📉 Property Value & Valuation

Spanish tax authorities use the Cadastral Value (valor catastral) and other factors to assess the property value. In some cases, an official valuation may be required.

If you believe the valuation is unfairly high, a lawyer can challenge it to reduce tax liability.


🧾 Additional Documents Often Required

  • Property title deed (escritura)

  • Proof of utilities or bank accounts tied to the property

  • Spanish will registration certificate (Últimas Voluntades)

  • Certificate of encumbrances or mortgage status


❗ What Happens If You Don’t Accept or Register the Inheritance?

If you don’t complete the legal process:

  • You can’t sell or rent the property

  • The property remains in legal limbo

  • You may face fines or back taxes

  • Co-heirs may take legal action to force partition

You can also renounce the inheritance if the property is over-leveraged or you want to avoid debt.


⚖️ Why Work with a Spanish Inheritance Lawyer?

A bilingual inheritance lawyer can:
✅ Represent you via power of attorney
✅ Handle the tax filings and property transfer
✅ Maximize exemptions and deductions
✅ Liaise with notaries, registries, and tax authorities
✅ Avoid delays, rejections, and costly mistakes


📞 Inherited Property in Spain? Get Legal Help Now

We help foreign heirs transfer, register, and manage Spanish property inheritances — all in English. Avoid hidden taxes and legal obstacles with expert support.

👉 Contact us now for inheritance property assistance in Spain.

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