⚖️ Worried About Paying Tax Twice on a Spanish Inheritance?
If you’re a foreign national inheriting assets in Spain, you might be subject to inheritance tax both in Spain and in your home country.
Without the right legal strategy, you could be taxed twice on the same inheritance — once by Spain, and again by your country of residence. Fortunately, in many cases, this can be avoided legally.
This article explains how Spanish inheritance tax treaties and planning strategies work to reduce or eliminate double taxation for expats and non-residents.
🔁 What Is Double Taxation on Inheritances?
Double taxation occurs when two countries both claim tax rights over the same inheritance.
Example:
You live in the UK and inherit a home in Spain.
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Spain taxes you on the value of the Spanish property
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The UK also taxes you on your global inheritance, including that property
You pay two tax bills — unless a treaty or tax credit applies.
🌐 Does Spain Have Inheritance Tax Treaties?
Unlike income tax, Spain has very few inheritance tax treaties. Only these countries have a formal treaty that covers inheritance tax:
| Country | Treaty Status |
|---|---|
| France | ✅ Yes – full treaty |
| Sweden | ✅ Yes – full treaty |
| Greece | ✅ Yes – partial coverage |
| Germany | ✅ Limited coverage |
| USA, UK, Canada, Australia, etc. | ❌ No treaty |
In most cases, Spain does not allow tax credits for taxes paid abroad — and the same goes for countries like the UK or USA.
🧩 How to Avoid Double Taxation Without a Treaty
Even without a treaty, there are legal workarounds, such as:
1. ✅ Use of Foreign Tax Credits (Home Country)
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Many countries allow you to deduct tax already paid in Spain
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You must show proof of payment (e.g. Modelo 650, notary deed)
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The credit may not cover 100%, depending on local rules
2. ✅ Inheritance Tax Planning
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Advance structuring (e.g. via gifts, trusts, or wills**) may reduce overlap
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Some countries exempt foreign assets under thresholds
3. ✅ Regional Tax Optimization
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Some Spanish regions (like Madrid or Andalucía) offer near-zero tax for children/spouses
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You may reduce the tax in Spain enough that the foreign tax credit covers the rest
💡 Tips for Expats and Foreign Heirs
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✅ Check whether your home country allows foreign tax credits
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✅ File Spanish inheritance tax first, so you can prove the amount paid
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✅ Avoid informal transfers — register everything properly to claim deductions
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✅ Consult both a Spanish lawyer and a local tax advisor
📑 Documents Needed to Claim Tax Relief
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Proof of inheritance tax paid in Spain (Modelo 650, payment receipt)
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Notarized inheritance deed
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Proof of value of inherited assets
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Certified translations, if required by your home tax authority
⚠️ Common Pitfalls to Avoid
| Mistake | Consequence |
|---|---|
| Not filing in Spain | Can’t prove taxes paid — no relief abroad |
| Late filings or penalties | May void eligibility for credit/treaty use |
| Assuming Spain will accept foreign credits | Spain does not typically allow them |
| Not getting legal advice | Leads to unnecessary double taxation |
⚖️ Why Work with a Spanish Inheritance Lawyer?
We help you:
✅ Structure inheritances to reduce tax in Spain
✅ Coordinate with international accountants
✅ Handle all Spanish filings and declarations
✅ Translate and notarize documents for foreign tax offices
✅ Avoid delays, penalties, and overpayment
📞 Inheriting from Spain? Get Expert Legal Help Now
Avoid the stress and cost of double taxation. Whether or not your country has a treaty with Spain, we help you file correctly, minimize exposure, and comply in both countries.
👉 Book a consultation with a Spanish inheritance tax lawyer now.