Distribution of Assets in Case of Death in Spain: Legal Guide for Foreigners

Introduction: Spanish Inheritance Law Overview

The distribution of assets after death in Spain is governed by a mix of national civil law, regional rules, and EU Regulation 650/2012. Whether you’re a Spanish resident, expat, or foreign property owner, your estate may be subject to Spain’s forced heirship system unless specific legal planning is done.


📜 Key Legal Concepts in Spanish Succession

👪 Forced Heirship Rules (Legítima)

  • Children and descendants are entitled to two-thirds of the estate:

    • 1/3 is divided equally (mandatory)

    • 1/3 may be allocated among children at the testator’s discretion

    • 1/3 is freely disposable

🧾 Testament (Will)

  • A Spanish will is highly recommended for assets located in Spain

  • A foreign will can be valid in Spain if properly legalized and translated

  • Expats can choose their home country law to apply (must be expressly stated in the will)

📌 Without a will, Spanish intestacy law applies — prioritizing children, spouse, then parents


🌍 European Succession Regulation (EU Regulation 650/2012)

If the deceased was an EU resident (excluding Ireland and Denmark), the law of their habitual residence applies by default — unless they specify another jurisdiction in their will.

✅ Foreign nationals can elect their national law to govern their Spanish assets
❌ If no choice is made, Spanish law may apply by default — including forced heirship


🏠 What Happens to Real Estate and Assets in Spain?

🏘️ Spanish Real Estate

  • Inheritance of Spanish property is subject to Spanish law, including succession and tax rules

  • Even if heirs are outside Spain, the transfer of title must be formalized through a Spanish notary

💶 Bank Accounts, Shares, Vehicles

  • Require a certificate of inheritance (Declaración de Herederos)

  • Must be registered with the Spanish tax office (Hacienda)

  • Bank accounts remain frozen until the inheritance process is resolved

📎 Documentation must be notarized, translated, and filed properly for foreign heirs


🧾 Inheritance Process Step-by-Step

  1. Obtain death certificate (international format recommended)

  2. Check for a Spanish will in the Central Registry of Wills

  3. Prepare a declaration of heirs (if no will)

  4. File inheritance tax return (Impuesto de Sucesiones y Donaciones)

  5. Sign deed of acceptance of inheritance (Escritura de Aceptación de Herencia)

  6. Update land registry, vehicle registry, or shareholder registry

⚖️ Delays or incorrect documentation can result in fines or blocked inheritance


💸 Inheritance Tax in Spain

  • Tax rates vary by autonomous region and relationship to the deceased

  • Spouses and children usually benefit from reductions

  • Non-residents must file tax returns within 6 months (can be extended)

💡 Heirs from outside Spain often overpay due to lack of legal assistance


🌐 Cross-Border and Foreign Heirs

Foreign nationals inheriting Spanish assets must:

  • Obtain NIE numbers (Spanish tax ID)

  • Appoint a Spanish legal representative or notary

  • File tax and register documents in Spain

🛡️ At Borderless Lawyers, we assist international clients with inheritance formalities, tax strategy, and legal defense in Spain


💬 Real-World Case

Case: A Canadian citizen passed away in Valencia owning a home and bank account. His will applied Canadian law. We helped the widow bypass forced heirship claims, file inheritance tax, and retitle the property within 3 months.


🤝 Why Work with Borderless Lawyers?

✅ Legal advice in English and Spanish
✅ Experts in inheritance for foreigners and cross-border families
✅ Full estate planning and probate support
✅ Assistance with NIEs, wills, and inheritance tax
✅ Local notary coordination


📞 Need Help with Inheritance in Spain?

If you’re managing or planning for the distribution of assets after death in Spain, Borderless Lawyers provides legal certainty and peace of mind.

📲 Get in touch now for strategic succession and inheritance planning tailored to expats and international families.

error: Content is protected !!