How to Transfer Inherited Property in Spain Legally & Tax-Efficiently

🇪🇸 Inheriting a Property? That’s Only Half the Process

When you inherit real estate in Spain, you don’t automatically become the legal owner — not until the inheritance is formally accepted, taxes are paid, and the transfer is registered in the Spanish Land Registry.

If you’re a foreign heir or expat, this guide explains how to:

  • Complete the legal transfer of ownership

  • Avoid penalties, overpayment, or legal roadblocks

  • Ensure a clean title and proper registration


🔁 Step-by-Step Guide to Transferring Inherited Property in Spain

1. ✅ Gather Required Documents

You’ll need:

  • Death certificate (apostilled + translated if foreign)

  • Last will (Spanish or foreign, with translation if needed)

  • NIE number for each heir

  • Proof of relationship to the deceased (birth/marriage certificates)

  • Property deed (escritura) and cadastral reference


2. ✅ Pay Inheritance Tax (Modelo 650)

You must:

  • File Modelo 650 within 6 months of the date of death

  • Request an extension (within 5 months) if more time is needed

  • Calculate regional tax reductions, if eligible (e.g. in Madrid, Andalucía)

💡 In some regions, spouses and children may pay little or no tax, but only if they file correctly.


3. ✅ Sign the Deed of Acceptance (Escritura de Aceptación)

A notary will prepare a public deed of inheritance (escritura pública):

  • Confirms your legal right to the property

  • Declares your intention to accept the inheritance

  • Lists the property details, value, and tax payment

All heirs (or their legal representatives with Power of Attorney) must attend or be represented.


4. ✅ Pay Plusvalía Municipal

This is a separate local tax on the increase in land value since the last transfer.

  • Paid to the local town hall

  • Based on property location and length of prior ownership

  • Often overlooked by foreign heirs — but required before registration


5. ✅ Register the Inherited Property in Your Name

File the inheritance deed and tax receipts with:

  • Spanish Land Registry (Registro de la Propiedad)

  • Cadastral Office (Catastro), to update property records

Once registered, the property is legally yours — and you can rent, sell, or renovate it freely.


🧾 Common Mistakes When Transferring Inherited Property

Mistake Consequence
Not paying inheritance tax Registration denied; penalties applied
Skipping Plusvalía Municipal Risk of fines or legal issues
Using an unregistered will Long delays and extra costs
Not translating foreign documents properly Rejections at notary or registry
Failing to update land registry Future legal problems with resale

📊 How to Minimize Tax on the Transfer

  • Claim regional exemptions (e.g. 99% in Madrid or Andalucía)

  • Use fair market valuation instead of overestimated tax values

  • Explore gifting options before death to reduce taxable estate

  • Work with a lawyer to appeal unfair valuations

💡 If the property’s declared value is too high, the tax bill will increase. But you can challenge it with legal help.


⚖️ How a Lawyer Can Help

Our firm handles:
✅ End-to-end management of the inheritance process
✅ Notary coordination and deed preparation
✅ NIE application and property title transfer
✅ Payment of Modelo 650 and Plusvalía
✅ Registration with Land Registry and Catastro
✅ Representing foreign heirs via Power of Attorney


📞 Need to Transfer Inherited Property in Spain?

We help foreign heirs and expats navigate the legal process of taking ownership of inherited property — quickly, safely, and tax-efficiently.

👉 Book a consultation with a Spanish inheritance lawyer today.

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