Inheritance Law in Spain: What Happens to Your Spanish Property When You Die?

If you own a villa, apartment or plot on the Costa Blanca — or are thinking of buying — there is a question you should take seriously sooner or later: what happens to my Spanish property when I die?

Many foreigners assume that a will made at home is sufficient. The reality is more complex. Spanish inheritance law applies to your property in Spain, and without proper planning your heirs could face a long and expensive process.

Which law applies — Spanish or your home country’s law?

Since 2015, EU Succession Regulation No. 650/2012 has applied across the EU. It means that as an EU citizen you can choose to have your home country’s law govern your entire estate — including your Spanish property — provided you state this explicitly in a will.

If you make no active choice, the default rule is the law of the country where you were habitually resident at the time of death. If you live permanently in Spain, Spanish law applies. If you live in the UK or Scandinavia but own property in Spain, your home country’s law will generally apply — but you should still have a Spanish will to simplify the process.

Who inherits your Spanish property?

Without a will, your estate is distributed according to Spanish intestate succession law. Spanish legislation gives priority in the following order:

1. Children and grandchildren
2. Parents and siblings
3. Other relatives up to the fourth degree
4. The Spanish State (as a last resort)

Note: In Spain, a spouse does not automatically inherit the property itself — only the right to use it (usufructo). This means children may become the legal owners of the home while the surviving spouse has only a right of use. This can create very complicated practical situations.

What is a Spanish will and why do you need one?

A Spanish will (testamento notarial) is drawn up before a Spanish notary and registered in the national will registry in Madrid. It is by far the simplest and fastest way to ensure your wishes are respected.

With a Spanish will you can:

• Decide who inherits your Spanish property
• Choose to apply your home country’s succession law
• Simplify and speed up the inheritance process for your heirs
• Avoid costly and time-consuming court proceedings

Without a Spanish will, your heirs will need to apostille and translate your home-country will, prove your civil status and residency — all before Spanish authorities. This takes longer and costs more.

How does inheritance tax work in Spain?

Inheritance tax (Impuesto de Sucesiones y Donaciones) is a regional tax. In the Comunidad Valenciana — where the Costa Blanca is located — a 99% tax reduction has applied since 2023 for heirs in the direct line (children, grandchildren, parents) who are resident in the EU. In practice, children who inherit a property in the region pay virtually no inheritance tax.

For heirs outside this group — siblings, cousins, unmarried partners without a registered partnership, or friends — the rates are significantly higher and there are no generous allowances.

The inheritance process in Spain — how does it work?

When a person with property in Spain dies, a process known as aceptación y adjudicación de herencia begins. In brief:

1. Obtain the death certificate and apostille it for use in Spain
2. Search the Spanish will registry to check for a will
3. Draw up an inheritance deed (escritura de herencia) before a Spanish notary
4. Pay inheritance tax within six months of the date of death
5. Register the property in the Land Registry in the heir’s name

The whole process typically takes three to six months if everything is in order, but can take much longer if documents are missing or the will is unclear.

Summary — what should you do?

If you own property in Spain, we recommend that you:

• Draw up a Spanish will before a notary in Spain
• Consider whether to choose your home country’s law in the will
• Inform your family where the will is kept and what it contains
• Appoint a local lawyer to guide your heirs through the inheritance process in Spain

Inheritance planning is not something you do in a crisis — it is a gift you give to the people you love.