Wills and Inheritance for Property Owners in Spain: A Guide for British Buyers

If you own property in Spain — or are about to buy — you need to think about what happens to it when you die. It is not a comfortable subject, but the consequences of ignoring it are severe: your heirs could face unexpected forced heirship rules, a punishing tax bill, or years of legal proceedings to unlock the property. This guide explains Spanish inheritance law, the Brussels IV regulation, inheritance tax in the Balearic Islands, and the practical steps every British property owner should take.

Why Spanish Inheritance Law Matters to You

Many British buyers assume that their English or Scottish will covers their Spanish property. It can — but only if you have taken specific steps to ensure it does. Without those steps, your Spanish property may be subject to Spanish inheritance rules by default, and those rules are very different from what you are used to in the UK.

The key differences:

• Forced heirship: Spanish law restricts your freedom to leave property to whomever you choose. Certain relatives have a legal right to a share of your estate.
• No joint ownership with survivorship: The English concept of “joint tenants” (where the property automatically passes to the surviving owner on death) does not exist in Spain. Co-ownership in Spain is “tenants in common” — each owner’s share forms part of their estate on death.
• Community of property (gananciales): If you are married under Spanish law (or your marriage is governed by Spanish rules), assets acquired during the marriage may be community property, which has its own inheritance implications.
• Inheritance tax varies by region: Spain’s autonomous communities set their own inheritance tax rates and allowances. The Balearic Islands have some of the most generous allowances in Spain — but you need to claim them correctly.

Forced Heirship: The Legítima

Under Spanish common succession law (Código Civil), you cannot freely dispose of your entire estate. The law reserves a portion — the legítima — for certain forced heirs (herederos forzosos):

• Children and descendants: Entitled to two-thirds of the estate. Within this two-thirds, one-third must be divided equally among all children (the legítima estricta), and one-third (the mejora) can be distributed unequally among children and descendants but must stay within that group.
• Surviving spouse: Entitled to a usufruct (right to use and enjoy) over one-third of the estate if there are children, or one-half if there are only parents, or two-thirds if there are no descendants or parents. The spouse does not receive outright ownership under forced heirship — only usufruct rights.
• Parents and ascendants: If the deceased has no children, parents are entitled to one-third of the estate (or one-half if there is no surviving spouse).

This means that under default Spanish rules, you can only freely dispose of one-third of your estate (the tercio de libre disposición) if you have children. You cannot, for example, leave everything to your spouse and nothing to your children — as you could under English law.

But here is the crucial point: British nationals can usually avoid forced heirship entirely by invoking the Brussels IV regulation. Read on.

Brussels IV: Choosing English Law

The EU Succession Regulation 650/2012, commonly known as Brussels IV, is the single most important piece of legislation for British property owners in Spain. It allows you to choose the law of your nationality to govern your entire estate, including your Spanish property.

How It Works

Under Brussels IV, the default rule is that the law of your habitual residence at the time of death governs your estate. But Article 22 allows you to make an explicit choice (professio juris) for the law of your nationality to apply instead.

For a British national, this means you can choose English law (or Scottish law, or the law of whichever UK jurisdiction applies to you) to govern the succession of your Spanish property. English law has no forced heirship — you have complete testamentary freedom to leave your property to whomever you wish.

Does Brussels IV Apply After Brexit?

Yes. Brussels IV is a universal regulation. It applies regardless of the nationality of the deceased — it does not require the person to be an EU citizen. Spanish courts and notaries apply Brussels IV to the estates of British nationals just as they do to EU nationals. Brexit has not changed this.

However, there is a nuance: the regulation refers to the law of the “state” of nationality. Since the UK is not a single legal jurisdiction (England & Wales, Scotland, and Northern Ireland each have different succession laws), the applicable law depends on which UK jurisdiction you are connected to. In practice, most British buyers in Spain are connected to England & Wales, and English law applies.

How to Make the Election

To invoke Brussels IV and choose English law, you must include an explicit declaration in your will. This is typically worded along the lines of:

“In accordance with Article 22 of EU Regulation 650/2012, I declare that the law applicable to my succession as a whole shall be the law of England and Wales, being the law of the state of my nationality.”

Without this explicit declaration, the default rule (law of habitual residence) applies. If you are habitually resident in Spain, that means Spanish law — including forced heirship — governs your estate. If you are habitually resident in the UK, English law applies by default anyway, but making the declaration removes any ambiguity.

Bottom line: Every British national who owns property in Spain should include a Brussels IV election in their will. There is no downside and it provides essential protection.

Making a Spanish Will (Testamento)

While an English will can technically cover your Spanish property, it is strongly recommended to make a separate Spanish will (testamento) to deal specifically with your Spanish assets. The reasons are practical rather than legal:

• Speed: A Spanish will can be processed by a Spanish notary immediately after death, without waiting for the English probate process. This can save months or even years.
• Cost: Processing a foreign will through the Spanish system requires official translation, apostille, and legal representation — all of which add expense and delay.
• Clarity: A Spanish will drafted in Spanish by a Spanish notary avoids interpretation issues and is immediately understood by the Spanish land registry, banks, and tax authorities.
• Brussels IV election: Your Spanish will is the natural place to include the Brussels IV choice-of-law declaration.

The Process

Making a Spanish will is straightforward and inexpensive:

1. Engage a lawyer: An English-speaking Spanish lawyer (abogado) will draft the will according to your instructions.
2. Sign before a notary: You attend a Spanish notary (notaría) with your passport and NIE. A translator must be present if you do not speak Spanish. The notary reads the will aloud, you confirm it reflects your wishes, and you sign.
3. Registration: The notary registers the will with the Central Registry of Last Wills (Registro General de Actos de Última Voluntad) in Madrid. This does not make the contents public — it simply records that a will exists and which notary holds it.
4. Cost: Typically €150–€400 for legal drafting plus notary fees. This is one of the best-value investments you can make as a Spanish property owner.

Critical Points

• Coordinate with your English will: Your Spanish will should cover only your Spanish assets. Your English will should be updated to cover only your UK and worldwide (non-Spanish) assets. If either will contains a general revocation clause (“I hereby revoke all previous wills”), it could inadvertently revoke the other. This is a common and dangerous mistake — ensure your lawyer drafts appropriate wording.
• Include the Brussels IV declaration: As discussed above, this is essential for British nationals.
• Name specific beneficiaries for Spanish assets: Be clear about who inherits the property and in what shares.
• Appoint a Spanish executor (albacea): While not legally required, naming someone in Spain (such as your lawyer) as executor or co-executor can expedite the process enormously.
• Review periodically: Review your Spanish will whenever your circumstances change — marriage, divorce, birth of children, purchase of additional property.

Inheritance Tax in the Balearic Islands

Spain’s inheritance tax (Impuesto sobre Sucesiones y Donaciones, ISD) is a national tax, but the autonomous communities have wide-ranging powers to set their own rates, allowances, and reductions. The Balearic Islands have historically been one of the most generous regions in Spain for inheritance tax, and the current rules are highly favourable for close family members.

Who Pays?

Inheritance tax is paid by the recipient (heir or beneficiary), not by the estate. Each beneficiary pays individually based on the value of what they receive, their relationship to the deceased, and the applicable allowances.

Groups of Beneficiaries

Spanish inheritance tax classifies beneficiaries into four groups, which determine the allowances and rates they receive:

Group	Relationship	Allowance (Balearics)
Group I	Children and descendants under 21	€25,000 base + €6,250 per year under 21 (max €50,000)
Group II	Children/descendants over 21, spouse, parents/ascendants	€25,000 (children/descendants and ascendants); surviving spouse: 100% reduction on habitual residence up to €180,000 + additional allowances
Group III	Siblings, aunts/uncles, nieces/nephews, in-laws	€8,000
Group IV	Everyone else (unrelated beneficiaries)	€0

Balearic Tax Rates and Reductions

The Balearic Islands apply their own tax scale, which for Groups I and II results in very low effective rates:

• Groups I and II (close family): The Balearics apply a reduction of 99% on the tax liability for children, spouse, and parents inheriting from a deceased person. This means the effective inheritance tax for close family is approximately 1% of the calculated tax — in practice, often just a few hundred euros even on a property worth several hundred thousand euros.
• Group III (siblings, etc.): Some reductions apply, but significantly less generous. Effective rates of 7–20% are common depending on the value inherited.
• Group IV (unrelated): No Balearic reductions. National rates apply with multipliers of 2.0–2.4, resulting in effective rates of 20–40% or more.

The habitual residence reduction: If the property was the deceased’s habitual residence and is inherited by the spouse, children, or parents who continue to live there, an additional reduction of up to 100% (capped at €180,000 per beneficiary) applies. This is separate from the 99% Balearic reduction and can result in zero effective tax for modest properties inherited by close family.

Non-Resident Heirs

An important development: following European Court of Justice rulings, non-residents inheriting property in Spain are now entitled to the same regional allowances and reductions as residents. Previously, non-residents were stuck with the less generous national rules. This means a British heir inheriting a Mallorca property benefits from the generous Balearic reductions even if they live in the UK.

Practical Example

A married British couple owns a property in Calvià worth €600,000. The husband dies, leaving his 50% share (€300,000) to his wife. Under the Balearic rules (with the 99% reduction for Group II), the wife’s inheritance tax liability would be approximately €200–€500 — a fraction of what it would be in many other Spanish regions, and negligible compared to what it might be in other EU countries.

By contrast, if the same property were left to an unrelated friend (Group IV), the inheritance tax could exceed €80,000–€100,000. The relationship between the deceased and the beneficiary makes an enormous difference.

The Inheritance Process in Spain

When a property owner dies, the following steps are required to transfer the Spanish property to the heirs:

1. Obtain the death certificate (certificado de defunción). If the person dies outside Spain, the certificate must be apostilled and translated.
2. Request the certificate of last wills (certificado de actos de última voluntad) from the Central Registry in Madrid. This confirms whether the deceased made a Spanish will and, if so, which notary holds it. This can be requested from 15 working days after the date of death.
3. Obtain the will from the notary identified in the certificate. If there is no Spanish will, the English will (or grant of probate) must be apostilled, officially translated, and presented.
4. Sign the deed of acceptance of inheritance (escritura de aceptación de herencia) before a Spanish notary. All heirs (or their representatives, via power of attorney) must attend.
5. Pay inheritance tax within six months of the date of death. A six-month extension is available if requested within the first five months, but interest accrues. Late payment results in surcharges of 5–20% plus interest.
6. Register the property in the heirs’ names at the Land Registry (Registro de la Propiedad). This requires proof that inheritance tax has been paid.
7. Pay the plusvalía municipal tax — a local tax on the increase in land value, payable by the heir within six months of the death. The amount depends on the cadastral land value and the number of years since the property was last transferred.

The process typically takes 3–9 months with a Spanish will, or 12–24 months without one.

Practical Steps Every British Property Owner Should Take

To protect your heirs and ensure a smooth transfer of your Spanish property:

1. Make a Spanish will covering your Spanish assets, with a Brussels IV election for English law. Cost: €150–€400.
2. Update your English will to exclude your Spanish assets and avoid conflicting revocation clauses.
3. Maintain a file of essential documents: purchase deed, NIE, IBI receipts, insurance policies, bank details, utility contracts. Your heirs will need all of these.
4. Consider a power of attorney (poder notarial) so a trusted person in Spain can act on your behalf if you become incapacitated.
5. Tell your heirs that a Spanish will exists, where it is held, and who your Spanish lawyer is.

Common Mistakes to Avoid

• Not making a Spanish will at all — the most common and costliest mistake. Processing English probate through the Spanish system costs far more than the €200–€400 for a Spanish will.
• Conflicting revocation clauses in the English and Spanish wills, where one inadvertently revokes the other.
• Forgetting the Brussels IV election — one sentence in your will prevents forced heirship from applying.
• Missing the six-month tax deadline — late payment triggers automatic surcharges of 5–20%.
• Assuming joint ownership provides automatic inheritance — it does not in Spain. Each owner’s share forms part of their estate.

Do You Need Professional Advice?

Yes. The interaction between English and Spanish succession law requires specialist knowledge. A good English-speaking Spanish lawyer will cost €500–€1,500 for comprehensive advice and will drafting — a fraction of what poor planning could cost your heirs. Your conveyancing lawyer can often prepare your Spanish will alongside the purchase, for a combined fee. For financing, see our free mortgage comparison, and for purchase costs, read our buying costs breakdown.