8 inheritance mistakes to avoid if you own property in Spain

Owning property in Spain as a non-resident comes with specific legal obligations that do not end during your lifetime — they extend to what happens to your assets after you die. This article covers eight of the most common inheritance planning mistakes made by foreign property owners in Spain, from failing to draft a Spanish will to leaving heirs unprepared to act. Each mistake is avoidable with the right legal advice. At Ábaco Advisers, we work with international property owners across Spain to put succession arrangements in place that genuinely protect both assets and families.

Mistake 1: Not drafting a Spanish will — why is it so important?

Not having a Spanish will (testamento) means your heirs face a significantly more complex, slower, and costlier process when they come to inherit your Spanish property. It is the single most avoidable mistake a foreign property owner can make.

Although there is no legal obligation to make a Spanish will, it is strongly recommended for anyone with assets in Spain. A Spanish will (testamento) is signed before a Spanish notary and registered centrally at the Registro General de Actos de Última Voluntad, governed by Real Decreto 479/2013. This means your heirs can always locate your most recent will quickly and begin probate in Spain .

Without a Spanish will, a foreign will must be officially translated by a sworn translator before it is recognised in Spain. Additionally, you will need a certificate of inheritance issued in your country based on the will drawn up there. Your heirs will also need to:

• obtain an apostille from the relevant foreign authority. This will always be required for documents issued in the country of origin (death certificate, certificate of inheritance, etc.), regardless of whether there is a will in Spain or not.
• involve lawyers in your home country
• coordinate between two legal systems at an already difficult time

The practical and financial cost of this process is considerable, and entirely avoidable with a will drafted in Spain.

Mistake 2: Assuming your home country will cover everything — does it?

A will made in your home country does not automatically govern your Spanish property. The law that applies to an inheritance depends primarily on where you were habitually resident at the time of death — not on your nationality.

Under EU Succession Regulation 650/2012 (Article 21), the default rule is that the succession is governed by the law of the deceased’s last habitual residence. If you were considered habitually resident in Spain, Spanish succession law will apply to your entire estate — including assets in other countries — unless you have made an explicit choice to the contrary.

Article 22 of the same Regulation allows you to choose the law of your nationality instead, but this choice must be expressly declared in a will. It does not arise automatically by virtue of being a foreign national.

A further practical risk: if your home country will refers broadly to “all my assets” and is dated after your Spanish will, it may take precedence over the Spanish document and distribute your Spanish property in a way you never intended.

Mistake 3: Ignoring statutory shares (legítimas) — what are they and why do they matter?

Spanish law reserves a substantial portion of every estate for certain heirs by right, regardless of what your will says. If you ignore this, your wishes may be legally overridden after your death.

Under Articles 806 to 840 of the Spanish Civil Code, descendants are entitled to two-thirds of the estate as a protected share (legítima). The structure works as follows:

If you choose the law of your nationality under EU Regulation 650/2012, the Spanish legítimas may not apply — but only if that choice is correctly declared in your Spanish will. The assumption that your home country’s rules apply automatically is a common and costly mistake.

Mistake 4: Failing to plan for the liquidity to cover inheritance tax — what is the real cost?

Your heirs are generally required to pay inheritance tax before they can take formal ownership of your Spanish property. If they do not have liquid funds available, the consequences can be severe.

The Impuesto sobre Sucesiones y Donaciones (ISD), governed by Ley 29/1987, is assessed on each beneficiary individually, not on the estate as a whole. Under Article 67 of Real Decreto 1629/1991, heirs have six months from the date of death to file and pay. A single six-month extension can be requested, though interest accrues from the original deadline.

The amount owed varies considerably depending on:

• the autonomous community where the property is located (ISD is a regional competence)
• the value of what each heir inherits
• the relationship between the deceased and each beneficiary

Regions such as Madrid and Andalucía have introduced significant reductions for direct family members; others are considerably less generous. If heirs cannot pay in time, a forced sale of the property — often at a price below market value — may become the only option.

Planning tools worth considering with your adviser:

• life insurance structured to cover the ISD liability
• distributing the property among multiple heirs to maximise individual tax-free thresholds in the event that the tax reductions cannot be applied because the beneficiary does not fall within Group I or II as close relative.
• exploring a lifetime donation (donación de bienes) if it is more tax-efficient for your circumstances

Mistake 5: Leaving property in joint ownership with no agreement — what problems can arise?

Joint ownership (proindiviso) of Spanish property without a clear agreement in place is one of the most reliable routes to family conflict. Multiple heirs with different priorities and no exit plan create a situation that is difficult and expensive to resolve.

Under Article 400 of the Spanish Civil Code, any co-owner can request the dissolution of the shared ownership at any time (acción de división de la cosa común). This means any one heir can force a judicial sale of the property regardless of the wishes of the others. Beyond that risk, day-to-day decisions — renting the property, authorising works, selling — all require the unanimous consent of co-owners.

When heirs live in different countries, speak different languages, and have different financial needs, reaching that consensus is rarely straightforward.

Practical solutions to address this before it becomes a problem:

• clear division of the estate in your will, allocating the property outright to one heir with appropriate compensation for others
• a pacto de indivisión setting out how the property will be managed during any transitional period
• an advance discussion about whether one heir wishes to buy out the others

Mistake 6: Not declaring your choice of applicable law — why does the exact wording of your will matter?

If you want your home country’s succession law to govern the inheritance of your Spanish property, this must be explicitly written into your will. A qualified legal professional must include the specific clause — it does not arise by default.

As set out in Article 22 of EU Succession Regulation 650/2012, a person may choose the law of their nationality to apply to their succession as a whole. This is a single clause that a specialist solicitor can include when drafting your Spanish will — but it is frequently omitted, often because the will was prepared without cross-border legal expertise.

Choosing the law of your nationality means respecting the forced heirship rules of your country, but the formalities to be followed will be those of the inheritance procedure in Spain.

The clause is simple to include at drafting stage and difficult to add retroactively without rewriting the entire will.

Mistake 7: Failing to update your will after major life changes — when should you review it?

A Spanish will reflects your circumstances at the moment it is signed. If your personal or financial situation changes significantly, your will may no longer represent your intentions.

Events that should prompt a review include:

• marriage or divorce
• the birth or death of a named beneficiary
• the acquisition of additional Spanish property
• a significant change in the value of your estate
• a change of habitual residence

It is worth noting that under Real Decreto 479/2013, all Spanish wills are registered centrally and the most recent will supersedes all previous versions. However, the entire will must be rewritten — it cannot simply be amended or annotated. This is a practical reason to avoid excessive detail about minor assets at drafting stage, as it generates unnecessary rewrites.

If you also have a will in your home country, ensure both documents are coordinated and do not conflict. A later-dated home country will referring to “all my worldwide assets” may inadvertently override your Spanish arrangements.

Mistake 8: Leaving your heirs with no idea what to do — is your family prepared?

Even a carefully drafted will achieves little if your heirs do not know it exists, cannot find it, or have no idea which professionals to contact when the time comes. Communication is part of good planning.

Many owners complete their legal arrangements and never discuss them with the people who will need to act on them. Once your Spanish will is in place, consider sharing the following with your heirs:

• that a Spanish will exists and where a copy can be found
• the name and contact details of your Spanish solicitor
• a list of your Spanish property or properties
• your NIE number (Número de Identificación de Extranjero)
• details of any Spanish bank accounts
• the name of your tax representative, if you have one

It is also worth considering granting a trusted person power of attorney (poder notarial) to act on your behalf in Spain should you become incapacitated before you die. This allows someone you trust to manage your Spanish affairs, pay taxes, and deal with correspondence without requiring a court order.

In conclusion

Spanish inheritance planning for foreign property owners involves a specific set of legal rules that differ meaningfully from most home country systems. The eight mistakes outlined above — from the absence of a Spanish will to leaving heirs with no guidance — are all avoidable. The most impactful steps you can take are: drafting a Spanish will, declaring your choice of applicable law, planning for the tax liability your heirs will face, and briefing your family on what to do.

If you would like to review your current arrangements or put a plan in place for the first time, contact Ábaco Advisers .

Frequently asked questions

Can a will from my home country be used to inherit property in Spain?

Yes, but it must be officially translated by a sworn translator and, in most cases, apostilled before it is recognised in Spain. This process is slower and more costly than using a Spanish will. Having a Spanish will in place alongside your home country will is the most efficient approach for anyone with assets in Spain.

How long do heirs have to pay inheritance tax in Spain?

Under Real Decreto 1629/1991, heirs have six months from the date of death to file and pay the Impuesto sobre Sucesiones y Donaciones. A single six-month extension can be requested, but interest applies from the original deadline. The property cannot be formally transferred into the heirs’ names until the tax is settled.

Does Spain have forced heirship rules that limit what I can leave in my will?

Yes. Under Articles 806–840 of the Spanish Civil Code, descendants are entitled to two-thirds of the estate as a protected share (legítima). If you wish to apply the succession law of your own nationality — which may offer broader testamentary freedom — this must be explicitly declared in your Spanish will under Article 22 of EU Succession Regulation 650/2012.

Is inheritance tax in Spain the same in every region?

No. The Impuesto sobre Sucesiones y Donaciones is a regional competence and rates, reductions, and bonuses vary significantly between autonomous communities. The tax liability for a direct heir in one region can differ substantially from that in another for the same property value. Professional advice specific to the region where your property is located is important.

What happens if a non-resident dies owning Spanish property without any will?

Spanish intestacy rules (sucesión intestada), governed by Articles 912–958 of the Spanish Civil Code, apply to the Spanish property. The distribution follows a fixed order of priority that may not reflect the deceased’s wishes. The process is also significantly slower, more expensive, and more burdensome for heirs than when a valid will is in place.