Inheriting property in Spain as a foreigner means navigating six different bureaucracies in two languages, with hard deadlines and big tax consequences. This guide walks through every step, from receiving the news to having the property registered in your name (or sold), with realistic timelines and costs.
Step-by-step process
1. Death certificate
The first document. Issued by the Civil Registry (Registro Civil) in Spain if death occurred here, or by the foreign authority + apostille + sworn translation if abroad. Without this, nothing else can move.
2. Last Wills Certificate (15 working days after death)
File Modelo 790 with the Spanish Ministry of Justice. The certificate states whether the deceased left a Spanish will and, if so, before which notary. Cost: ~€10. Time: 5-10 working days.
3. Obtain the will
If a Spanish will exists, the named notary issues a copy (an “authorized copy”) for the heirs. If no Spanish will, you may need to invoke the foreign will under EU Regulation 650/2012. If no will at all, intestate succession rules apply.
4. Identify the heirs
Under Spanish law (or your national law if professio iuris was elected), determine who the heirs are and in what proportions. For multiple heirs, you proceed jointly.
5. NIE for each heir
Every heir — resident or not — needs a Spanish NIE (foreigner’s ID number). Required to pay tax, sign the deed, and register the property. Time: 1-3 weeks. Cost: ~€10 per NIE.
6. Property due diligence
Before signing anything, audit the property:
- Land Registry note (Nota Simple) — confirms ownership, debts, encumbrances, mortgages.
- Cadastral data — confirms the property’s official description and assessed value.
- IBI (council tax) status — pending payments are part of the estate’s debts.
- Community fees — request certificate from the community administrator showing arrears.
- Utility bills — water, electricity, gas, internet — pending amounts.
- Undeclared works — if there are extensions, pools or buildings not in the registry, regularize before transfer.
7. Inventory and valuation
Assemble the inventory: properties, vehicles, bank accounts, investments, life insurance, art, jewellery. Each is valued at fair market value as of the date of death. Properties: the Junta de Andalucía’s “valor de referencia” (since 2022) sets a tax-floor minimum value. Banks: certificate of balances at date of death.
8. Spanish Inheritance Tax (Modelo 650) — 6 month deadline
File before the autonomous tax authority where the deceased had habitual residence (or where the property is located, for non-residents). For Andalucía: Agencia Tributaria de Andalucía. Apply all reductions: kinship, main home (95%, up to €1M), family business (95%), life insurance, and the regional bonification (99% in Andalucía for direct family).
9. Plusvalía Municipal — 6 month deadline
File at the town hall where the property is located. Choose between objective method (cadastral × coefficient) and real method (declared gain). Pick the lower. For older properties bought decades ago, the real method can be much lower. Reduction of 95% for transfers to spouse or descendants who lived there.
10. Inheritance deed before a Spanish notary
The “Escritura de Aceptación y Adjudicación de Herencia”. Signed by all heirs (or by lawyers with power of attorney). The notary records the transfer of ownership, the partition (who gets what), and the acceptance of the inheritance. Notary fees: typically €600-€1,500 depending on the deed’s value.
11. Property registration (60 days from deed)
The deed is filed at the relevant Land Registry. Registration fees: typically €200-€600 depending on value. Once registered, the property is officially yours.
12. Bank accounts and other assets
Notify the banks. Each bank has its own internal process (form, certified copies, declarations). Funds are transferred to your account or to a Spanish account in your name. For brokers and life insurance, similar process.
13. Vehicle transfer (if applicable)
Spanish-registered vehicles need a transfer at the Jefatura de Tráfico. Cost: ~€55 per vehicle.
14. Decision on the property: keep, rent or sell?
Once the property is yours, you can:
- Keep it for personal use or holiday home.
- Rent it — long-term residential or short-term tourist (the latter requires a VFT licence in Andalucía, transferred from the deceased’s licence if any).
- Sell it — taxable gain in Spain (non-residents pay 19% IRPF on the gain) and potentially in your home country.
Total cost — typical example
Apartment in Costa del Sol valued at €350,000, single heir from UK, Group II:
- Spanish Inheritance Tax (with 99% Andalucía bonification): ~€500
- Plusvalía Municipal: ~€1,200 (real method)
- Notary fees: ~€700
- Land Registry: ~€350
- NIE, certificates, sworn translations: ~€300
- Professional fees (lawyer): ~€2,800
- Total: ~€5,850 for a €350,000 inheritance.
Timeline
| Phase | Time |
|---|---|
| Documents (death cert, Last Wills, will, NIE) | 2-6 weeks |
| Due diligence and valuations | 1-2 weeks |
| Tax filing (Inheritance Tax + Plusvalía) | Within 6 months from death |
| Notary deed signing | 1 week after tax payment |
| Land Registry | 2-4 weeks after deed |
| Bank transfers | 2-4 weeks after deed |
| Total typical timeline | 3-6 months for clean cases |
| With foreign probate | +3-6 months |
| With litigation | +12-24 months |
Common mistakes to avoid
- Missing the 6-month deadline. Penalties of 5%-20% on the tax + interest. The most common and most expensive mistake.
- Not claiming regional bonifications. If you don’t ask for it, you don’t get it. Each region has its own rules and forms.
- Underdeclaring the value below the “valor de referencia”. Triggers an automatic re-assessment by the tax authority.
- Selling before registering. The property must be registered in the heir’s name before sale, or the buyer’s title is uncertain.
- Ignoring undeclared works. Discovered later, they reduce the sale price and may require regularization at higher cost.
- Forgetting Modelo 720 (foreign assets) if you become a Spanish tax resident. If you keep the property and move to Spain later, this is a separate ongoing obligation.
Selling the inherited property
If you decide to sell, key tax considerations:
- IRPF non-residents (19% gain). Difference between the value declared at inheritance and the sale price = taxable gain. Filed via Modelo 210.
- 3% retention. The buyer must withhold 3% of the sale price and pay it to the Spanish tax authority. You then file Modelo 210 to settle the actual tax due (often less than 3%, in which case you get a refund).
- Plusvalía Municipal again. Yes, you pay it again on the sale (it’s a tax on each transfer). Same dual calculation method.
- Foreign tax obligations. The gain may also be taxable in your home country, subject to double taxation treaty provisions.
Frequently asked questions
Can I sell the inherited property without registering it first?
No. The property must be in the heir’s name in the Land Registry before it can be sold (the buyer needs a clean title). Skipping the registration is not legally possible.
What if multiple heirs disagree on what to do?
If unanimous agreement is impossible: 1) extinción del condominio (one heir buys out the others, paying ITP on their share); 2) judicial partition (court orders sale and distribution); 3) sale to a third party with proceeds split. Mediation often resolves these without court.
Do I have to declare the inheritance in my home country?
Depends on the country. UK: inheritance from a deceased’s estate is not generally taxable to the heir in the UK (UK Inheritance Tax falls on the estate of the deceased). USA: similar — federal estate tax falls on the estate, not the heir. Most EU countries: depends. We coordinate with your home-country advisor.
Can I rent the property as a holiday let after inheriting?
Yes, but in Andalucía you need a VFT (vivienda con fines turísticos) registration. If the deceased had a VFT, we transfer it to your name. If not, you can apply for a new one.
What if the deceased’s spouse is still alive — does the spouse inherit everything?
Depends on which national law applies (EU Regulation 650/2012). Under Spanish law, the spouse has lifetime usufruct over part of the estate, and children inherit the rest in ownership. Under UK law (if elected), the will determines distribution and the spouse may inherit everything.
What if I want to refuse (renounce) the inheritance?
Renouncement is done before a notary in Spain (or before a Spanish consulate if you’re abroad). It is irrevocable. Consider: if you renounce, your share goes to the next heir in line; this does not eliminate the tax — the next heir pays it.
Free consultation
Call +34 900 525 939 or use our contact form. First consultation free, in English. Office in Fuengirola, service across Spain.
Read the full guide: Inheritance in Spain for non-residents →