Inheritance in Spain for foreign clients: complete guide

EU Regulation 650/2012 sets the general rule: the law applicable to the succession is the law of the deceased's habitual residence at the time of death. A British or German retiree who had been living in Tenerife for ten years is, by default, governed by Spanish law.

The Regulation itself allows this rule to be overridden through professio iuris: the deceased can elect in their will the law of their nationality. A German with a property in Tenerife can keep German law applicable to their succession if they execute a Spanish will with that express choice. It is a strategic decision affecting the forced-share, the distribution and the tax outcome.

The Canary Islands maintain very significant reliefs in inheritance and gift tax. For heirs in groups I and II — descendants, ascendants and spouse — the regional rebate reaches 99.9% of the tax due, provided the formal requirements are met: on-time filing and correct valuation.

The filing period is six months from the date of death, extendable by another six on request. For non-resident heirs of assets situated in the Canary Islands, the 2014 CJEU judgment and subsequent reform allow the regional rebate to apply even where the heir lives outside the EU, on equal terms with residents.

When the deceased or the heir live in different EU countries, the European Certificate of Succession simplifies the procedure considerably: it certifies the status of heir in any Member State without further recognition. It is issued by the notary of the country whose law governs the succession.

In practice, we coordinate with the notary or solicitor in the deceased's country to obtain the equivalent grant of representation, the foreign will translated and apostilled, and the death and Last Wills certificates. For UK–Spain successions the process is different — the UK never joined Regulation 650/2012 — and we work with a network of English solicitors we know.