by Plaza Estates 
Owning property in Spain brings Spanish procedures and Spanish tax obligations into your estate. Those are separate questions from the law that decides who inherits, and the two are easily confused. This guide explains, in general terms, why many foreign owners make a Spanish will, how the law governing a succession is determined, and how Spanish inheritance tax works in Andalucía.
Why consider a Spanish will
A will made in your home country can, in principle, cover assets located in Spain, but in practice this often makes the process slower and more complex for your heirs. A Spanish will dealing specifically with your Spanish assets is not usually a legal requirement, but it is widely recommended by lawyers and notaries because it is drafted with Spanish procedure in mind, its existence is reported to Spain’s General Registry of Last Wills, and it is generally easier for a Spanish notary and the property registry to work with.
That registry does not hold the contents of a will. It records that a will exists, the place and date it was granted and the notary who authorised it, so that after a death the heirs can obtain a copy from that notary. It is one of the first documents anyone administering a Spanish estate will be asked for.
Having both a Spanish will for Spanish assets and a will in your country of origin for the rest of your estate is a common approach, but the two documents need to be drafted so they do not accidentally revoke or contradict one another — which is the main reason this is coordinated between lawyers in both jurisdictions rather than handled document by document.
Choosing the law that governs your succession
Under the EU Succession Regulation, the law governing a succession is generally the law of the country in which the deceased was habitually resident at the time of death. However, a person may expressly choose the law of a country whose nationality they hold. This is commonly known as a professio iuris. The choice normally applies to the succession as a whole, not only to property located in Spain, and can affect who inherits, reserved shares and the powers and liabilities of heirs. It does not determine the inheritance tax payable, since taxation falls outside the scope of the Regulation.
The choice has to be made expressly, in a will or other disposition of property upon death. Because Spain applies the Regulation universally — the law it designates applies whether or not it is the law of an EU member state — nationals of countries outside the EU, including the United Kingdom, may in practice also be able to make this choice. Whether it is available, and whether it is advisable, depends on the nationality held, on the succession law of the country concerned and, for states with more than one legal system, on which of those systems would apply. This is a decision to take with a lawyer who understands both legal systems, not one to settle from general guidance.
How Spanish inheritance tax works
Spain’s inheritance and gift tax, generally known by its Spanish acronym ISD, is paid by each heir or legatee individually on what that person receives. It is not a tax on the estate as a single entity, which is a meaningful difference from the way estates are taxed in some other countries, and it means two people inheriting from the same person can face very different outcomes.
The tax is largely administered by Spain’s autonomous communities, and the regional element is what usually matters most. In Andalucía, as at 2026, a bonificación of the order of 99% applies to the tax due by taxpayers in Groups I and II — broadly spouses, descendants and ascendants — with the result that inheritance tax for close family is frequently very small in practice. Additional reductions for close relatives also exist alongside it. Eligibility and the final calculation must still be verified, and an inheritance tax return may remain compulsory even where little or no tax is ultimately payable.
Two practical points shape the paperwork. Real estate is valued for the tax by reference to the cadastral valor de referencia, which generally operates as a minimum taxable base unless the value declared is higher. And the return must be filed within six months of the date of death; a single extension of the same length can be requested within the first five months, generally with late-payment interest running from the end of the original period.
Residents, non-residents and which rules apply
Where the tax is not ceded to an autonomous community — typically where the deceased was not resident in Spain — it is administered by the Oficina Nacional de Gestión Tributaria of the AEAT rather than by a regional office. That is an administrative difference, not automatically a worse outcome: residents of the EU and the EEA and residents of third countries alike may apply the rules of the autonomous community indicated by the relevant connection points. Which region that is, and how the connection points fall in a particular estate, is exactly the sort of question to put to an adviser experienced in cross-border successions.
Plusvalía municipal: the second tax on an inherited property
Inheriting urban land can also trigger the plusvalía municipal (IIVTNU), which is separate from the ISD and is declared to the town hall under its own municipal ordinance. For transmissions on death the period is six months from the date of death, extendable up to one year at the taxpayer’s request. Because it is a municipal tax with its own procedure and its own calendar, it is the obligation heirs most often overlook while concentrating on the inheritance tax return.
| Concept | What it involves in practice |
|---|---|
| Spanish will | Deals specifically with Spanish assets; its existence, date and authorising notary are reported to the General Registry of Last Wills; commonly held alongside a home-country will, drafted so the two do not contradict each other |
| Governing law | By default the law of the deceased’s habitual residence; a person may expressly choose the law of a nationality they hold (professio iuris), applying to the succession as a whole — but not to the tax |
| Inheritance tax (ISD) | Paid by each heir or legatee on what they individually receive, not by the estate as a single entity; state framework with substantial regional variation |
| Andalucía | A bonificación of the order of 99% applies to Groups I and II (broadly spouses, descendants and ascendants), so tax for close family is frequently very small; eligibility and the final calculation still need checking |
| Filing authority | The autonomous community indicated by the connection points; where the tax is not ceded to a region, the Oficina Nacional de Gestión Tributaria (AEAT) |
| Declaration period | Six months from the date of death; one extension of the same length may be requested within the first five months, generally with late-payment interest |
| Property valuation | For real estate the cadastral valor de referencia generally operates as a minimum taxable base, unless the declared value is higher |
| Municipal tax | Inheriting urban land can trigger the plusvalía municipal (IIVTNU), declared to the town hall, six months from death and extendable up to one year on request |
Making a Spanish will: pros and cons
Advantages
- Generally speeds up administration of Spanish assets for your heirs
- Drafted in a form Spanish notaries and registries are familiar with
- Can carry a professio iuris choice where that choice is available
- Reduces the risk of translation or interpretation issues at a difficult time
Considerations
- Must be carefully coordinated with any existing home-country will
- Deals with who inherits, not with the tax the heirs will pay
- Rules and allowances change and depend on personal circumstances
- May require coordinated advice in more than one jurisdiction
Practical steps for property owners
A practical time to address succession planning is during or shortly after the purchase, when a notary and legal representation are already engaged and the title details are fresh. The questions usually worth raising at that point are whether a Spanish will is appropriate, whether a professio iuris choice should be made and how it should be worded, and how the property would be treated for inheritance tax purposes given the owner’s residency and family situation. A will can of course be revisited later as circumstances change.
Plaza Estates does not provide legal or tax advice. As part of guiding clients through a purchase on the Costa del Sol and Costa Tropical, we can put buyers in contact with independent lawyers and tax advisers who deal with Spanish wills, cross-border succession and inheritance tax in the detail an individual case requires.
Frequently asked questions
Do I need a Spanish will if I already have one at home?
Not strictly, in most cases, but it is generally recommended. A Spanish will dealing specifically with your Spanish assets typically makes the process smoother for your heirs and is drafted with Spanish notarial and registry practice in mind. It should be coordinated carefully with any existing will so that neither document revokes or contradicts the other.
Can I choose which country’s law applies to my estate?
The default is the law of the country where you are habitually resident when you die. You may instead expressly choose the law of a country whose nationality you hold, a choice known as a professio iuris, and it applies to your succession as a whole rather than only to your Spanish property. It does not change the inheritance tax payable, which is governed separately.
Is inheritance tax the same across all of Spain?
No. Inheritance and gift tax is largely administered by each autonomous community, and the regional rules usually make the biggest difference. In Andalucía a bonificación of the order of 99% applies to Groups I and II — broadly spouses, descendants and ascendants — so the tax for close family is frequently very small, although eligibility and the final figure still have to be checked case by case.
Are non-residents treated worse than residents?
Not as a rule. Where the tax is not ceded to an autonomous community it is handled by the Oficina Nacional de Gestión Tributaria rather than a regional office, which changes the administrative route. Residents of the EU and the EEA and residents of third countries alike may apply the regional rules indicated by the applicable connection points.
How long do my heirs have to deal with the paperwork?
The inheritance tax return is due within six months of the date of death, and a single extension of the same length can be requested within the first five months, generally with late-payment interest. If urban land is involved, the plusvalía municipal is declared separately to the town hall, with six months from death that can be extended up to one year on request.
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