The management of an international inheritance, meaning a situation where the deceased, the heirs, or the assets are located in more than one country, involves significant legal complexity. Globalization, increased mobility, and ownership of assets abroad make this increasingly common, but they also increase the risk of errors that may result in higher tax costs, family disputes, or unnecessary procedural delays.
Which law governs international successions within the EU?
Since 17 August 2015, Regulation (EU) No 650/2012 on international successions has been in force. It:
Establishes clear rules on jurisdiction, applicable law, and the recognition and enforcement of decisions in succession matters within the EU.
Allows the issuance of the European Certificate of Succession, a document with cross-border effect that enables heirs to prove their status and entitlements before authorities and institutions (such as registrars, notaries, or banks).
Default applicable law
General rule: the applicable law is that of the country where the deceased had their habitual residence at the time of death, not the country where the assets are located nor their nationality. This introduces a uniform legal framework for the entire estate.
Choice of law (“professio iuris”)
The testator may expressly choose, in their will, the law of their nationality to govern the entirety of their succession. This choice is valid provided it is expressly stated in the testamentary document.
Manifestly closer connection
In exceptional cases, if it is demonstrated that the deceased was manifestly more closely connected with another country, that country's law may apply, even if it was not their habitual residence.
These rules aim to prevent each asset from being governed by the law of the country where it is located, which previously made cross-border successions significantly more complex.
Where is inheritance tax paid?
Regulation (EU) No 650/2012 does not regulate tax matters. Inheritance taxation is governed by the domestic tax laws of each country involved.
Spain
In Spain, transfers upon death are subject to Inheritance and Gift Tax (Impuesto sobre Sucesiones y Donaciones – ISD), regulated at both national and regional levels.
Spain provides for a foreign tax credit to mitigate international double taxation where no bilateral tax treaty applies.
Double taxation and tax treaties
Most double taxation treaties distinguish between immovable property (taxed in the country where it is located) and other assets or rights (which may be taxed in the deceased’s country of tax residence or as provided by the relevant treaty).
If no treaty exists, taxation may arise in more than one country, although Spain allows a deduction for taxes paid abroad.
In international estates, inadequate planning may result in tax liabilities in multiple jurisdictions.
Is a will executed abroad valid?
A foreign will may be fully valid in Spain or in other countries, provided it complies with the legal formalities of the country where it was executed and can be recognized under the applicable rules of the country where it must be enforced.
However, practical considerations may arise:
An official translation or apostille may be required.
Some countries apply forced heirship rules or mandatory shares that may differ from those contemplated in the original will.
For this reason, reviewing a foreign will with a local legal professional is highly advisable, particularly where real estate or business assets are located in Spain.
Assets in multiple countries: how is coordination achieved?
Jurisdiction and competence
The authority generally competent to handle the succession is that of the country where the deceased had their habitual residence at the time of death, unless jurisdiction has been validly chosen in a will or agreed upon by the heirs.
European Certificate of Succession
This certificate serves as valid proof in participating EU Member States of the heirs’ rights to the deceased’s assets, reducing the need for separate proceedings in each country.
How long can an international succession process take?
There is no fixed timeframe. The duration depends on factors such as:
The complexity of the estate.
Whether a will exists or heirs must be formally declared.
Coordination between different jurisdictions.
Tax procedures in more than one country.
Without professional legal advice, these processes may extend for months or even years, particularly if disputes arise regarding the applicable law or tax obligations.
Conclusions: the importance of proper planning
An international inheritance requires prior assessment of multiple legal and tax variables:
Determining the law governing the succession.
Ensuring the validity of foreign wills.
Analyzing tax obligations in each country.
Preparing documentation and certificates (such as the European Certificate of Succession).
Considering translation, legalization, or apostille requirements.
Early specialized legal advice is essential to minimize risks, avoid unnecessary double taxation, and ensure that assets are transferred in accordance with the deceased’s wishes and the applicable legal framework.