Inheritance law in Spain is undergoing important transformations. Recent legislative reforms at the regional level and the application of European succession rules have introduced new challenges – and opportunities – for heirs, especially those with international ties or assets located in Spain.
For foreign individuals and families with cross-border estates, understanding these developments is essential to ensure proper planning, avoid unexpected tax burdens, and secure the efficient transfer of assets to the next generation.
1. Regional Differences in Inheritance Tax
Spain does not apply inheritance tax uniformly across the country. Each Autonomous Community establishes its own tax rates, allowances, and exemptions. This means that:
Madrid and Andalusia, for example, offer very favorable reductions for close relatives.
Other regions, such as Asturias or Valencia, apply stricter taxation, which can significantly increase the tax burden on heirs.
Non-resident heirs are often taxed under the national regime, which can be less advantageous unless specific EU or bilateral rules apply.
The location of the assets – and the residence of the heir – can drastically change the final tax liability.
2. Application of the European Succession Regulation
Since 2015, the European Succession Regulation (Regulation No. 650/2012) has harmonized many aspects of inheritance law across EU member states. Its impact on Spain is especially relevant for foreign heirs:
The general rule is that the law of the deceased’s habitual residence applies to the succession, even if the assets are located in another EU country.
Individuals, however, can choose the law of their nationality to govern their estate.
This choice can be decisive for expatriates or families with dual nationality, as it may allow them to avoid conflicts between legal systems.
3. Challenges for Families with Dual Nationality or Cross-Border Assets
Global mobility has made family structures more complex. It is increasingly common to find heirs who:
Hold dual or multiple nationalities.
Reside in one country but inherit assets in another.
Have family members scattered across different jurisdictions.
These situations raise critical issues:
Which country’s law governs the inheritance?
How are assets abroad valued and taxed?
What double taxation risks exist, and how can they be mitigated?
Without proper planning, heirs may face delays, litigation, and higher tax exposure.
Conclusion: The Importance of Legal Guidance
The recent reforms in Spanish inheritance law highlight the growing complexity of cross-border estate planning. For international heirs, what used to be a relatively straightforward process has become a field full of nuances, especially regarding tax liabilities and applicable law.
At Frühbeck Abogados, we advise international families, investors, and expatriates on:
Strategic inheritance and estate planning in Spain.
Minimizing inheritance tax through careful structuring.
Applying the European Succession Regulation effectively to protect heirs’ rights.
If you or your family own assets in Spain, early planning is key to ensuring a smooth and secure transfer of your estate.