Spanish Inheritance Law & Tax Guide 2025: What Foreigners Need to Know

If you own property in Spain or have inherited property in Spain, you're probably asking: "What are the inheritance laws in Spain?" or "How much is inheritance tax in Spain?" In this 2025 guide, we explain everything you need to know about Spanish inheritance law, tax implications, and key updates that specifically affect foreigners and non-residents.

Inheritance Law in Spain 2025: Understanding Forced Heirship

The inheritance law in Spain 2025 remains one of the strictest systems in Europe. Based on the "forced heirship" rule (herederos forzosos), certain family members—children, grandchildren, and parents—are legally entitled to a share of your estate, even if you have a will.

Your estate is divided into three parts:

• La legítima (mandatory portion): One-third of the estate must be divided equally among the children.

• Tercio de mejora (improvement portion): Another one-third also goes to the children, but you can choose who gets more.

• Libre disposición (freely disposable portion): The remaining third can go to anyone of your choosing.

This structure limits full testamentary freedom but ensures protection for close family members under Spanish law on inheritance.

How to Inherit Property in Spain Without a Will: Order of Succession

If you pass away without a will, Spanish inheritance law applies a strict order of succession:

1. Children and grandchildren

2. Parents and grandparents

3. Spouse

4. Siblings, nieces, and nephews

5. The state

This applies even to non-residents, and if no legal heirs exist, the Spanish government inherits the estate.

Inheritance Law for Foreigners in Spain: Key 2025 Updates

One of the most critical updates for expats involves new inheritance laws in Spain for foreigners. Under EU Regulation 650/2012, foreign property owners in Spain can opt to have their national inheritance laws applied—if clearly stated in a valid will.

If you don’t make this declaration, Spanish inheritance laws will apply automatically, including forced heirship. This can be a serious issue for non-residents from countries with full testamentary freedom, such as the UK or the US.

Inheritance Tax in Spain 2025: Rates, Groups, and Tax Exemptions

So, does Spain have an inheritance tax? Yes. The amount of inheritance tax in Spain for non-residents (and residents) depends on the heir’s relationship to the deceased.

Main tax groups:

• Group I: Children under 21 (highest exemptions)

• Group II: Adult children, grandchildren, spouse, parents

• Group III: Siblings, aunts/uncles, nieces/nephews

• Group IV: Distant relatives, non-family members

Key facts:

• Spouses do pay inheritance tax in Spain, although with certain allowances.

• Distant relatives or unrelated beneficiaries (like unmarried partners) face the highest tax rates—up to 34% in some regions.

• Most tax breaks benefit Group I and II heirs.

If you're wondering how much inheritance tax is in Spain, the answer depends greatly on the autonomous region and the relationship between the deceased and the heir.

To understand how this fits into broader tax obligations, check out our full guide to the Spanish tax system.

Legal Ways to Reduce Inheritance Tax in Spain

Completely avoiding tax is unlikely, but there are legal ways to reduce inheritance tax in Spain:

• Primary residence exemption: Spouses or children may receive a 95% discount on the family home.

• Personal exemptions: Tax-free thresholds vary by heir group and region.

• Regional benefits: Some regions like Madrid or Andalusia offer substantial tax reductions.

If you plan ahead, inheritance tax laws in Spain can work in your favor—especially when you reside or own property in a region with favorable tax rules.

Inheriting Property in Spain as a Non-Resident: Step-by-Step Guide

Inheriting property in Spain as a foreigner involves a specific process. Here’s what to do if you're a non-resident inheriting Spanish property:

1. Obtain an NIE number: You can't proceed without a foreigner tax ID.

2. Request a Last Will Certificate: Confirms if a will exists in Spain.

3. Notary declaration: Required if real estate is involved.

4. Pay inheritance tax: Within 6 months of the date of death.

5. Register the property: After paying tax, you can change ownership on the title deed.

For more information, see our step-by-step guide: How to complete title deed transactions in Spain.

Property Inheritance in Spain for Foreigners: Critical Planning Tips

Foreign property owners should take action early. If you want to prevent unnecessary legal or tax burdens on your heirs, you must:

• Write a will that clearly states your home country’s laws should apply.

• Estimate the future tax liability of your estate.

• Consider regional tax differences (Madrid, for example, is more tax-friendly).

Ignoring this could leave your loved ones dealing with unexpected costs and Spanish inheritance law non-residents weren’t prepared for.

Final Thoughts on Inheritance Tax and Property Law in Spain

Whether you're living in Spain or just own a holiday home, Spanish inheritance law is not something to take lightly. Even if you have a will, Spain's inheritance tax on property and strict legal structures can create significant issues for your heirs.

A properly drafted will today can protect your family from expensive and complex legal proceedings tomorrow. To safeguard your estate and minimize exposure under inheritance tax Spain 2025, seek professional guidance and plan early.

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