When a relative with assets in Spain dies and you live abroad, the estate turns into a race against the calendar governed by rules that hardly anyone knows in advance. This guide explains what has to be requested, in what order, which deadlines run from day one and what happens when the heirs are spread across several countries.
1. The clock that starts on day one
The deadline that matters is the tax one. Impuesto sobre Sucesiones (Spanish inheritance tax) must be settled within six months of the death. That period can be extended by a further six months, but only if the extension is applied for within the first five months. Once that point has passed, no extension is possible and surcharges and interest start to apply.
Acceptance of the estate itself is subject to no legal deadline. But until it has been accepted and the assets formally awarded, those assets remain in the deceased's name: they cannot be sold, mortgaged or safely let, and the money in the bank accounts cannot be drawn on.
2. The three certificates you start with
Every Spanish estate begins with the same three documents:
- Death certificate, issued by the Civil Registry.
- Certificate of last wills (certificado de últimas voluntades), which states whether the deceased made a will in Spain and before which notary. It can be applied for once fifteen working days have passed since the death.
- Certificate of death-cover insurance contracts, which reveals whether any life insurance was in place. It is requested at the same time as the previous one and often brings to light payouts the family knew nothing about.
With the certificate of last wills in hand, an authorised copy of the will is requested from the notary's office that holds it. That document governs everything: it says who inherits and in what proportion.
3. If there is no will
This is not an insurmountable problem, simply one more step. Where there is no Spanish will, a declaration of intestate heirs (acta de declaración de herederos abintestato) is processed before a notary, determining who the heirs are under the law: first descendants, then ascendants, then the spouse and lastly collateral relatives. The instrument requires two witnesses who know the family, together with documents evidencing the family relationship.
It is a step that adds a few weeks to the process. That is why, where there are assets in Spain, leaving a Spanish will in place saves time and money for those who come after.
4. Accepting and awarding are not the same
This distinction explains half of the problems that surface years later:
- Accepting means declaring that you take on the status of heir.
- Awarding means setting out in a public deed which specific asset each heir receives.
- Registering means taking that deed to the Land Registry so that the property is recorded in the name of whoever inherits it.
The usual course is to do all three in sequence. But it is common to come across estates where the tax was settled years ago and nothing was ever registered. The family believes the house is theirs, while at the Registry it still belongs to the deceased. The problem surfaces the day someone wants to sell.
5. How much Impuesto sobre Sucesiones is payable
There is no single answer, because the tax is devolved to the autonomous regions and each applies its own reliefs. Three factors determine it:
- The family relationship. Between parents and children, and between spouses, several regions relieve practically the whole of the tax. Between siblings, nephews and nieces, or unrelated persons, the bill rises sharply.
- The value of what is inherited, with the Cadastre reference value acting as the tax floor for real estate.
- The autonomous region with jurisdiction, which as a general rule is that of the deceased's habitual residence.
If you are not resident in Spain, you may apply the relevant regional rules instead of the state ones. This stems from a 2014 judgment of the Court of Justice of the European Union and from the later rulings that extended the same criterion to residents outside the European Union. Depending on the region, the difference can be worth many thousands of euros.
Apart from Impuesto sobre Sucesiones, if the estate includes urban real estate the plusvalía municipal (municipal capital gains tax) also falls due at the relevant town hall.
6. Heirs in several countries
This is the most common scenario where the family emigrated. The estate requires every heir to take part, and coordinating diaries, time zones and paperwork from four countries is, in practice, the slowest part.
Two rules worth knowing:
- Each heir needs their own NIE (foreigner's tax identification number) in order to settle taxes and register assets in Spain.
- Foreign documents provided usually require a Hague apostille and a sworn translation into Spanish.
If the deceased was a foreign national with assets in Spain, the European Succession Regulation 650/2012 comes into play. As a general rule it applies the law of the country of habitual residence, unless the deceased expressly chose the law of their nationality. Determining which law governs the estate is the first thing to settle, because it changes who inherits and how much.
7. If the estate carries debts
Accepting an estate outright means answering for the deceased's debts, even out of your own assets. There are two ways out:
- Acceptance under benefit of inventory: you accept, but liability is limited to the value of what is inherited. It is the prudent option where there may be loans or guarantees.
- Renunciation: you reject the estate in full. Be careful, because it is irrevocable: once signed there is no going back, even if assets come to light afterwards.
And one warning that saves a good deal of trouble: renouncing "in favour of" a particular person is not a renunciation but an acceptance followed by a gift, and it is taxed twice. A pure and simple renunciation is not taxed; one that names a beneficiary is.
8. Inheriting in order to sell
Many estates end in a sale: no one is going to use the flat and the heirs would rather share out the money. In that case the two transactions are linked together, usually on the same day and at the same notary's office: first the award of the estate, then the sale.
Here a tax point arises that is worth being clear about from the start: the gain on the sale is calculated as the difference between the value declared in the estate and the sale price. Declaring an artificially low value in order to pay less inheritance tax can prove expensive later, because it inflates the gain. The two transactions have to be looked at together, not one after the other.
Frequently asked questions
How long do I have to accept an estate in Spain?
Acceptance is subject to no legal deadline, but Impuesto sobre Sucesiones must be settled within six months of the death, extendable by a further six if applied for within the first five. Late settlement attracts surcharges.
Do I have to travel to Spain to accept the estate?
Not necessarily. There is the possibility of taking part remotely where this is legally available, and also the power of attorney route. What fits your case is decided by the notary's office after examining the estate.
What happens if one heir refuses to sign?
A notarial settlement of an estate requires everyone's agreement. Where there is none, the remaining options are the contador partidor (an estate divider), where the will provided for one, and judicial division, which is slower and more expensive.
Can I inherit if I do not have a NIE?
You will need to obtain one in order to settle the taxes and register the assets in your name. It can be applied for during the process.
Can the property be sold before the estate is accepted?
No. To sell, the property must be registered in the heirs' names. What is often done is to sign the award of the estate and the sale on the same day.
Which law applies if the deceased was a foreign national?
As a general rule, that of the country of their habitual residence, under European Regulation 650/2012, unless they expressly chose the law of their nationality in their will.
How long does an estate take in Spain?
Once the certificates and the will have been located, the deed is usually ready in two or three weeks. Settling the tax and registering at the Land Registry add a further one to two months.
At Notario.org we manage and coordinate Spanish estates with Spanish notary offices. We are not a notary's office: the instrument is authorised by, and is the responsibility of, a notary, an independent public official. If you would like to know where to start in your case, tell us about your situation and we will come back to you with a plan, the estimated taxes and a fixed quotation.
