Why inheritance planning matters for foreign owners
Foreign owners of Spanish property must address Spanish inheritance tax (ISD) regardless of country of residence. Failure to plan creates a six-month tax filing deadline post-death (extendable +6 months on request), risks of penalties, and often forces heirs to sell the property to pay the tax. Proper planning eliminates these risks.
EU Succession Regulation 650/2012
The EU Succession Regulation allows you to elect your home country law to govern your Spanish estate. This is critical because Spanish forced heirship rules (legítima) reserve large portions of the estate for direct descendants. Many international owners prefer UK, Dutch or German law where testamentary freedom is greater. The election must be made in a Spanish will (testamento) explicitly.
Valencia regional ISD reductions
The Valencia region applies a 99% reduction on the inheritance tax base for direct family (spouse, children, parents) up to significant thresholds, making Costa Blanca one of the most favourable Spanish regions for inheritance compared to Catalonia or Asturias. Specific calculation depends on relationship, age of beneficiary, value of estate and pre-existing assets.
Spanish will drafting
We draft a Spanish will (testamento abierto notarial) coordinated with your home-country will so there is no conflict. The Spanish will covers Spanish assets only. Probate is simplified massively versus relying on a foreign will alone. Cost: typically €150–€300 at a Spanish notary.
Probate and tax filing post-death
When death occurs, our team prepares the inheritance file: death certificate, last will from Spain (Registro de Últimas Voluntades), property valuation, ISD calculation, transfer documentation. We file with the regional tax office and the Land Registry. Total timeline typically 4–8 months from instruction to fully settled estate.