Estate planning in Spain is more complex than in many other European countries because of forced heirship rules, regional tax differences, and separate inheritance laws for non-residents.
Having a Spanish will and a clear cross-border plan reduces tax and prevents family disputes.
This article explores:
- How do Spanish wills work?
- Can a person draft their own will?
- How much does it cost to make a Spanish will?
- Who gets the inheritance if there is no will?
- What is Spanish inheritance law?
- What is estate planning and why is it important?
- Estate planning vs will
Key Takeaways:
- Spanish wills and estate planning are essential to avoid intestacy complications.
- Forced heirship applies, but home-country law can sometimes be elected.
- Inheritance tax rules vary by region.
- Estate planning goes beyond a will, covering taxes, trusts, and asset management.
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The information in this article is for general guidance only. It does not constitute financial, legal, or tax advice, and is not a recommendation or solicitation to invest. Some facts may have changed since the time of writing.
How do Wills work in Spain?
Spanish wills follow civil law with forced heirship, meaning certain heirs (children and spouse) must receive part of the estate.
A person can only freely dispose of one-third of their assets.
- Spain applies legítima or reserved portions unless foreign law is chosen.
- A will must be signed before a Spanish notary (or created abroad and registered).
- There are multiple will formats, but the notarial will is the most secure.
Spanish wills for non-residents
Non-residents can make a Spanish will for assets in Spain and usually choose their national law to avoid forced heirship.
Important considerations:
- Makes probate faster and cheaper for heirs.
- Only governs Spanish assets, such as property, bank accounts, investments.
- Prevents conflicts with your main will in the UK or elsewhere.
Can you write your own will in Spain?
Yes, but self-written wills in Spain are rarely recommended because they are harder to validate and can delay probate.
A handwritten or holographic will is legal but must meet strict rules.
Most expats use a notarial will to avoid administrative problems.
How much does a normal will cost?
A standard Spanish notarial will costs at least 150 euros. If you require translation services, legal advice, or additional documentation, the cost can increase.
Expats who choose to create dual wills—one in Spain and one in their home country—should expect higher fees.
The extra cost often pays off by reducing probate complications and ensuring your wishes are recognized in both jurisdictions.
Who inherits if there is no will in Spain?
If there is no will, Spain’s intestacy laws determine the distribution of assets according to the order of inheritance.
Children and other descendants inherit first, followed by the deceased’s parents, then the surviving spouse, and finally the deceased’s siblings.
If there are no living relatives, the estate passes to more distant family members or ultimately to the Spanish government.
Creating a Spanish will ensures that your assets are distributed according to your wishes and reduces administrative and tax burdens for your heirs.
New inheritance laws in Spain
Forced heirship remains, but expats can choose their home-country law under EU Regulation 650/2012.
Some regions have recently updated inheritance tax allowances and exemptions for close family members.
Foreign nationals must formally elect their national law in their Spanish will to benefit. If you don’t make this election, Spanish forced heirship rules will likely apply by default.
What is the nil rate band for inheritance tax in Spain?
Spain has no nationwide nil rate band like the UK IHT. Tax exemptions vary by region and by relationship to the deceased.
Children and spouses often get regional tax allowances of at least 16,000 euros. Non-relatives generally face higher taxes.
How to avoid inheritance tax in Spain for expats?
Expats can reduce IHT through careful tax planning and structuring of assets.
Key strategies include:
- Use regional allowances where available.
- Choose your home-country law for your Spanish will.
- Consider early gifts or life insurance.
- For Spanish properties, some regions provide favorable exemptions for spouses and children.
Can you avoid inheritance tax with a trust?
Traditional UK-style trusts are generally not recognized in Spain and may trigger extra taxes, so they do not avoid Spanish inheritance tax.
Expats often use alternative strategies like life assurance or structured gifts to mitigate taxes legally.
What is the maximum amount you can inherit without paying inheritance tax?
There is no fixed nationwide threshold. Maximum exemptions depend on the region and the heir’s relationship to the deceased.
Madrid allows up to 99% reduction for close relatives. Andalusia also offers significant exemptions for family heirs.
What is considered estate planning?
Estate planning is organizing your assets and financial affairs to manage taxation, succession, and inheritance efficiently.
Key components are:
- Wills
- Tax planning
- Asset structuring
- Powers of attorney
- Succession planning
What are the 7 steps in the estate planning process?
The seven estate planning steps are: asset audit, goal setting, choosing applicable law, tax planning, drafting wills, appointing executors, and regular reviews.
1. Take an inventory of assets and liabilities – List all property, bank accounts, investments, debts, and other assets to get a full picture of your estate.
2. Set clear goals – Decide how you want your assets to be distributed, which heirs you want to prioritise, and any charitable intentions.
3. Choose the applicable law – For expats, determine whether Spanish law or your home-country law will govern your estate to avoid conflicts and forced heirship issues.
4. Plan for taxes – Identify inheritance tax obligations and exemptions in Spain, and structure your estate to minimize liabilities where possible.
5. Draft legal documents – Prepare wills, powers of attorney, and other essential documents that clearly express your wishes and comply with Spanish law.
6. Appoint executors or trustees – Choose trusted individuals or professionals to manage your estate, carry out your wishes, and handle legal and financial matters.
7. Review and update regularly – Life events such as marriage, children, property purchases, or changes in law can affect your plan, so it’s important to review it periodically.
Do I need a Spanish will if I own a property in Spain?
Yes. A Spanish will is strongly recommended if you own property, as it speeds up probate and avoids legal conflicts.
Without it, heirs may face lengthy legal processes, and Spanish forced heirship rules could override your wishes.
A Spanish will also ensures that inheritance taxes are calculated correctly in the region where the property is located.
What happens to a property in Spain when the owner dies?
The property is transferred to heirs according to the will or Spanish intestacy law, with inheritance tax payable before transfer.
Probate must be completed through a Spanish notary, and any debts or obligations linked to the property must be settled first.
Having a valid will or estate plan can significantly speed up the process and reduce legal complications, especially for expats unfamiliar with Spanish procedures.
What is the difference between will and estate planning?
A will dictates who inherits your assets, while estate planning covers the broader strategy of managing, protecting, and transferring wealth efficiently. This applies not only in Spain but overall.
Estate planning includes tax planning, trusts, powers of attorney, insurance, and succession planning, not just the document that names beneficiaries.
A comprehensive estate plan ensures your assets are handled according to your wishes, minimizing taxes and avoiding disputes.
FAQs
Is a British will valid in Spain?
Yes, a British will is valid in Spain, but probate is slower and more expensive compared to having a Spanish will.
While Spanish courts will recognize foreign wills, they must be translated, notarized, and may need extra legal steps to be executed, which can cause higher administrative costs for heirs.
Many expats therefore opt for a Spanish will covering local assets to simplify the process.
What is the biggest mistake with wills?
The biggest mistake is not making a will or failing to update it after major life changes.
Without a will, your estate is distributed according to Spanish intestacy laws, which may not reflect your wishes.
Failing to update a will after events like marriage, divorce, children, or property purchases can create disputes, delays, and unintended tax consequences for your heirs.
Do you need a will if you have an estate plan?
Yes. A will is still necessary even if you have a broader estate plan.
While estate planning includes trusts, insurance, and tax planning, a will formally directs who inherits your assets and ensures your instructions are legally recognized in Spain.
Without a will, your estate plan may be incomplete, and certain assets could fall under intestacy rules.
What is the 5 or 5 rule in estate planning?
The 5 or 5 rule allows beneficiaries to withdraw the greater of $5,000 or 5% of trust assets per year without triggering adverse tax consequences.
This rule is often used in trusts to manage distributions and trim immediate tax liability.
While more common in UK/US-style trusts, understanding similar structures is useful for expats considering international estate planning.
It helps control how and when heirs receive assets while staying tax-efficient.
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