Spanish Wills and Inheritance Tax must be considered together, and legal and tax planning incorporated when a Spanish Will is drafted.
Whether you have a single Spanish Will or two Wills (one in England and one in Spain), you must consider your Inheritance Tax and legal position.
The EU Succession Regulation No. 650/2012 (also known as Brussels IV) has had an important effect on international Wills in Spain.
Over the years, Spanish advisers have recommended having a Spanish Will that covers Spanish property and assets, and a separate UK Will.
However, from an Inheritance Tax and legal perspective, the choice to apply English law must be considered together with the UK’s probate rules.
English citizens may specify that they want English law to apply to their Spanish assets, allowing them to avoid Spanish succession law and apply their English Will instead.
If a person decides that English law will apply to their Spanish Will, this must be clearly expressed.
Key points to remember:
Professional advice should therefore be sought from qualified legal and tax advisers in both countries to determine the best approach.
Although the estate may be distributed under English law, it remains subject to Spanish inheritance tax.
In some cases, it can even be more tax-efficient to apply Spanish law than English law.
For that reason, it is often recommended that:
The first point to consider is that Inheritance Tax is not included in the double tax treaty between the UK and Spain.
Therefore, when drafting a Will, the Spanish Inheritance and Gift Tax (ISD) must be considered alongside the UK’s inheritance tax rules.
Key facts about Spanish Inheritance and Gift Tax (ISD):
ISD is an acquisition tax, not a transfer tax like in the UK.
The beneficiaries (not the estate) are responsible for paying the tax.
Tax is payable on the inheritance or gift of any property in Spain.
Spanish residents and non-residents may be liable, depending on the assets.
Under Spanish law, children or other descendants are mandatory heirs (herederos forzosos), entitled to a fixed share (legítima) of the estate, regardless of the deceased’s wishes.
If there are no descendants, parents or ascendants become forced heirs. The surviving spouse is generally limited to one-third of the inheritance.
This system means that Spain does not recognise full testamentary freedom.
To avoid forced heirship and freely distribute your assets, it is essential to choose English law in your Spanish Will, as permitted by Brussels IV.
Without a Will, Spanish intestacy rules apply — meaning assets will automatically pass to the children or closest relatives, regardless of your intentions.
Legal & Tax Planning with Del Canto Chambers
At Del Canto Chambers, we provide integrated legal and tax advice for cross-border estates involving Spain and the UK.
Our team helps you:
We act for international clients who own property or investments in Spain, ensuring their estate planning is secure, compliant and tax-efficient.
If you own Spanish assets or are planning to invest, contact Del Canto Chambers today for expert advice on Spanish Wills and Inheritance Tax.