If you own a home on the Costa Blanca, Costa Cálida, Costa del Sol or Costa Almería, your Spanish property will be governed by Spanish inheritance and succession rules when you die — no matter where in the world you live. The good news for foreign owners is that inheritance tax (Impuesto sobre Sucesiones y Donaciones, or ISD) is set by each autonomous community, and in all four of our coastal regions the tax on close family has been slashed almost to zero in recent years. The bad news is that Spain does not treat a foreign will the way you might expect, and getting the paperwork wrong can leave your heirs facing months of delays and avoidable cost.
The two things every owner needs to sort out are: (1) which country's law decides who inherits your Spanish property — you can choose this — and (2) who pays inheritance tax and how much, which depends on the region and the relationship between you and your heir. This guide sets out the practical figures and steps for the Valencian Community (Costa Blanca), Murcia (Costa Cálida) and Andalucía (Costa del Sol and Costa Almería) so you can plan properly.
Spain has a system of forced heirship (legítima): by default a large share of an estate must pass to children and other close relatives, regardless of what a will says. For many British, Irish, Dutch, Scandinavian and other buyers this conflicts with the freedom they enjoy at home to leave everything to a spouse.
Since 2015 the EU Succession Regulation (Brussels IV) lets you choose the law of your nationality to govern your whole estate instead of Spanish law. So a British owner can elect English law, a German owner German law, and so on. This election is made in a will and it decides who inherits — it does not change which country taxes the estate. Spanish inheritance tax still applies to Spanish assets whatever law you choose.
Even though the UK, Ireland and Denmark opted out of the Regulation, their nationals can still benefit in practice because Spain applies the rules universally. This is exactly why making a Spanish will with a nationality-choice clause is the single most useful step most foreign owners take.
You are not legally obliged to have one, but it is strongly recommended. A Spanish will covering only your Spanish assets:
Using an independent Spanish property lawyer to draft the will is money well spent — a mismatch between your English and Spanish wills is one of the most common and expensive errors we see.
| Factor | Relying on a foreign will | Making a Spanish will |
|---|---|---|
| Speed of settlement | Slow — needs translation, apostille, legal recognition | Fast — found via Spanish registry |
| Cost to heirs | Higher (legalisation, extra legal fees) | Lower |
| Choice of national law | Possible but must be proven | Stated clearly in the deed |
| Typical cost to make | — | Roughly €150–€600 with a lawyer + notary |
Inheritance tax (ISD) is paid by the person who inherits, not by the estate, and it must be settled within six months of death (an extension can be requested). The national scale runs from roughly 7.65% up to 34%, but each autonomous community applies its own allowances and reductions — and in our four regions these are extremely generous for close family.
The key concept is the heir group:
The Valencian Community offers a 99% reduction on the ISD payable for Group I and Group II heirs (children, spouse, parents). In practice, a spouse or child inheriting a coastal home here pays only about 1% of what the standard scale would demand — often a token amount. There is also a substantial state allowance before tax is calculated. Groups III and IV receive far less relief and can face significant bills.
Murcia also applies a 99% reduction for Group I and II heirs on inheritances, so a surviving spouse or children inheriting a villa near Mar Menor or Mazarrón pay very little. As with everywhere, more distant relatives and unrelated heirs are taxed far more heavily.
Andalucía has some of Spain's most favourable rules: a 99% reduction for Group I and II, plus a large tax-free allowance (around €1,000,000 per heir for close family). For the vast majority of couples and families inheriting a property in Marbella, Estepona, Almería or Mojácar, the resulting inheritance tax is minimal or nil.
| Region | Autonomous community | Relief for spouse/children | Practical outcome |
|---|---|---|---|
| Costa Blanca | Valencian Community | 99% reduction on tax due | Usually a token amount |
| Costa Cálida | Murcia | 99% reduction on tax due | Usually a token amount |
| Costa del Sol | Andalucía | 99% reduction + ~€1M allowance | Often nil or minimal |
| Costa Almería | Andalucía | 99% reduction + ~€1M allowance | Often nil or minimal |
Important caveat: these headline reliefs apply to close family. If you plan to leave property to a partner you are not married to, to friends, stepchildren without adoption, or to nieces and nephews, the tax can be very different — and this is where early planning matters most.
Just as with the purchase taxes covered in our complete guide to taxes when buying, ISD is generally calculated on the higher of the market value or the cadastral valor de referencia — the reference value the tax authorities assign to each property. Heirs cannot simply declare an artificially low figure. Knowing the reference value of your home in advance helps you estimate any liability accurately, and it is the same benchmark used for the plusvalía municipal that heirs may also owe to the town hall on the land's increase in value.
A landmark change means non-resident heirs — for example, children living in the UK, Germany or the USA inheriting a Costa del Sol apartment — are now entitled to the same regional reductions as residents. Before 2015, non-residents were forced onto the harsher state scale; that discrimination was struck down by the European Court of Justice and Spain later extended equal treatment to residents of non-EU countries too. So an American or British heir today can benefit from the generous Valencian, Murcian or Andalusian reliefs.
Non-resident heirs still file with the national tax agency rather than the regional office, and each will need a Spanish NIE number to complete the process. American owners should also read our dedicated guide for US buyers, as US worldwide taxation adds a further layer.
Understanding local customs around bereavement also helps grieving families abroad; our overview of the Spanish funeral system is a useful companion read.
Beyond simply making a will, consider these approaches — always with professional advice:
If you are buying with the next generation in mind, the way you finance and structure the deal matters too — see our guides to financing property as a foreigner and buying as a non-resident.
If you are a spouse, child, parent or other close relative (Group I or II), Andalucía applies a 99% reduction plus a tax-free allowance of around €1 million per heir, so most family inheritances on the Costa del Sol or Costa Almería result in little or no tax. Distant relatives and unrelated heirs pay considerably more.
Both are very favourable for close family. The Valencian Community (Costa Blanca) and Murcia (Costa Cálida) both give a 99% reduction on tax due, while Andalucía (Costa del Sol and Almería) gives a 99% reduction plus a large fixed allowance. For most spouses and children the practical bill is minimal in all four regions.
Under Spanish forced heirship a fixed share would normally go to children. However, by making a Spanish will that elects the law of your nationality under the EU Succession Regulation, you can usually distribute your estate freely — for example, everything to your spouse. Take legal advice to word this correctly.
It can, but it is slow and expensive to enforce in Spain because it must be translated, apostilled and legally recognised. A separate Spanish will covering only your Spanish assets is far more efficient and works alongside your home-country will if drafted carefully.
ISD must be settled within six months of the date of death, though a further six-month extension can be requested. Missing the deadline can lead to surcharges and interest, so heirs should start the process promptly.
No longer. Since EU case law and subsequent reforms, non-resident heirs — including those living outside the EU, such as in the UK or USA — are entitled to the same regional reductions as residents. Each heir needs an NIE and files with the national tax agency.
Succession planning is far easier — and cheaper — when it is arranged at the point of purchase rather than after a bereavement. Whether you are buying your first home on the Costa Blanca, a villa on the Costa Cálida, or a retirement base on the Costa del Sol or Costa Almería, the Mediter Real Estate team can connect you with trusted independent lawyers and notaries to structure ownership and wills correctly from day one. Contact Mediter Real Estate today to discuss buying property in our four coastal regions with your family's future firmly in mind.
We use what you tell us here only to answer you. Privacy
