Inheritance in Spain: Danish or Spanish Law? A Complete Guide
If you own property in Spain as a foreigner, understanding inheritance law is crucial. The EU Succession Regulation has fundamentally changed the rules since 2015, giving you unprecedented control over what happens to your assets after death.
This guide explains your options, the key differences between legal systems, and how to ensure your wishes are honored.
The EU Succession Regulation: A Game-Changer
Since August 2015, the EU Succession Regulation (No. 650/2012) has unified inheritance rules across most EU member states. This regulation is especially important for anyone owning property in a country other than their home nation.
Key Principles:
| Aspect | Rule | |--------|------| | Default Law | Law of country where deceased had habitual residence | | Choice of Law | You can choose the law of your nationality | | Scope | Applies to entire estate, regardless of asset location | | Validity | Choice must be explicit in a will |
💡 Important: Without an explicit choice, Spanish law applies if you die while habitually resident in Spain—even if you're not a Spanish citizen.
Why Law Choice Matters: Comparing Legal Systems
Spanish Inheritance Law
Spanish succession law includes strict forced heirship rules (legítima) that limit your freedom to distribute assets:
| Heirs | Minimum Share | |-------|---------------| | Children | 2/3 of estate (divided among all children) | | Spouse | Usufruct only (lifetime use, not ownership) | | Parents | 1/2 of estate (if no children) | | Free Portion | Only 1/3 can be freely distributed |
Key Limitations:
- Children cannot be disinherited except in extreme circumstances
- Spouse receives only usufruct, not outright ownership
- Cohabitating partners have no automatic inheritance rights
- Regional variations exist (Catalonia, Basque Country, etc.)
Common Law Systems (UK, USA, etc.)
Countries following common law tradition generally allow:
- Testamentary freedom: You can leave assets to anyone
- Spouse protection: Varies by jurisdiction
- No forced heirship: Children have no automatic right to inherit
Danish/Nordic Inheritance Law
Danish and Nordic inheritance law offers:
- Greater flexibility than Spanish law
- Spouse priority: Surviving spouse inherits before children
- Limited forced heirship: Children have rights but less restrictive
- Cohabitation recognition: Legal provisions for unmarried partners
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Why Choose Your Home Country's Law?
For most foreigners with Spanish property, choosing their nationality's law offers significant advantages:
Advantages:
✅ Greater freedom - Distribute assets as you wish ✅ Protect your spouse - Ensure they inherit outright, not just usufruct ✅ Familiar rules - Work with a system you understand ✅ Avoid forced heirship - No mandatory division among children ✅ Recognize cohabitants - Protect unmarried partners
Disadvantages:
❌ Requires action - You must explicitly choose in a will ❌ Complexity - Spanish authorities must apply foreign law ❌ Local advisors - Not all Spanish lawyers understand foreign inheritance rules ❌ Communication - Must be properly documented for Spanish authorities
How to Make a Law Choice
1. Create a Valid Will
Your will must contain a clear choice of law clause. Example wording:
"I choose that the law of [your nationality] shall apply to my entire succession in accordance with EU Regulation No. 650/2012."
2. Consider Separate Wills
Many property owners opt for:
- Home country will - For assets in your country of nationality
- Spanish will - Specifically for Spanish property
Critical: Both wills must:
- Reference each other
- Contain the same law choice
- Not revoke each other
3. Register Your Spanish Will
Spanish wills can be registered in the Central Will Registry (Registro General de Actos de Última Voluntad). Benefits:
- Easy for heirs to locate
- Protection against loss
- Faster probate process
Spanish Inheritance Tax: Still Applies
Important: Choosing foreign succession law does NOT exempt you from Spanish inheritance tax. Spanish property is always taxed in Spain.
Regional Tax Variations:
| Region | Reduction for Spouse/Children | Notes | |--------|-------------------------------|-------| | Madrid | 99% | Near-zero effective tax | | Valencia | 99% | Reformed 2023 | | Andalusia | 99% | For estates under €1M | | Catalonia | 20-50% | Less generous | | Balearic Islands | Variable | Currently being reformed |
Tax Calculation Factors:
- Property value at time of death
- Relationship to deceased (spouse, child, sibling, etc.)
- Regional rules where property is located
Rate Examples (Without Regional Benefits):
| Estate Value | Approximate Tax Rate | |--------------|---------------------| | Up to €8,000 | 7.65% | | €8,000 - €16,000 | 8.50% | | €16,000 - €80,000 | 9.35% - 15.30% | | €80,000 - €400,000 | 17.00% - 25.50% | | Over €800,000 | Up to 34% |
⚠️ Note: These are base rates. Actual tax depends heavily on regional benefits and relationship to deceased.
Special Situations
International Couples
When spouses have different nationalities:
- Each spouse can choose their own nationality's law
- Consider joint wills with coordinated law choices
- Be aware of matrimonial property regimes
Children from Previous Relationships
Foreign law choice can be beneficial when:
- You want to prioritize your current spouse
- Avoid Spanish forced heirship for children
- Create more flexible distribution arrangements
Unmarried Partners
Spanish law does not recognize unmarried partners as heirs. Under foreign law, you may be able to:
- Leave property to your partner directly
- Apply domestic partnership rules
- Avoid intestacy issues
Probate Timeline in Spain
When a death occurs affecting Spanish property:
6 Months:
- Inheritance tax deadline (can be extended by 6 more months)
- Interest applies for late payment
- Application required for extension
1 Year (Recommended):
- Complete property transfer to heirs
- Register new ownership at Land Registry
- Avoid additional complications
Required Documents:
| Document | Purpose | Where to Obtain | |----------|---------|-----------------| | Death certificate | Proves death | Civil registry (both countries) | | Will | Shows succession wishes | Central Will Registry + notary | | Inheritance acceptance deed | Formalizes transfer | Spanish notary | | NIE numbers | Tax identification for heirs | Spanish police/consulate | | Property documentation | Identifies assets | Land Registry |
Practical Recommendations
1. Make a Will
Even if your home country's intestacy rules are acceptable, a will:
- Clarifies your law choice
- Speeds up probate
- Reduces disputes
2. Inform Your Heirs
Ensure your heirs know:
- Where your will is located
- That you chose foreign law
- Contact details for your Spanish lawyer
3. Consider Regional Tax Implications
When purchasing property, the region's inheritance tax rules should factor into your decision.
4. Get Professional Advice
Inheritance law is complex. Consult:
- A lawyer in your home country familiar with international succession
- A Spanish lawyer experienced with EU succession regulation
- A tax advisor in both countries
Frequently Asked Questions
Do I need a Spanish will?
It's not mandatory but highly recommended. A Spanish will makes probate faster and easier. It doesn't replace your home country will—both work together.
Can I change my law choice later?
Yes. You can revoke or modify your choice by making a new will at any time.
What if I don't make a law choice?
Without explicit choice, the law of your habitual residence at death applies. If that's Spain, Spanish forced heirship rules apply.
How does this affect my children's inheritance?
With foreign law choice, you may be able to distribute assets more flexibly than under Spanish law, which reserves 2/3 of the estate for children.
Conclusion
The EU Succession Regulation gives you powerful control over your estate planning. For most foreigners with Spanish property, choosing their nationality's law offers:
- Greater flexibility in asset distribution
- Better protection for spouses and partners
- Freedom from Spanish forced heirship rules
- Familiar legal framework to work within
However, this choice requires:
- A valid will with explicit law choice
- Understanding of tax implications (Spanish tax still applies)
- Proper documentation for Spanish authorities
- Professional legal advice in both jurisdictions
Need help with inheritance planning for your Spanish property? Contact me for a consultation. I help foreign property owners navigate Spanish succession law and create comprehensive estate plans.
