Inheriting a property in Spain when you live abroad: taxes and steps

When a parent or relative who owned a flat in Spain dies, the family usually has to deal with two legal systems at once: the succession rules and taxes of the country where they lived, and the Spanish formalities attached to the property itself. Spain taxes the transfer of a home located on its territory, whatever the nationality of the heirs and wherever the deceased lived.

The figures can differ enormously from one family to another, so this guide focuses on the sequence of steps and the points where non-resident heirs commonly go wrong. It is orientation, not personal advice: inheritance is the area where a qualified adviser earns their fee.

The three Spanish obligations at a glance

Obligation	Who	When	Form
Spanish inheritance tax (impuesto sobre sucesiones)	Each heir, on what they receive	Within 6 months of the death	Modelo 650
Identification number	Each heir	Before any filing	NIE
Yearly non-resident income tax on the home	Each heir, for their share	Every year while the home is kept	Modelo 210

On top of these, the municipal plusvalía (IIVTNU) can be triggered by an inheritance, as it is by a sale. When the property passes on death, it is generally the heir who pays it. Ask the town hall how and when it must be declared, as municipalities set their own procedures.

Spanish inheritance tax (Modelo 650)

Each heir is a separate taxpayer. The tax is calculated on the share each one receives, not on the estate as a whole, and it is filed on Modelo 650. The normal deadline is six months from the date of death.

Regional allowances for EU and EEA heirs

Inheritance tax is a state tax whose allowances and reductions are largely set by Spain's autonomous communities, and some regions are far more generous to close family than the state rules. Since 2015, heirs who live in another EU or EEA country can generally apply the allowances of the autonomous community where the property is located. That single rule can turn a large bill into a small one, or even into nothing, depending on the region and the family relationship.

Heirs who live outside the EU and EEA, for instance in the United Kingdom, Switzerland or the United States, should have their position checked specifically. Do not assume either the best or the worst outcome without advice.

What the heir usually needs

• the death certificate, translated or in an international format if issued abroad;
• the will, or the document proving who the heirs are where there is no will;
• a Spanish certificate showing whether the deceased made a will in Spain (certificado de últimas voluntades);
• the title deed and the last IBI receipt of the property;
• the NIE of every heir.

A NIE for every heir

No Spanish return can be filed without a NIE (número de identidad de extranjero). Each heir needs one, including a grandchild inheriting a small percentage. It can be requested at a Spanish consulate (form EX-15 with fee form 790, code 012), at a police station in Spain, or by a representative holding a power of attorney. Because six months pass quickly, apply as soon as the heirs are known. The steps are described in getting a NIE from abroad.

The year of the death: splitting the Modelo 210

The imputed income of a home that is not let is calculated day by day. For the year of the death, the period up to the death belongs to the deceased and is declared on behalf of the estate; the days after belong to the heirs, each for their share.

A worked example: a house with a cadastral value of €150,000 in a municipality at 2%. The full yearly imputed income is €3,000. The owner dies on 30 June (day 181 of a 365-day year). Two children, one in Ireland and one in England, inherit equal halves.

• Deceased's return: 3,000 × 181/365 = €1,487.67 imputed income.
• Each child's imputed income for the remaining 184 days: 3,000 × 184/365 × 50% = €756.16.
• Tax for the child in Ireland (19%): €143.67. For the child in England (24%): €181.48.

Check also whether the deceased had years that were never declared. The heirs take over the pending obligations of the estate, and the tax office can still claim the last four years. The page on what happens when an owner dies covers this in more detail.

Afterwards: owning your share

Once the inheritance is settled and the change of ownership is registered, each heir becomes an ordinary non-resident owner. If the home is kept and not let, everyone files their own Modelo 210 every year: 19% for residents of the EU and EEA, 24% for others, with no deductions. If the family lets it out, rent is declared instead for the days let; see our guide to letting as a non-resident.

Inherited properties are often owned in unequal shares, or split between usufruct and bare ownership when a surviving spouse keeps the use of the home. In that second case, the person who has the use generally declares the imputed income; see usufruct and bare ownership.

A sensible timetable

1. First weeks: gather the documents, identify the heirs, request missing NIE numbers.
2. Before month six: have the inheritance tax calculated with the correct regional rules and file Modelo 650.
3. Next: sign the acceptance of the inheritance before a notary, deal with the municipal plusvalía and register the new owners.
4. Following spring onwards: file the Modelo 210 for the year of death, split as above, and then every year for each heir.

FAQ

Do I pay inheritance tax in Spain if I already pay it in my own country?

Spain taxes the Spanish property in any case. Whether your home country also taxes it, and whether it gives credit for the Spanish tax, depends on its own rules. Check both sides before you pay.

Can one heir file for all the others?

Each heir is a separate taxpayer with their own return. One person, or one adviser, can prepare everything for the family, but every heir needs their own NIE and their own filing.

The deadline of six months is close and we are not ready. What now?

Talk to an adviser at once. Filing late carries surcharges, and missing the deadline can also affect regional reliefs, so it is worth acting before the date rather than after.

Do we owe Modelo 210 while the estate is being settled?

Yes. The home still produces imputed income during that period, and the returns must be filed by the heirs or on behalf of the estate.