Inheritance law and your Spanish property: how to arrange it properly

Do you own a property in Spain or are you planning to buy one? Then it is wise to consider what will happen to the property when you die. Because the property is located abroad, both Dutch and Spanish rules may apply. Arranging this in good time will make matters considerably easier for your next of kin. In this article, we explain how inheritance law works when you own a Spanish property. You will learn about the main differences between Dutch and Spanish inheritance law, how the European Succession Regulation works and why, in some situations, it may be sensible to draw up a Spanish will alongside a Dutch will.

Why is inheritance law important for a property in Spain?

A property in Spain forms part of your estate. This means that, after your death, it must be established who the heirs are and how ownership of the property will be transferred. Because the property is located in another country, several legal systems may play a role. It is therefore advisable to consider in advance how you want your estate to be arranged.

Spanish versus Dutch inheritance law

There are several differences between Spanish and Dutch inheritance law. Spain, for example, has rules that provide greater protection for direct heirs in certain situations. The procedures for settling an estate may also differ from those in the Netherlands. The Netherlands also has statutory inheritance rules, but its rules and options are not identical to those in Spain. Which law ultimately applies depends on several factors, including your place of residence and any choice of law you have made.

The European Succession Regulation

Since the European Succession Regulation came into effect, many European countries have applied common rules to international estates. The regulation makes it easier to determine which national inheritance law applies. An important part of this is the possibility of making a choice of law. In certain situations, a person can choose for the inheritance law of their nationality to apply to their estate.

Choosing Dutch inheritance law

Many Dutch nationals who own a property in Spain choose to include a choice of law in favour of Dutch inheritance law. This can establish that Dutch inheritance law applies to the estate. Whether such a choice is advisable in your situation depends on your personal circumstances. It is therefore sensible to seek advice from a civil-law notary or a specialist lawyer who is familiar with international estates.

Is a Spanish will necessary?

In addition to a Dutch will, some owners choose to draw up a Spanish will as well. This does not mean that the Dutch will automatically becomes invalid. Both documents can exist alongside each other, provided they are properly coordinated. In some cases, a Spanish will can make settling an estate in Spain more practical. The best solution for you depends on your personal wishes and how you want your estate to be arranged.

Spanish inheritance tax

Spanish inheritance tax (impuesto sobre sucesiones) may also apply to an estate. The amount of tax depends on several factors, including the value of the estate, the relationship between the heirs and the region in which the property is located. An important difference from the Netherlands is that rates and allowances can vary by autonomous region. The tax burden for a property in one region may therefore differ from that for a comparable property elsewhere in Spain. Always check the current rules for the relevant region or seek advice from a specialist.

Practical points to consider

If you own a property in Spain, it is advisable to keep your records in good order. Store important documents, such as the title deed, property details and any wills, in a safe and easily accessible place. You should also regularly check whether your will and any choice of law still suit your personal situation. Changes in your family circumstances or assets may be a reason to have existing documents reviewed.

Seek advice about your personal situation

Every estate is different. General information alone cannot determine which solution is best for your situation. Do you have questions about a choice of law, a will or the settlement of an estate that includes Spanish property? Contact a civil-law notary or a specialist lawyer. They can advise you on the current rules and the options that suit your personal circumstances.

Explore property in Spain through Yeurop

Are you looking for a property in Spain or would you like to know more about the buying process? On Yeurop, you will find an overview of properties offered by international estate agents and private sellers. You can also find more practical information on our advice and frequently asked questions pages. Found a property that matches your requirements? You can contact the seller directly. Yeurop brings international property listings together on one clear platform, making it easy to explore buying a property in Spain.