Inheriting Property in Marbella: What Beneficiaries Need to Know
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Inheriting a Marbella property from a family member involves a specific Spanish legal process. Here is what to expect, what it costs, and how to manage it alongside buying property in Marbella for future generations.
What happens when a Marbella property owner dies
When someone who owns property in Marbella passes away, their Spanish assets go through the Spanish succession process regardless of where the deceased was resident and regardless of what their home country will says. Spanish law governs Spanish assets. This surprises many families who assumed their UK or Irish or German will handled everything.
EU Succession Regulation 650/2012
EU Regulation 650/2012 (which applies to EU member states and was incorporated into Spanish law) allows a person to elect for the law of their home country to govern their succession - including their Spanish assets. If the deceased was UK, Irish, or German national and made this election in their will, the succession of the Spanish property follows that home country's law rather than Spanish law. This can be advantageous in some family situations.
For this election to work, it must have been made explicitly in the deceased's will. This is one of the key reasons we emphasise having a Spanish will (which can make this election) alongside any existing will in your home country when buying property in Marbella.
Spanish inheritance tax
Beneficiaries of Spanish property pay Spanish inheritance tax (Impuesto de Sucesiones y Donaciones). Andalucia's regime is more generous than some other Spanish regions - allowances between direct family members have been significantly increased. However, the tax and process still requires specific steps: obtaining a Spanish inheritance certificate (certificado de actos de ultima voluntad), having the will notarised and apostilled if foreign, and applying for the inheritance transfer at the Spanish tax authority.
The process timeline
Spanish inheritance procedures can take 6-18 months in total, depending on complexity. There is a six-month deadline for declaring the inheritance to the tax authority (extendable, but penalties may apply for late declarations). A Spanish lawyer specialising in inheritance matters is essential for navigating this - your property purchase lawyer may handle this, or they may refer you to a specialist.
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Check if it's still free - PlanMarbella.comFrequently Asked Questions
Does my UK will cover my Marbella property?
Partially, but not completely. A UK will can elect for UK law to govern your Spanish assets (under EU Succession Regulation 650/2012), but Spanish probate procedures still apply to the transfer of Spanish property. A separate Spanish will, registered with the Spanish central wills registry, simplifies the process considerably for your beneficiaries.
How much is Spanish inheritance tax for a Marbella property?
Andalucia has significantly improved inheritance tax allowances for direct family members (spouses, children). For close relatives, the effective tax rate can be very low or zero up to certain values. For more distant relatives or non-family beneficiaries, rates can be significant. A Spanish tax adviser can calculate the specific position for your estate.
Can I avoid Spanish inheritance tax on my Marbella property?
Legal avoidance through proper estate planning is possible to some extent - through ownership structures, lifetime gifts, or election for home country law where advantageous. Evasion is illegal and not something any reputable adviser would recommend. Early planning before you buy is more effective than planning after.