A common situation on the Costa Blanca: foreign parents bought a home in Torrevieja twenty years ago and now their children, who live in Belgium, France, the Netherlands or the United Kingdom, inherit a property in a country whose system they do not know. This guide explains, in order, what inheriting a home in Spain as a non-resident involves and what decisions are advisable.
Which law applies to the inheritance
Under the European Succession Regulation, the inheritance is in principle governed by the law of the country of the deceased’s habitual residence, unless the deceased chose the law of their nationality in their will. That is why it is so important to locate the will (in Spain, the certificate of last wills reveals this) and, if there is a foreign will, to legalise it. In any case, property located in Spain is processed with a Spanish notary and Spanish Land Registry.
Procedures you can do without travelling
Almost everything can be handled remotely: you will need a NIE (it can be applied for at the Spanish consulate in your country), and you can grant a power of attorney so a representative can sign the acceptance of the inheritance on your behalf and, if applicable, the sale. Foreign certificates (death, marriage, notarial deeds) must be apostilled and have a sworn translation.
Taxes: where and how much
As a non-resident, you file the inheritance tax with the State Tax Agency, but you are entitled to apply the corresponding regional regulations: if the deceased resided in the Valencian Community, the 99% discount for spouse, children and parents also applies to you. The deadline is 6 months from the date of death (extendable if requested in time), the same as the municipal capital gains tax to the town hall.
After inheriting: keep it or sell it?
If you keep the house
You will assume its annual expenses (IBI, community fees, insurance, utilities) and, as a non-resident, the annual NRIT return for deemed income even if the house is empty. If you rent it out, you will pay tax on those rental earnings in Spain.
If you decide to sell
Remember two figures: the value at which you allocate the property in the inheritance will be your acquisition price for the purposes of future capital gains, and when selling as a non-resident the buyer will withhold 3% of the price as an advance on your tax. With a good allocation valuation and a well-executed sale, the transaction is clean and predictable.
The typical mistake: leaving the house “for later”
Houses closed for years, without maintenance, generating expenses, with the community claiming arrears and losing value. If none of the heirs is going to use it in earnest, deciding quickly — to rent or to sell — is always the most profitable option.
At Mayrasa we specialise in international owners: we coordinate inheritance and sale with the notary, manage the property remotely and sell it with promotion in several languages. If you have inherited a house in the area, we will value it and sell it for you without you having to come except for the essentials (or not at all, with a power of attorney). Write to us in your language.
