For foreigners who own a second home there
This is just to offer a very general idea to a foreigner who owns a second home in the region. It also outlines the steps required to transfer ownership of the property after inheritance.
Foreigners who inherit real estate in Catalonia, Spain, may face several legal, tax-related, and administrative challenges. Legal processes in Spain involve notarial and registration fees. Although not compulsory, hiring a specialist inheritance lawyer is extremely advisable.
APPLICABLE LAW
- Under EU Regulation 650/2012 (Brussels IV), the inheritance law of the country where the deceased had their habitual residence applies by default.
- A person can choose to apply the law of their nationality by stating this in a will.
- Without this declaration, Spanish law—and specifically Catalan inheritance law—may apply to the property.
CATALAN INHERITANCE RULES
- Catalonia has its own civil code with more flexible inheritance rules.
- Forced heirship applies, but only 25% of the estate must go to children or descendants.
- The surviving spouse or registered partner has strong rights, including usufruct (lifetime use) of the family home and rights to financial support.
- The rest of the estate can be freely distributed according to the will.
- The property may have outstanding debts, mortgages, or registry inconsistencies. Shared inheritance with other heirs can also complicate ownership and usage
CATALAN INHERITANCE TAXES
- Inheritance tax is applied to assets located in Catalonia, even for non-residents.
- Tax rates are progressive, depending on the value of the inheritance and the relationship to the deceased.
- Close relatives (children, spouses) benefit from significant allowances and deductions. Non-EU/EEA residents may not qualify for regional tax benefits and may pay higher rates.
- EU/EEA citizens can access regional tax benefits; non-EU residents may face higher rates.
- Inheritance tax must be paid within six months of the date of death. Extensions are possible, but late payments can incur penalties and interest.
WILLS AND PLANNING
- It is strongly recommended to draft a Spanish will for assets in Spain.
- The will should clearly state that the law of the testator’s nationality is to govern their estate as this avoids the automatic application of Catalan law and simplifies the inheritance process.
- Without a Spanish will, the inheritance process becomes more complex. Heirs may need to obtain sworn translations, apostilles, and foreign legal certificates, often causing delays and additional costs.
- All documents must be in Spanish. The heir must have a Spanish NIE (Foreigner Identification Number) and may need a local tax representative if they are not a resident.
STEPS TO TRANSFER THE PROPERTY OWNERSHIP
- Obtain the death certificate (translated and apostilled if issued outside Spain).
- Acquire a certificate from the Spanish Registry of Last Wills.
- Obtain a copy of the will (or use intestate inheritance procedures if no will exists).
- Prepare an inheritance deed (“Escritura de aceptación de herencia”) with a Spanish notary.
- Pay inheritance tax within 6 months of the date of death (extensions possible).
- Register the new ownership at the local Land Registry (“Registro de la Propiedad”).
- Notify the local town hall for property tax (IBI) purposes.
