Inheriting property in Spain may seem attractive, but dividing an estate among siblings can quickly become complicated
What if one sibling wants to sell while another prefers to keep the property? What if some heirs live abroad?
This article aims to help non-resident heirs—whether EU citizens or non-EU nationals—understand how inheritance division among siblings in Spain works, their rights and responsibilities, and the steps they need to take to protect their interests. For a broader understanding of the tax obligations involved, you may also want to review how inheritance tax in Spain is applied to both residents and non-residents.
Spain has a detailed and specific legal framework governing succession, which directly influences how property is divided among siblings. Unlike other countries where the testator has broad freedom to distribute assets, Spanish inheritance law enforces restrictions through mechanisms such as the legítima (forced heirship rules), which reserves a portion of the estate for certain compulsory heirs.
Therefore, it is essential for heirs—especially non-residents—to clearly understand the rules governing the division of inheritance among siblings in Spain. Knowing these rules helps make the process smoother, reduces the chance of family disputes, and ensures efficient management of inherited assets.
It is also important to remember that, although inheritance tax (Impuesto de Sucesiones) is set at the national level, its administration has been delegated to Spain’s autonomous communities. Each region enforces its own tax rules, including different reductions, allowances, and rates. As a result, the tax burden for inheriting property can vary greatly depending on the estate’s location. For example, the rules for Andalucia Inheritance Tax offer more generous reductions compared to other regions.
In Spain, part of the estate must be legally reserved for certain compulsory heirs. This rule, known as legítima, means that even if the testator leaves a will, a portion of the estate must still go to legal heirs. Usually, these heirs are the children, but if there are no descendants or ancestors, siblings may become the primary beneficiaries under Spanish law.
In the context of inheritance division among siblings in Spain, having a properly drafted Spanish will can make the difference between an orderly inheritance process and a long, expensive one—especially when the heirs live abroad.
A will allows the testator to name one or more siblings as sole or joint heirs in specific proportions, allocate particular assets to each heir (known as legacies), or exclude potential heirs who are not entitled to a required share (such as other collateral relatives).
Under EU Regulation No. 650/2012, a foreign testator can choose to have their estate governed by the law of their nationality. This can directly affect how inheritance is divided, but it must be clearly stated in the will.
Ultimately, a will not only clarifies the testator’s wishes but also speeds up succession processes, reduces the risk of legal disputes between siblings, and allows non-resident heirs to move forward with greater legal certainty. Based on our experience advising international families, we always recommend drafting a will specifically for assets located in Spain, supported by specialised legal advice.
For tax residents in Spain, if there is no will, intestate succession rules apply, meaning the estate is distributed according to law. In the absence of children, a spouse, or parents, siblings inherit in equal shares. This division often raises questions for non-residents unfamiliar with Spanish legal procedures.
What happens to non-residents who own property in Spain without a will? Which law applies?
In intestate successions, a figure known as the contador-partidor dativo (court-appointed estate partitioner) may also be involved. This professional is regulated by Articles 1057 and 1058 of the Spanish Civil Code, following reforms introduced by Law 15/2015 of July 2 on Voluntary Jurisdiction. Their role is to distribute assets when heirs cannot reach an agreement. This mechanism helps prevent the process from stalling, especially when some siblings live abroad or show little interest in actively participating
Once an inheritance is accepted, dividing real estate among multiple heirs in Spain involves several required legal steps. Following these ensures the division is valid, the property is registered correctly, and tax obligations are fulfilled. For heirs who live abroad, it is often more efficient to grant a power of attorney in Spain, allowing a trusted solicitor to manage the entire procedure on their behalf.
For non-resident heirs, it is crucial to understand and follow each step, from notarial acceptance and inheritance allocation to registering the new owners in the Land Registry.
Although the process may seem complex, with proper legal guidance, it can be completed efficiently, preventing disputes or restrictions on future use or sale of the property.
The first legal step is to accept the inheritance, which must be done before a notary. All siblings who are heirs must appear in person or grant power of attorney to formalise the acceptance.
Once the inheritance is accepted, the next step is the partition of the estate—that is, dividing the inherited property between siblings. This requires an agreement among the heirs, who must decide whether to assign undivided shares, sell the property, or allow one sibling to buy out the others’ shares. Reaching an agreement is crucial; otherwise, legal problems are inevitable.
After settling the inheritance tax, the new owners must register the ownership transfer with the Land Registry. This step is essential for ensuring legal security and allowing future transactions like sales or rentals.
Protect your rights in inheritance division among siblings.
Dividing inherited property in Spain among siblings involves both legal considerations and careful tax planning. For non-resident heirs, understanding the tax responsibilities is essential to avoid penalties, unexpected expenses, or surprises.
The Spanish tax system includes several taxes that may apply to inherited property, such as the Municipal Capital Gains Tax, Inheritance and Gift Tax, and, in some instances, Non-Resident Income Tax.
Spain applies Inheritance Tax, regulated by Law 29/1987 on Inheritance and Gift Tax. The amount depends mainly on the autonomous community where the estate is located and the degree of kinship, since regional authorities have the power to grant their reductions and allowances. The tax is applied individually to each heir, based on the value of their inheritance and their relationship with the deceased.
For example, suppose two siblings living in the United Kingdom inherit an apartment in Málaga valued at €250,000 after their mother’s death. In that case, they fall into Group II for Inheritance Tax purposes as children of the deceased. This entitles them to significant allowances in Andalusia. Current laws in Andalusia offer a 99% reduction in the tax owed for Group II heirs, as long as each heir’s existing assets do not exceed €1 million. If all formal requirements are met, the tax they owe could be reduced to just a few hundred euros or even nothing.
If the siblings choose to sell the property afterwards, they must declare any capital gains on their tax returns. For non-residents, this may involve withholding a percentage of the sale price as an advance tax payment. Understanding capital gains tax on property in Spain for non-residents is essential before deciding to sell, as exemptions and deductions may apply depending on the circumstances.
Once the inheritance is divided and registered in the heirs’ names, they gain full ownership of their shares. If they then sell the property to divide the inherited assets among siblings, they must consider the impact of Non-Resident Income Tax (IRNR), especially the capital gains from the sale.
Capital gains tax for non-residents on Spanish property is 19% profit, which is calculated as the sale price minus the value declared in the inheritance (plus acquisition expenses such as notary, registry, and taxes). However, if the seller lives outside the EU, not all costs may be deductible. Additionally, the buyer is required to withhold 3% of the price of the purchase and send it directly to the Spanish Tax Agency as an advance payment of IRNR.
As mentioned earlier, each autonomous community in Spain has its own tax rules, so the inheritance tax burden in Andalusia will differ from that in Catalonia or the Balearic Islands. This results in significant regional differences. In addition, sellers must also take into account the plusvalía tax, which is a municipal levy applied when transferring property ownership, including inherited real estate.
Previously, there was significant discrimination between residents and non-residents in the application of these taxes. However, since the Court of Justice of the European Union (CJEU) ruling of September 3, 2014, EU non-residents (and later non-EU nationals as well) are entitled to the same regional allowances and reductions as residents, provided the estate is located in that region.
For this reason, at Tejada Solicitors, we always recommend reviewing each case with an international inheritance lawyer, just as we do in our practice.
Tax advisors specializing in international taxation assist expatriates in navigating the Spanish tax system. With over 20 years of experience, I provide tailored tax plans to optimize tax efficiency, ensuring compliance with regulations and minimizing dual taxation.
When several siblings inherit property together in Spain, reaching an immediate agreement on its use, management, or division is not always possible. Differing expectations, financial interests, or even geographical distance—especially if some heirs live abroad—can create family conflicts that complicate the division process.
This section reviews the main legal and out-of-court options available for resolving inheritance disputes among siblings in Spain.
At Tejada Solicitors, we can provide appropriate management guided by lawyers specialising in inheritance and property law. This helps prevent unnecessary delays, protects each heir’s rights, and ensures a fair and efficient resolution of conflicts.
When disagreements happen, mediation by a lawyer experienced in inheritance issues can be an effective and less expensive alternative to going to court. At Tejada Solicitors, mediation encourages dialogue among siblings and can help them reach a fair and balanced agreement.
In cases involving real estate where some siblings want to sell and others do not, it is possible to file a court action to divide the jointly owned property. If no agreement is reached, the process might result in a court-ordered sale of the property by auction.
When disagreements occur regarding the legitimacy of a will or the distribution of the estate, contentious proceedings may be initiated. These are intricate processes that demand specialised knowledge of international inheritance litigation.
For example, if there are suspicions that a will was manipulated or does not accurately reflect the deceased’s last wishes, or if the distribution of assets is challenged, heirs may start court proceedings to contest the inheritance. This involves presenting evidence, appearing before the courts, and having detailed knowledge of Spanish and international inheritance law. These proceedings can be lengthy and expensive if not managed properly.
That is why it is crucial to have the support of a law firm specialising in international inheritance litigation, capable of effectively defending the interests of non-resident heirs and providing a solid legal solution even in the most complex cases, as we do in our practice.
Ensure a smooth property division process in Spain.
When siblings inherit a property in Spain, it is common for them to become co-owners. This co-ownership requires joint decision-making and coordination, which can be challenging when heirs have different interests or live in different countries.
This section explores the main legal and practical options for managing inherited property jointly.
One common solution is to keep co-ownership of the inherited property through private agreements that regulate use, expenses, and upkeep. However, this only works if the siblings maintain a good relationship and share similar goals.
Another frequent option is to sell the property and share the proceeds. This is one of the most common ways to split inherited property between siblings when they do not wish to keep joint ownership or use the property together.
Finally, if one sibling wants to keep the property, they can negotiate to buy out the others’ shares. This allows the property to stay within the family without needing to sell to outsiders.
Navigating the division of inherited property among siblings in Spain can be complex. At Tejada Solicitors, we specialise in inheritance law and offer comprehensive services to ensure a smooth process:
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Yes, through legal action, a co-owner can request a judicial division of the property, potentially leading to a forced sale.
If a sibling renounces their share, it may be redistributed among the remaining heirs or handled according to the will or intestate laws.
While there’s no strict deadline, delays can lead to complications, especially concerning tax obligations and property management.
A professional appraisal is typically conducted to assess the property’s market value for fair division and tax purposes.
Yes, if specified in the will or agreed upon during the partitioning process, siblings can inherit different proportions of the property.
