Inheritance: the steps for declaring the estate of a French national in Spain

The inheritance declaration is governed by different rules depending on the nature of the assets concerned and requires careful coordination between civil, tax and administrative steps carried out in France and in Spain. This article sets out, in a structured manner, the main practical stages of declaring the inheritance of a French national in Spain.

In which cases must an inheritance be declared in Spain?

An inheritance must be dealt with in Spain in particular where:

• the deceased owned real estate located in Spain,
• notarial formalities must be completed before a Spanish notary,
• some heirs reside outside Spain,
• tax obligations arise in Spain as a result of the assets transferred.

The location of the assets and their nature play a decisive role in determining how declaratory obligations are divided between France and Spain.

Real estate and financial assets: where must the inheritance be declared?

Real estate located in Spain

Under the Franco-Spanish tax convention, immovable property is declared and taxed in the State where it is located. Where an immovable asset forming part of the estate is situated in Spain, the inheritance declaration must therefore be made in Spain.

This entails in particular:

• the execution of a deed of partition or acceptance of inheritance before a notary in Spain,
• the filing of an inheritance tax return with the Spanish tax authorities.

Financial assets

Financial assets are in principle declared in the State of the deceased's last tax residence. Accordingly, bank accounts or investments held in Spain by a French national who was tax resident in France are generally declared and taxed in France, subject to a case-by-case analysis.

Time limits for declaring an inheritance in Spain

The inheritance declaration must be filed within six months from the date of death. Extensions may be granted and penalties apply in the event of late filing. The rules governing time limits and penalties fall under Spanish inheritance tax law.

For a full analysis of these rules, see the page Inheritance tax in Spain.

The main steps in declaring the inheritance of a French national in Spain

The succession procedure generally involves the following stages:

• obtaining a multilingual death certificate,
• verifying last wills in France and in Spain,
• consulting the Spanish central register of life insurance contracts,
• preparing an inventory and valuation of assets, in particular real estate,
• obtaining or allocating a Spanish tax identification number,
• appointing a tax representative in Spain if required,
• preparing powers of attorney for non-resident heirs,
• certified translation of documents drawn up in French,
• execution of the deed of partition or acceptance before a Spanish notary,
• filing the inheritance tax return with the tax authorities,
• payment of any duties and local taxes,
• registration of the new title at the Spanish land registry.

These steps must be coordinated in order to avoid inconsistencies between civil deeds, tax declarations and registration formalities.

Other taxes connected with the inheritance in Spain

Municipal tax on the increase in land value

The transfer of a real estate asset is subject to the municipal tax on the increase in land value.

Its amount depends in particular on:

• the municipality concerned,
• the length of ownership of the property,
• the value at which it is transferred.

Non-resident income tax

Non-resident heirs remain subject each year to non-resident income tax solely by reason of owning a property in Spain, whether or not it is occupied.

This obligation is independent of the inheritance declaration itself.

A comprehensive overview

This article provides an explanatory overview of the practical conduct of an inheritance declaration in Spain.

For a complete and coherent analysis of your situation, you may consult the following pages:

• Inheritance in Spain: assistance for French-speaking heirs
• Inheritance tax in Spain
• Wills in Spain

These pages make it possible to approach the succession as a whole, from both a civil and a tax perspective.