How to protect your Spanish property and heirs through smart estate planning
Wills, inheritance tax, and avoiding painful surprises
Welcome to part 3 of our blog series based on the Verhome Podcast with legal expert Carlos Savenije Martin. In this final chapter, we dive into one of the most sensitive but important topics: inheritance. What happens to your Spanish property when you pass away? How can you protect your heirs and minimize inheritance tax? And do you need a Spanish will? Let’s explore how proper planning brings peace of mind.
1. Yes, you need a Spanish will
If you own real estate in Spain, a Spanish will is strongly recommended — even if you already have one in your home country.
Why a local will matters:
- It speeds up the inheritance process considerably
- Spanish notaries and registrars rely on local documentation
- It reduces confusion and legal fees for your heirs
💡 Tip: Make sure your Spanish will references the applicable national law (e.g. Dutch or Belgian) if you want your home country’s inheritance rules to apply.
2. Inheritance tax in Spain: not as bad as you think
Contrary to common belief, Spanish inheritance tax can be relatively mild — especially in certain regions like Comunidad Valenciana (Costa Blanca North) or Andalusia.
Key facts:
- Direct family members often benefit from generous exemptions
- Some regions offer up to 99% reduction for spouses and children
- Assets must still be declared and processed correctly
💡 Example: A property worth €300,000 may result in only a few hundred euros in tax for a child inheriting in Valencia, provided the paperwork is properly filed.
3. Company ownership doesn’t always bypass inheritance tax
Some investors think that owning property via a Spanish SL or foreign BV avoids inheritance tax — but this is only true if the company is actively used for business.
The reality:
- Passive holding companies don’t qualify for tax exemptions
- Business activity must be verifiable (e.g. regular rental income, invoices, staff)
- Spanish authorities may still tax the shares transferred upon death
💡 Warning: Don’t rely on your company structure alone. Combine it with a will and proper estate planning.
Plan early, sleep better
Estate planning is more than taxes — it’s about peace of mind. With a local will, professional advice, and smart ownership structure, you protect your legacy and spare your family unnecessary stress.
🎧 Want to learn more about inheritance law, legal documents, and practical scenarios? Listen to this episode of the Verhome Podcast with Carlos Savenije Martin.
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