Inheriting property in Spain when you live in the United States

By René Dechamps Azanza, lawyer (Madrid Bar no. 21.297) · November 2026

The short answer

• Spanish inheritance tax is due on property located in Spain, whoever the deceased and the heirs are and wherever they live. The deadline is six months from the date of death.
• There is no estate or inheritance tax treaty between the United States and Spain. The 1990 treaty covers income tax only, so double taxation is relieved under each country's own rules.
• Which law governs the inheritance: for deaths since 17 August 2015, Spain applies EU Regulation 650/2012. If the deceased lived in the United States, the starting point is the law of their state; many US states refer real property to the law of the place where it is located, which can bring the Spanish property back under Spanish law (renvoi). A will can also choose the law of the deceased's nationality.
• Regional rules also apply to non-residents. For a property in Madrid, heirs apply the Madrid rules, including a 99% relief for spouses, children and parents (groups I and II).
• You do not need to travel. Every step can be done from the United States with a power of attorney.

Documents from the United States

• Apostille: the United States is a party to the Hague Apostille Convention. US public documents (death certificate, notarised powers of attorney, court orders) are apostilled by the Secretary of State of the state that issued them; federal documents, by the US Department of State.
• Sworn translation: every document in English needs a sworn Spanish translation (traducción jurada). We arrange it with our translators.
• Proof of who inherits: the will and, where there has been probate, the court order and the letters testamentary or of administration. If there is no will, a document proving who the heirs are under the law of the state.
• Certificate of law: when US law applies, the Spanish notary usually asks for a certificate from a US lawyer explaining the rules of the state that govern the succession.
• Spanish documents: the certificate from the Spanish registry of wills (Registro General de Actos de Última Voluntad) and the Spanish title deed of the property.

Step by step in Spain

1. Spanish tax number (NIE) for each heir, which can be requested at a Spanish consulate in the United States or through a representative.
2. Deed of acceptance and partition before a Spanish notary, signed in person or through a representative with a power of attorney.
3. Spanish inheritance tax: when the deceased or the heirs do not live in Spain, the return (form 650) is filed with the State Tax Agency, applying the rules of the region. Heirs living outside the EU and the European Economic Area, as in the United States, must appoint a representative resident in Spain.
4. Municipal capital gains tax (plusvalía municipal): six months from the death, extendable to one year if requested in time.
5. Registration of the property in the heirs' names at the Land Registry (Registro de la Propiedad) and the Cadastre.

Deadlines that matter

• Spanish inheritance tax: six months from the death. A further six months can be requested within the first five; the extension accrues late-payment interest.
• Plusvalía municipal: six months, extendable to one year if requested before the first deadline expires.
• US estate tax return (Form 706), when required: nine months from the death, extendable by six months.

The US side

• Federal estate tax: the estate of a US citizen or US-domiciled person includes worldwide assets, so the Spanish property counts towards the federal exemption. If federal estate tax is due, Section 2014 of the Internal Revenue Code allows a credit for foreign death taxes paid on property located in that foreign country, subject to its limits.
• For the heirs: an inheritance is not taxable income in the United States, but a US person who receives more than USD 100,000 from a foreign estate or a non-US person must file Form 3520. Inherited Spanish bank or investment accounts may also have to be reported (FBAR and FATCA).
• State taxes: some states have their own estate or inheritance tax. Your US adviser should check whether yours does.

Trusts and Spanish property

Spanish law does not recognise a trust as the owner of a property. In practice a Spanish home is usually registered in the deceased's own name, so it passes through the Spanish succession even if a US living trust covers the rest of the estate. If a Spanish property was placed in a trust or a US company, the structure needs a specific review, because Spain may tax what the heirs receive as an inheritance.

If you then sell

When the seller does not live in Spain, the buyer withholds 3% of the price and pays it to the Spanish tax office. The seller then declares the gain, taxed at 19% for non-residents, measured from the value declared in the inheritance. In the United States the sale must also be reported; the income tax treaty and the foreign tax credit help avoid paying twice on the same gain.

A typical case

A widow living in Florida inherits from her husband, a US citizen also living in Florida, an apartment in Madrid. Florida refers real property to the law of the place where it is located, so the Spanish apartment can follow Spanish law. She signs a power of attorney before a Florida notary with an apostille, appoints a representative in Spain and applies the Madrid rules, with the 99% relief. On the US side, her adviser checks whether the estate exceeds the federal exemption and, if so, applies the credit for the Spanish tax.

How we work on these cases

The founding partner, René Dechamps Azanza, handles each estate personally, in English or Spanish. He reads the US documents directly and coordinates with the notary in Spain and with your estate lawyer or CPA in the United States, by video call and in your time zone.

Frequently asked questions

Does a US will or probate order cover the property in Spain?

It can, but a Spanish notary will ask for the will, the probate documents, an apostille on each and a sworn Spanish translation, and often a certificate of the applicable state law. A separate Spanish will limited to the Spanish assets, coordinated with the US will, makes the process much simpler.

Is there a tax treaty between the United States and Spain for inheritances?

No. The 1990 treaty covers income tax, not estate or inheritance tax. Double taxation is relieved under each country's own rules, such as the US foreign death tax credit.

Do I have to report an inheritance from Spain to the IRS?

An inheritance is not taxable income for a US heir, but a US person who receives more than USD 100,000 from a foreign estate or a non-US person must file Form 3520. Spanish bank accounts you inherit may also trigger FBAR and FATCA reporting.

Do I have to travel to Spain?

No. A power of attorney signed before a US notary, with an apostille, or at a Spanish consulate in the United States, lets a representative sign the deed and file the taxes in Spain.

General information, updated November 2026. It does not replace advice on your specific case. US tax matters should be confirmed with a US adviser.