Inheriting assets in Spain often raises important questions. Where should the estate be accepted? Which law applies? In which country do you pay inheritance tax, and how much? To simplify, it is essential to separate the matter into two parts: succession law and taxation.

Here, we focus only on a U.K. national who resides in the U.K. and owns a second residence in Spain, leaving it to their children.

Which law applies to the distribution of the estate?

Since the European Succession Regulation (EU Regulation 650/2012) came into effect, the default rule is that the law of the deceased’s habitual residence applies to the distribution of their estate across Europe. However, a person can expressly opt in their will for the law of their nationality to govern their estate.

For U.K. nationals, this means that unless they choose otherwise in a will, U.K. succession law will govern how their Spanish assets (such as a second home or bank accounts) are distributed. This covers whether the estate passes to a surviving spouse, children, or other heirs, depending on national rules, the testament, or a marriage contract.

Is a Spanish last will required?

For a U.K. resident with a Spanish second home, a Spanish will is usually not strictly necessary, because the distribution will be handled under U.K. law.

However, if a U.K. national becomes resident in Spain and wishes for U.K. law to continue applying to their estate, it is highly advisable to have a Spanish will in place expressly stating that choice. Without it, Spanish succession law may be applied.

Practical takeaway

If you are a U.K. national with a second residence in Spain, succession will normally follow U.K. law, unless you expressly opt otherwise. A Spanish will is generally unnecessary unless you reside in Spain and wish to ensure that U.K. law governs your estate.