Guides · · 8 min read
Inherited a property in Madrid while living abroad? A step-by-step guide (2026)
Certificates, a Spanish notary, a six-month tax deadline and the law of another country. This is the order in which things happen when you inherit a home in Madrid from abroad, and what the tax really looks like.
Inheriting a home in Spain is not complicated in itself, but it has a clear order and a few deadlines. If you live abroad, the main challenge is doing it from a distance and making sure nothing gets lost between two countries.
1. Find out whether there is a Spanish will
The first document is the certificate of last wills (certificado de últimas voluntades), which shows whether the deceased made a will in Spain and before which notary. It can be requested from 15 working days after the death. From abroad, it is requested by post, with the death certificate apostilled and translated.
2. Which country’s law applies
Under the EU Succession Regulation, the law of the country where the deceased habitually lived at the time of death governs the whole inheritance, unless they chose in their will the law of a nationality they held. So a British or German citizen who lived in Madrid may have chosen their own national law. The European Certificate of Succession can help prove who the heirs are in another EU country.
3. Acceptance before a notary
The heirs accept the inheritance and divide it in a deed before a Spanish notary. You don’t all have to travel: heirs abroad usually take part through a power of attorney granted before a notary in their country (with an apostille) or at a Spanish consulate. Everyone involved needs an NIE.
4. Spanish inheritance tax
Each heir pays inheritance tax (Impuesto sobre Sucesiones) on what they receive. The deadline is six months from the death, and a further six months can be requested within the first five.
| Heir | Reduction in Madrid |
|---|---|
| Children, spouse, parents | 99% of the tax |
| Siblings, nephews and nieces, uncles and aunts | 50% (deaths from 1 July 2025) |
| Others | No regional reduction |
Living abroad no longer means paying more. Since 2021 the law allows non-resident heirs to apply the rules of the Spanish region involved: if the deceased lived abroad, those of the region where most of the Spanish assets are; if the deceased lived in Madrid, Madrid’s. Non-resident heirs file form 650 with the Spanish Tax Agency, not with the Comunidad de Madrid.
5. Plusvalía and land registry
The town hall charges the plusvalía on the land, also on inheritances (the deadline is six months, extendable). Then the deed is registered in the Land Registry. Only from that moment is the property in the heirs’ names and ready to be sold.
6. Your own country
The country where you live, or where the deceased lived, may also tax the inheritance. Many countries credit the Spanish tax paid; with Madrid’s 99% reduction, the Spanish tax is often very small, so the home country’s rules usually decide the final bill. Talk to an adviser there early.
Selling afterwards
You can prepare the sale while the inheritance is being processed: photos, price, buyers. The deed of sale can only be signed once the property is registered in your names.
Frequently asked questions
Can I refuse an inheritance with debts?
Yes. You can renounce it, or accept it “a beneficio de inventario”, which means you only answer for the debts up to the value of what you inherit. Get advice before accepting.
What if one heir does not want to sell?
The options are agreeing to sell, one heir buying out the others, or selling only your share. Without agreement there are legal routes, but they take longer and cost more.
Do I need a Spanish bank account?
It is not strictly required by law, but it makes paying taxes and receiving the proceeds of a sale much easier.
Sources
- administracion.gob.es: inheritances and the certificate of last wills
- Regulation (EU) No 650/2012 on succession, Chapter III
- Comunidad de Madrid: tax ruling on the 50% reduction for siblings, nephews and uncles (2025)
- Agencia Tributaria: instructions for form 650 for non-residents
- Comunidad de Madrid: extension of the deadline for inheritance tax
- Ayuntamiento de Madrid: how the plusvalía (IIVTNU) is calculated