What to know before working with an international inheritance lawyer
- Ley 5/2025 transforms the 2026 picture.
- Direct relatives (Groups I and II) retain the 99% ISD reduction.
- Group III heirs gain a 25% reduction from 1 June 2026, rising to 50% in June 2027. Source: BOE – Ley 5/2025.
Professional legal assistance by an international inheritance lawyer in Spain
Our firm was recently approached by a Belgian family in search of an international inheritance lawyer who could manage a complex cross-border succession involving assets in the Valencian Community, Spain.
Their case is a clear illustration of why specialist legal support is essential when inheritance proceedings involve multiple jurisdictions, tax systems, and property registries simultaneously.
The estate comprised urban plots, a villa with a swimming pool, a rural property of over 10,000 m² in the Marina Alta (Alicante), luxury vehicles, a leisure boat, and registered usage rights.
All heirs were tax residents in Belgium, introducing significant coordination challenges between Belgian and Spanish succession law.
Understanding your tax residency status in Spain is the essential first step, as it determines the entire fiscal framework that applies to your inheritance.
For a broader context on international legal obligations in Spain, it is always advisable to seek specialist advice before taking any steps.
The 2026 legal and tax landscape for international inheritances in Spain
The Valencian Community has undergone significant tax reform under Ley 5/2025, published in the BOE on 31 May 2025.
These reforms directly affect how an international inheritance lawyer structures succession planning for non-resident heirs. The changes are being phased in between 2025 and 2027, and several key provisions are already in force in 2026.
ISD reduction
For direct relatives (Groups I and II) in the Valencian Community — reinstated in May 2023 under Ley 6/2023.
New ISD reduction
For siblings, aunts/uncles, and nieces/nephews (Group III) from 1 June 2026 under Ley 5/2025.
Flat IRNR rate
On capital gains from Spanish property sales for all non-residents — based on AEAT published rates.
Reduced ITP rate
In the Valencian Community, from 1 June 2026, for properties below €1,000,000, under Ley 5/2025.
Valencian Community ISD reductions by beneficiary group (2026)
| Group | Relationship to the deceased | Personal allowance | Regional reduction (2026) | Governing legislation |
|---|---|---|---|---|
| Group I | Children under 21 (incl. adopted) | €100,000 + €8,000/yr under 21 (max €156,000) | 99% bonification | Ley 29/1987 + Ley 6/2023 |
| Group II | Children 21+, spouses, parents | €100,000 | 99% bonification | Ley 29/1987 + Ley 6/2023 |
| Group III | Siblings, aunts/uncles, nieces/nephews | €8,000 | 25% from 1 June 2026; 50% from June 2027 | Ley 5/2025 |
| Group IV | All other relatives and non-relatives | — | No regional reduction | State scale under Ley 29/1987 |
Source: Agència Tributària Valenciana (ATV) – Impuesto sobre Sucesiones y Donaciones
Key distinction for non-EU heirs in 2026
Following the Court of Justice of the EU ruling of 3 September 2014, EU/EEA-resident heirs may access Valencian regional ISD reductions on assets located in the Valencian Community.
Heirs resident outside the EEA are generally limited to the state-level rules of Ley 29/1987, which offers no Group III bonification.
Errors in applying the wrong framework can attract penalties of 50%–150% of the underpaid amount plus late-payment interest under AEAT enforcement procedures.
This distinction matters significantly for heirs from the UK, Canada, the US, Australia, and other non-EEA countries.
Initial assessment and strategy in an international inheritance in Spain
From the outset, our international inheritance lawyer teams have designed a comprehensive legal and fiscal strategy aligned with Spanish inheritance law.
Given the breadth of the estate and the heirs’ non-resident status, every procedural step had to comply with both Spanish law and the applicable bilateral convention framework.
Our advisers also reviewed potential Spanish wealth tax exposure and assessed whether any exit tax obligations could arise from the cross-border asset transfers involved.
- Coordination with a Belgian notary for the preparation of notarised powers of attorney, duly apostilled under the Hague Convention — enabling full remote representation in Spain.
- Verification of heirs’ non-resident status to determine the correct Impuesto sobre Sucesiones y Donaciones (ISD) framework and the applicable personal allowances per beneficiary group.
- Fiscal and cadastral analysis of all real estate registered in Jávea. Properties that are incorrectly registered cannot be transferred or sold until regularised — see our full guide on legalising unregistered property in Spain.
- Valuation of all personal property: luxury vehicles, a Belgian-registered leisure boat moored in Dénia, and household furnishings, with reference to applicable regional property taxes in Spain.
Notarial mandate and legal authorisation
The heirs granted our firm an international notarial mandate, drafted and legalised in Brussels under the Hague Apostille protocol.
This document empowered us to act on their behalf in all matters before the Agencia Tributaria (AEAT), property registries, banking institutions, and the Maritime Authority, without requiring the family to travel to Spain at any stage.
This approach is strongly recommended for any non-resident dealing with a complex inheritance in Spain, and is compatible with long-term residence planning should heirs later wish to establish ties with Spain.
Asset management and cadastral regularisation
Our team conducted full cadastral regularisation across all five urban plots, the villa, and the rural property, an essential prerequisite before any public deed of inheritance or sale can be executed.
For the leisure boat, we incorporated structural inspection clauses linked directly to the inheritance settlement timetable and coordinated the transfer with the Maritime Authority.
Luxury vehicles were sold following formal deregistration, with settlement of all outstanding circulation taxes.
Understanding the full scope of legal costs associated with Spanish property transactions is essential when planning asset disposals of this kind.
Fiscal settlement: IRNR, capital gains, and ITP
Our intervention covered the complete settlement of the Inheritance and Gift Tax (ISD) in the Valencian Community, filed using the official Modelo 650 with the Agència Tributària Valenciana.
We also filed the IRNR returns for capital gains from all property sales.
Per the AEAT’s published IRNR rate schedule, capital gains from property transfers by non-residents are taxed at a flat 19% rate, applicable to both EU and non-EU heirs alike.
The sale triggered the mandatory 3% withholding on the sale price, paid by the buyer to AEAT via Modelo 211 within one month of the transfer.
The final capital gains liability was then declared and reconciled via Modelo 210 within the statutory deadline.
We also confirmed the correct application of the VAT exemption on second-hand residential property transfers and the reduced ITP rate of 9% in force from 1 June 2026 under Ley 5/2025.
Our team also reviewed exposure under the Solidarity Tax on Large Fortunes and confirmed all Spanish tax deadlines were met throughout.
| Tax/filing | Rate | Official form | Deadline (non-residents) |
|---|---|---|---|
| Inheritance and Gift Tax (ISD) — Valencian Community | 0% effective (Groups I and II); 25% reduction for Group III from June 2026 | Modelo 650 (ATV) | 6 months from date of death |
| IRNR — capital gains on property sale | 19% flat rate on net gain (all non-residents) | Modelo 210 (AEAT) | 3 months after the 1-month withholding period |
| Buyer withholding at the point of sale | 3% of the sale price (advance against IRNR) | Modelo 211 (AEAT) | 1 month from date of transfer |
| Property Transfer Tax (ITP) — Valencian Community | 9% from 1 June 2026 (properties <€1M); 11% above €1M | Modelo 600 (ATV) | 30 working days from the deed |
Sources: AEAT – IRNR rates · ATV – Sucesiones y Donaciones · BOE – Ley 5/2025
Banking coordination and secure fund transfer
Once all sale contracts were signed and proceeds deposited into our Spanish client account, we arranged secure international transfers to Belgium in full compliance with Spanish anti-money laundering legislation.
Full documentation was provided to banking institutions in both countries, enabling transparent repatriation of funds.
Non-residents managing cross-border tax obligations in Spain should note that undeclared international transfers can independently trigger AEAT investigations, making proper documentation at every stage essential.
Outcome: efficient resolution and client satisfaction
This case demonstrates our firm’s ability to manage complex international inheritances spanning civil, tax, notarial, and land registry law across multiple jurisdictions.
All assets were transferred or sold in accordance with the family’s wishes.
Inheritance tax was fully declared and paid with the Agència Tributària Valenciana.
Property titles were updated, and funds were repatriated transparently and in compliance with all applicable regulations.
For our clients, working with an experienced international inheritance lawyer in Spain delivered both legal certainty and genuine peace of mind, without ever needing to travel.
Get expert guidance on international inheritances with Delaguía y Luzón, your trusted international inheritance lawyer in Spain.
Whether you are dealing with real estate in Alicante, IRNR filings with AEAT, or the full settlement of a Spanish estate, our team manages every step, in multiple languages and without requiring you to travel.
Need expert guidance on international inheritance law in Spain?
Contact Delaguía y Luzón today for tailored advice.
- Email: felix.delaguia@delaguialuzon.com
- Phone: +34 963 74 16 57
