> Last updated according to the relevant sources on 2026-11-04. General information, not legal advice. # Living in Spain and Inheriting From the UK: Inheritance Tax Source: https://crossborderestate.com/guides/inheritance-tax-heirs-living-in-spain/ Published: 2026-11-04. Last updated: 2026-11-04. Topics: Inheritance tax. **General information, not legal advice.** General information about inheritance tax for heirs who live in Spain under the law of England and Wales and Spain as at 20 October 2026. Not legal advice; no lawyer-client relationship. Other laws may apply and the law changes. Take advice from a qualified lawyer in the relevant jurisdiction before acting. CrossBorder Estate is not a law firm. **General information, not tax advice.** General information on Spanish inheritance tax (ISD) and UK inheritance tax for deaths in 2026 (Spain) and the 2026/27 UK tax year, assuming the heir is resident in Spain. Rates change. Not tax advice: confirm with a qualified adviser or the relevant tax authority. ## The short answer An heir who lives in Spain pays Spanish inheritance tax (ISD) on everything inherited, wherever the assets are, including a house, bank account or investments in the UK (art. 6 Ley 29/1987). Where UK inheritance tax was also paid on assets outside Spain, the heir can deduct it from the Spanish tax, up to the Spanish tax on those assets (art. 23 Ley 29/1987). The return is due within six months of the death; an extension can be requested within the first five months (RD 1629/1991 arts 67 and 68). If the deceased lived outside Spain, the heir files with the State tax agency (AEAT) and applies the rules of the region holding most of the Spanish assets, or the heir's own region if there are none (Ley 29/1987, second additional provision). ## The Legal Snapshot The Spanish tax follows where the heir lives; where the deceased lived decides which region's rules apply and where the return goes. UK inheritance tax follows the deceased's position, not the heir's. ### Deceased lived in the UK, heir lives in Spain, UK assets only - Applicable law: The heir is taxed in Spain on everything inherited (art. 6 Ley 29/1987), under the rules of the heir's own region, as there are no Spanish assets (Ley 29/1987, second additional provision). - Tax exposure: Spanish ISD on the whole inheritance, filed with the AEAT (Ley 22/2009, art. 32). UK inheritance tax on the UK estate. - Notes: The UK tax paid on the same assets is deducted from the Spanish tax, up to the Spanish tax on those assets (art. 23 Ley 29/1987). ### Deceased lived in the UK and owned a home in Spain, heir lives in Spain - Applicable law: The heir is taxed in Spain on everything inherited (art. 6 Ley 29/1987), under the rules of the region where most of the Spanish assets are by value (Ley 29/1987, second additional provision). - Tax exposure: Spanish ISD on the UK and Spanish assets, filed with the AEAT. UK inheritance tax on the Spanish home only if the deceased was a long-term UK resident (deaths from 6 April 2025). - Notes: The Spanish credit covers only assets outside Spain (art. 23.1(b) Ley 29/1987). For the Spanish home, any credit comes from the UK side (IHTA 1984 s.159). ### Deceased lived in Spain, heir lives in Spain - Applicable law: The heir is taxed in Spain on everything inherited (art. 6 Ley 29/1987). The tax is handed over to the region where the deceased lived, and that region's rules apply (Ley 22/2009, arts 32.2(a) and 32.5). - Tax exposure: Spanish ISD on all assets, filed with the tax office of the deceased's region. UK inheritance tax on UK assets, and on assets elsewhere if the deceased was still a long-term UK resident. - Notes: The deceased's region is the one where they spent the most days in the five years before the death (Ley 22/2009, art. 28). ## Last updated Last updated according to the relevant sources on 2026-11-04. The statements are drafted from the primary legal sources listed below. This is general information, not legal or tax advice. Written by Roman P. with AI assistance; checked against the sources listed. Roman P. writes the guides on CrossBorder Estate, published by ASPECTERRA LIMITED. Each statement is checked against the primary sources listed on the page. ## How Spain taxes an heir who lives in Spain An heir who is tax resident in Spain is taxed on everything acquired by inheritance, wherever the assets are: Spanish property, a house in England, UK bank accounts and investments alike (Ley 29/1987 art. 6.1). Residence for this tax follows the Spanish income tax rules (art. 6.2). The heir's nationality and the deceased's residence do not change this. This is the opposite of the position of an heir who lives outside Spain, who is taxed only on assets in Spain (art. 7 Ley 29/1987). Spanish succession tax on worldwide assets is an accurate description for an heir who lives in Spain, not for an heir in the UK. The tax falls on what each heir receives, after deductible debts and charges (art. 9 Ley 29/1987), and is fixed on the day of death (art. 24.1). The Spanish tax authority has accepted a deed of variation made under the English rules for the Spanish tax: the heir is taxed on what is received after the variation (DGT consulta V0222-25, 25 February 2025). ## Which region's rules apply, and where the return is filed Which region's rules apply, and which office receives the return, depends on where the deceased lived. If the deceased lived in Spain, the tax belongs to the region where the deceased lived at the death, and the return goes to that region's tax office (Ley 22/2009, arts 32.2(a) and 54.1(b)). That region is the one where the deceased spent the most days in the five years before the death (Ley 22/2009, art. 28). If the deceased lived outside Spain, the tax is not handed over to any region, and the heir files a self-assessment with the State tax agency (AEAT) (Ley 22/2009, art. 32.2(a); Ley 29/1987, second additional provision). The heir still applies regional rules: those of the region where the greatest value of the Spanish assets is, or, if the estate has nothing in Spain, those of the heir's own region (Ley 29/1987, second additional provision). Regional reliefs for close family differ from region to region; the general picture is in the guide on Spanish inheritance tax for UK residents. This guide gives no regional figures. ## Deadlines for the Spanish return The Spanish return is due within six months of the day of death (RD 1629/1991 art. 67.1(a)), not from the UK grant of probate. An extension (prórroga) of up to six more months can be requested within the first five months; it is treated as granted if the office does not answer within a month, and late-payment interest runs during the extension (art. 68). UK inheritance tax is due six months after the end of the month of death (IHTA 1984 s.226(1)), so the two dates are counted differently. A late return still has to be filed. Without a prior request from the tax office, the surcharge is 1% plus 1% for each full month of delay up to 12 months, then 15% plus late-payment interest; it is cut by 25% if paid promptly (Ley General Tributaria art. 27). Some regional reliefs are lost if the return is late. ## UK inheritance tax and the Spanish credit for it UK inheritance tax depends on the deceased, not the heir. UK assets are generally within it. A few are not when the deceased was not a long-term UK resident, such as holdings in UK authorised unit trusts and open-ended investment companies (IHTA 1984 s.6(1A)). For deaths on or after 6 April 2025, assets outside the UK, such as a Spanish home, are within it only if the deceased was a long-term UK resident: broadly, UK resident for at least 10 of the previous 20 tax years. Someone who has left the UK stays within scope for a period of 3 to 10 years (GOV.UK, long-term UK resident guidance). Long-term UK residence is the test that replaced domicile for UK inheritance tax on 6 April 2025; for earlier deaths the old domicile test applies. There is no inheritance tax treaty between the UK and Spain (HMRC IHTM27161). Double taxation relief comes from each country's own rules. Spain's is the deduction for international double taxation (deducción por doble imposición internacional), available only to heirs taxed on everything because they live in Spain. The heir deducts the lower of the foreign tax actually paid on the same inheritance and the Spanish average effective rate applied to the assets outside Spain that were taxed abroad (art. 23.1 Ley 29/1987). In a binding answer of 25 February 2025, the Spanish Directorate-General for Taxes (DGT) applied this credit to UK inheritance tax: an heir living in Spain who inherited from a person resident in England could deduct the share of the UK tax that the heir paid (DGT consulta V0222-25). The texts read do not say how UK tax paid by the executors out of the estate, before distribution, is attributed to each heir for this credit; that point is open. The Spanish credit covers only assets outside Spain (art. 23.1(b) Ley 29/1987). Where UK tax also falls on a Spanish asset, the UK gives a credit for the Spanish tax on it, up to the UK tax on that asset (IHTA 1984 s.159). If the UK tax has not been paid in full when the Spanish return is filed, the full credit cannot be taken in that return. Once the UK tax is paid, the heir can ask for the return to be corrected and the excess refunded (DGT consulta V2940-23, 6 November 2023; Ley General Tributaria art. 120.3). The DGT has accepted the foreign authority's payment letter, or other evidence of payment, as proof (DGT consulta V0010-10, 14 January 2010). ## Common errors about heirs who live in Spain "Spain only taxes Spanish assets." Only for heirs who live outside Spain (art. 7 Ley 29/1987). An heir who lives in Spain is taxed on everything inherited, wherever it is (art. 6). "There is a UK-Spain treaty that removes double inheritance tax." There is none (HMRC IHTM27161). Relief comes from Spain's credit for heirs who live in Spain (art. 23 Ley 29/1987) and the UK's own credit (IHTA 1984 s.159). "With no treaty, Spain gives no credit for UK tax." Spain gives a credit to heirs who live in Spain under its own law, and the DGT has applied it to UK inheritance tax (art. 23 Ley 29/1987; DGT consulta V0222-25). "The tax is paid to the region where the property is." The return goes to the region where the deceased lived, or to the AEAT if the deceased lived outside Spain (Ley 22/2009, art. 32.2(a)). "The six months start when the UK grant is issued." They run from the day of death (RD 1629/1991 art. 67.1(a)). ## Legal sources cited - Ley 29/1987 del Impuesto sobre Sucesiones y Donaciones, arts 3, 6, 7, 9, 23, 24 and second additional provision (Spain): Tax on heirs resident in Spain, credit for foreign tax, accrual at death, regional rules where the deceased lived abroad - Ley 22/2009, arts 28, 32 and 54 (Spain): Region of residence; tax handed over to the deceased's region, otherwise filed with the AEAT - Real Decreto 1629/1991 (Reglamento del ISD), arts 67 and 68 (Spain): Filing period and extension - Ley 58/2003 General Tributaria, arts 27 and 120 (Spain): Late-filing surcharges; correcting a return and claiming a refund - DGT consultas V0222-25 (25 February 2025), V2940-23 (6 November 2023) and V0010-10 (14 January 2010) (Spain): Credit for UK inheritance tax and deed of variation; credit when the foreign tax is paid later; proof of foreign payment - Inheritance Tax Act 1984, s.6 (United Kingdom): Excluded property exceptions for non-long-term UK residents (authorised unit trusts and open-ended investment companies) - Inheritance Tax Act 1984, s.159 (United Kingdom): Unilateral credit for foreign tax - Inheritance Tax Act 1984, s.226 (United Kingdom): UK inheritance tax due date - HMRC Inheritance Tax Manual IHTM27161 (list of estate tax conventions) (United Kingdom): No UK-Spain inheritance tax convention - GOV.UK: Inheritance Tax if you're a long-term UK resident (United Kingdom): Long-term residence test from 6 April 2025 ## Related guides - [Spanish Inheritance Tax for UK Residents Inheriting Assets in Spain](https://crossborderestate.com/guides/spanish-inheritance-tax-uk-residents.md) - [Inheritance Tax Before Probate: What a UK–Spain Estate Pays First](https://crossborderestate.com/guides/paying-inheritance-tax-before-probate-uk-spain.md) - [Spanish Forced Shares and a UK Will: When the Children Can Claim](https://crossborderestate.com/guides/forced-heirship-spain-uk-will.md)