If you live outside Spain and have inherited a home in Marbella, your first question is likely to be how much tax you will pay. Andalusian rules can substantially reduce inheritance tax for close family members, sometimes leaving no tax to pay, depending on what each person inherits. The paperwork and deadlines still apply even when the tax due is zero.
Inheritance tax for non-residents
Each heir is taxed on what they receive. A non-resident is liable to Spanish inheritance tax on assets and rights located or exercisable in Spain, such as a home, a Spanish bank account or a car.
If you live abroad, you file the return with the Spanish Tax Agency, through its National Tax Management Office, using Form 650. The state handles the filing, but heirs can choose the regional rules available to them under the legal connecting factors. The first step in estimating the bill is therefore to identify the applicable autonomous community.
What changed for non-residents
In 2014, the Court of Justice of the European Union found that Spain's unequal treatment of certain cross-border inheritances breached EU law. Spain subsequently allowed residents of the EU and European Economic Area to use the relevant regional rules and extended that option to residents of non-EU countries in 2021.
Today, a non-resident heir can opt for the applicable regional rules regardless of where they live. This does not mean every estate is taxed alike: the relevant region, relationship to the deceased, value received and individual circumstances still determine the result.
Inheritance tax in Andalusia
If the deceased lived outside Spain, the regional rules available as an option are generally those of the autonomous community containing the greatest value of their Spanish assets. If the deceased lived in Spain, the relevant community is normally where they were habitually resident. If the Marbella home is their main Spanish asset, Andalusia will usually be the relevant region.
In Andalusia, children, grandchildren, spouses and parents within kinship groups I and II may qualify for a reduction of up to €1 million per heir and a 99% relief on the remaining tax bill, subject to the legal conditions. Siblings, nieces and nephews fall within group III. Their general reduction is smaller and they do not receive the 99% relief based on that kinship alone.
For a home, the starting point is its cadastral reference value on the date of death, where one exists. If the heirs declare a higher value, that higher figure applies. Check the reference value and the other valuation rules before calculating the tax.
When a foreign national leaves assets in Spain
Who inherits is a separate question from how the estate is taxed. The EU Succession Regulation does not govern taxes. As a general rule, succession is governed by the law of the country where the deceased habitually lived; this may be a country outside the EU. A person may instead choose the law of their nationality in a will.
The notary or legal professional handling the estate should establish which succession law applies. Even when foreign law determines the heirs, assets subject to Spanish inheritance tax must be declared in Spain.
How to settle an inheritance in Spain
One of the first documents to check is the Spanish certificate of last wills. It shows whether the deceased made a will before a Spanish notary and, if so, which notary holds it. You can request the certificate after 15 working days have passed since the death. If there is a foreign will or no Spanish will, the relevant foreign succession documents may also be needed.
Inheriting a home generally involves preparing the succession documents and signing a deed of acceptance and distribution of the estate before a notary. A foreign heir needs a Spanish tax identification number, usually an NIE, which can be requested in Spain or through a Spanish consulate. Once the succession documentation is complete and the tax return filed, the title can be registered in the Property Registry. Registration is advisable for proving ownership to third parties.
The general deadline for Form 650 is six months from the death. You may request a further six months, provided you apply during the first five months; interest accrues during the extension. Municipal capital gains tax, commonly called plusvalía municipal, may also apply to the transfer of urban land where there is a taxable increase in value. For an inheritance, its ordinary deadline is six months, extendable to one year on request.
Inheriting in Spain without travelling
You do not always need to travel to sign documents. A representative can deal with the Spanish formalities covered by a valid power of attorney. This allows you to manage an inheritance from abroad, provided the documents and authority are suitable for your case.
If you live in the UK, for example, a power signed before a British notary may be used in Spain with a Hague Apostille and, where required, an official Spanish translation. You can also ask about granting a power through a Spanish consulate. Choose the representative carefully and state exactly what they may do, especially whether they may sell the property.
Keep, rent out or sell the inherited home
The choice depends mainly on how much you will use it. If you keep the home for holidays, you will still pay annual expenses such as property tax (IBI), community charges, utilities and maintenance. As a non-resident, you will normally declare imputed property income on Form 210 for the periods when the home is at your disposal, even if it produces no rent.
Renting it out can generate income, but means managing tenants from abroad and declaring the rental income in Spain. Selling may be simpler if no one in the family will use it. A sale is taxed differently for non-residents, as we explain in our guide to selling property in Spain as a non-resident.
How Inmolux Group can help
Inmolux Group combines estate agency, investment development and project management with a team that speaks eight languages. When you appoint us to sell, we review the property register, planning position, debts and potential legal issues before the home goes to market. We then propose a price based on a professional valuation and comparable transactions.
Have you inherited a property on the Costa del Sol? Tell us where it is and what you are considering. We will give you our view of its price, likely timescale and the best way to present it for sale.
General information reviewed on 8 October 2026. It does not replace legal and tax advice tailored to your circumstances.
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