Inheritance and succession tax in the Balearics for foreign residents and owners: which law applies, where tax is paid and deadlines

The summary in one table

Which law applies to a foreigner’s estate

Spain applies ((eu_reg650|Regulation (EU) No 650/2012)) to the estates of people who die on or after 17 August 2015 (arts. 83 and 84). Its main rules:

• General rule. The law governing the whole estate is that of the State where the deceased had their habitual residence at the time of death (art. 21(1)). If, exceptionally, it is clear that they had a manifestly closer connection with another State, that State’s law applies (art. 21(2)).
• Choosing your national law. Anyone may choose the law of the State whose nationality they hold at the time of choosing or at death. The choice must be made expressly in a disposition of property upon death, or follow from its terms (art. 22). With several nationalities, you may choose any of them.
• One law for everything. The designated law governs the whole estate, including assets in another country: who the heirs are, their shares, debts, the freely disposable portion and forced shares (art. 23).
• Universal application. The designated law applies even if it is not the law of an EU State (art. 20). A Spanish court or notary may therefore apply English or German law, and a British person living in Mallorca would in principle be subject to Spanish law unless they chose another.

What the rule does not settle: if the applicable law is that of a country with several legal systems, such as the United Kingdom or Spain, that country’s internal rules decide which territory’s law applies (art. 36). If Spanish law applies, it must also be established which of Spain’s civil law systems is meant (for example, the Balearic one). A lawyer or a notary should clarify this case by case. The Regulation covers the civil law of succession; the tax follows other rules, set out below.

The European Certificate of Succession

The Regulation creates the European Certificate of Succession so that heirs, legatees and executors can prove their status in another Member State (arts. 62 and 63 of the Regulation). Key points:

• Using it is optional, and it does not replace national documents (art. 62).
• It is issued by the authority of the State whose courts have jurisdiction, in general the State of the deceased’s last habitual residence (arts. 4 and 64).
• It takes effect in the other Member States without any special procedure, and it is presumed to prove what it records (art. 69).

It is intended for use in another Member State, for example Germany. For documents to be used in the United Kingdom, which is no longer a Member State, ask a lawyer there. The Spanish Tax Agency accepts a certified copy of the certificate instead of the death certificate and the will or declaration of heirs, translated into Spanish Tax Agency FAQ. To find out how to apply for one in Spain, ask a notary.

Wills in Spain and the register of last wills

Making a will in Spain is straightforward. According to the General Council of Notaries, you go to the notary with your ID, explain your family situation and how you want your assets divided, the notary drafts it in line with the law, you sign, and the notary keeps the original. The notary then reports it to the General Register of Last Wills (Registro General de Actos de Última Voluntad) of the Ministry of Justice, so that your family can find the most recent will, which is the valid one.

• Choosing your national law. If you want your nationality’s law to apply, it must be stated expressly in the will (art. 22 of the Regulation). It is wise to have a professional draft it; this is practical advice from this guide.
• Wills made in another country. A written will is valid as to form if it complies with the law of any of several States, including the State where it was made or that of the testator’s nationality, domicile or habitual residence (art. 27). In practice, though, the Tax Agency also asks for the certificate from the Spanish register of last wills, even if it is negative Tax Agency.
• Finding out whether there is a will. With the death certificate, you ask the register for the last-wills certificate, which says whether there is a will, before which notary and on what date. You can request it yourself or through a notary Notaries. According to the Ministry of Justice, anyone, Spanish or foreign, who needs to know can request it in person, by post or online, and the register also legalises certificates that will be used outside Spain.
• A copy of the will. You ask the notary who holds it; they will give it if you are named in it or the law recognises your right to inherit.
• If there is no will. A declaration of heirs (declaración de herederos) before a notary is needed. In general, the competent notaries are those where the deceased habitually lived, where most of their assets were, where they died, or in a neighbouring district Notaries.

Where the tax is paid: it depends on where the deceased and the heir live

Inheritance tax applies to what individuals receive free of charge by inheritance or legacy, and each heir or legatee pays their own share Tax Agency. It arises on the day of death Act 29/1987, art. 24. If the heir lives in Spain, they are taxed on everything they receive wherever it is; if not, only on what is located in Spain (arts. 6 and 7). Who counts as resident follows the income tax (IRPF) rules, explained in the guide tax residence.

The Tax Agency summarises who manages the tax and which rules apply, under Act 22/2009, art. 32 and the second additional provision of Act 29/1987:

These rules come from the judgment of the Court of Justice of the EU of 3 September 2014 (case C-127/12), which Spain incorporated in the second additional provision. The Tax Agency explains that residents of the EU and the EEA, and also of third countries, may choose the regional rules, in other words everyone FAQ. So an heir living in Germany or the United Kingdom who inherits from someone resident in the Balearics can ask for the Balearic rules to be applied, even if they file the papers with the state Tax Agency. One exception: life insurance that is not part of the estate is taxed by the State and under state rules only.

The country where the heir lives, or where the deceased lived, may also have its own inheritance taxes. This guide covers only the Spanish tax: if you have ties to two countries, ask a tax adviser with experience in both.

What tax advantages the Balearics offer

The advantages are in Legislative Decree 1/2014, the consolidated text on the ceded taxes of the Balearic Islands (on the BOE, consolidated text updated on 13 June 2026). The Balearic reductions improve on those set by the State. This guide gives no amounts or percentages because they change: read them in the rules currently in force, or ask the ATIB. They apply to anyone taxed under the Balearic rules, resident or not.

• Reduction by family relationship (art. 21). There are four groups: I, descendants under 21; II, descendants aged 21 or over, spouses and ascendants; III, second- and third-degree collateral relatives, and ascendants and descendants by marriage; IV, fourth-degree collateral relatives, more distant relatives and unrelated people. Each group has a different reduction.
• Reduction for disability (art. 22), added to the family one according to the degree.
• Reduction for the deceased’s main home (art. 23). It applies to a spouse, ascendants and descendants, and certain collateral relatives over 65 who lived with the deceased. It has a limit and conditions, including keeping the home for a period.
• Other reductions for life insurance, family businesses, shareholdings, farms and historic heritage (arts. 24 to 32).
• Tax credit on the amount due. The current text allows a credit for groups I and II (art. 36) and a smaller one for group III collateral relatives (art. 36 bis). The percentage has been amended several times (most recently in 2025), so always check it in the current version. To apply it, where there is real estate, the deed must state a value that does not exceed the Cadastre reference value plus a margin (or the market value if there is no reference value), and the credit does not exempt you from filing the self-assessment.

The text speaks of spouses. If the deceased lived with an unmarried partner, ask the ATIB or a tax adviser how your case is treated. We also have not checked whether groups III and IV have further benefits outside the articles cited.

Deadlines: six months and one extension

• Six months from the date of death. This is the deadline to file and pay the self-assessment tax regulations, art. 67, and it is the same in the Balearics ATIB and at the state Tax Agency FAQ.
• Extension of another six months. It is requested within the first five months, with the death certificate and details of the heirs and the assets. If there is no reply within a month, it is deemed granted; if requested after the five months, it is not granted. The extension carries late-payment interest from the end of the six months until filing (art. 68).
• If the deadline passes with nothing filed, the tax office may assess the tax from the data it has, in addition to any penalties (art. 68(7)).

What happens if you do not file: documents subject to the tax are not admitted and have no effect in public offices or registers until it is shown that they were submitted for assessment Act 29/1987, art. 33. In practice, the Land Registry will not register the house in the heirs’ names until then.

There is some relief too: heirs can ask for a partial assessment of the tax solely to collect life insurance or the deceased’s claims, or to withdraw money and securities held on deposit, which then counts as a payment on account (art. 35).

Practical advice from this guide: the six months run from the date of death, even if the papers have to come from Germany or the United Kingdom. If you expect delays, request the extension early: it cannot be granted after the fifth month.

Forms and documents

If the ATIB handles it (Balearics)

For inheritances, the ATIB lists forms 660/661 (list of the estate’s assets), 650, 654 and 655 (self-assessment: 650 is the general one, and 654 and 655 are simplified versions, individual and joint) and 653 (consolidation of ownership when a usufruct ends) ATIB: deadlines and forms, list of forms. The ATIB offers help programs to fill them in and filing through its online office. We could not check the list of documents the ATIB requires: get it from the ATIB itself.

If the state Tax Agency handles it (non-resident heirs or deceased)

The forms are 650 (inheritances), 651 (gifts) and 655 (consolidation of ownership) Tax Agency. Note that number 655 does not mean the same thing at the ATIB and at the Tax Agency. According to the FAQ:

• You can file on paper, only at the National Tax Management Office in Madrid (by appointment), with the help program, or online with an electronic certificate or Cl@ve.
• Documents: the deed of acceptance of the inheritance (or, failing that, an inventory of assets and heirs); the death certificate; the certificate from the Spanish register of last wills, even if negative; the will or declaration of heirs; and the heirs’ tax number.
• Foreign documents need the Hague apostille and a sworn translation. With a European Certificate of Succession you provide a certified copy translated into Spanish, with no sworn translation.
• Heirs who do not live in another EU or EEA State with mutual tax assistance (a British person, for example) must appoint a representative resident in Spain. A German living in Germany is not required to.
• You can ask to defer or pay in instalments.

The heirs’ NIE

Each heir needs a tax identification number to file the tax: the Tax Agency asks for a copy of the heirs’ tax number. If you are a foreigner and do not have one, you can request the NIE from the National Police (form EX-15) when you have economic, professional or social ties with Spain. You must give the reason, which here would be the inheritance. The fee is form 790, code 012. The decision must arrive within five days, and if you are outside Spain you apply through the consulate National Police.

Apply early: without it the self-assessment cannot be filed, and the deadline runs from the date of death. More on this step in the guide NIE and first steps. If you cannot travel, a power of attorney lets someone act for you.

When a notary, lawyer or tax adviser is worth it

This is practical advice, not an official list.

• A notary is almost always needed: for the will, for the declaration of heirs and for the deed of acceptance and allocation of the inheritance, which the Tax Agency asks for. You can freely choose your notary Notaries.
• A lawyer is worth it when there are assets or heirs in more than one country, when you are unsure which law applies, when there are doubts about forced shares or disagreement among the heirs, or when there is no will. Check that they are a registered member ICAIB.
• A tax adviser or gestoría is worth it to calculate and file the self-assessment, compare state and Balearic rules, and avoid missing deadlines or the extension.
• When everything is simple (one country, a will with a Spanish notary, heirs living in the Balearics), the notary and, if you wish, a gestoría are enough. As soon as two countries are involved, a lawyer from the start is advisable, before the first months go by.

How to put it all in order

These steps are a practical order from this guide, not an official list:

1. Request several copies of the death certificate.
2. Request the last-wills certificate and, if there is a will, a copy from the notary.
3. Find out where the deceased and the heirs lived: that decides who collects the tax (table above).
4. Apply for the NIE for heirs who do not have one.
5. If you need more time, request the extension before the fifth month ends.
6. Sign the deed of acceptance of the inheritance.
7. File and pay the self-assessment, using the right forms.
8. Register the assets in the heirs’ names with proof that the tax was filed.

This guide is general information, with official sources at the end, and does not replace professional advice. To find professionals who work in German or English, see notaries, lawyers and tax advisers.

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Sources and date checked

Official sources checked on 24 October 2026. Procedures, requirements and amounts change: always check the source before you act.

• EUR-Lex (Unión Europea): Regulation (EU) No 650/2012 on succession and the European Certificate of Succession
• BOE: Act 29/1987 on Inheritance and Gift Tax
• BOE: Royal Decree 1629/1991, Inheritance and Gift Tax Regulations, arts. 67 and 68
• BOE: Act 22/2009 on regional financing, art. 32
• BOE: Legislative Decree 1/2014, consolidated text on ceded taxes of the Balearic Islands (inheritance)
• ATIB: Filing deadlines and forms for inheritance tax
• ATIB: List of tax forms (650, 653, 654, 655, 660, 661)
• Agencia Tributaria: Inheritance and Gift Tax (non-residents): forms 650, 651 and 655
• Agencia Tributaria: Inheritance and Gift Tax (non-residents): frequently asked questions
• Agencia Tributaria: Table of competence and applicable rules, State / regions (inheritance)
• Consejo General del Notariado: How can I find out whether I have been left an inheritance?
• Consejo General del Notariado: Making a will before a notary: steps and custody
• Ministerio de Justicia: General Register of Last Wills
• Policía Nacional: NIE assignment on request (EX-15)
• Consejo General del Notariado: Can I choose any notary?
• ICAIB: ICAIB register of members

General information. It does not replace the advice of a professional.