Do I have to pay inheritance tax in Tenerife?

Most close relatives receive a 99.9% inheritance tax reduction in Tenerife. This means spouses, children, parents, siblings and grandchildren usually pay almost no tax.

Do I need to travel to Tenerife to complete an inheritance?

No. Most heirs sign a Power of Attorney and the entire process can be completed without travelling to Tenerife.

How long does Tenerife inheritance take?

Most Tenerife inheritance cases take between 1 and 3 months if the death occurred in Spain, or 3 to 6 months if it occurred abroad.

Can I sell an inherited property in Tenerife?

Yes, but only after the inheritance deed has been signed and the property is registered in the heirs' names. All heirs must agree to the sale.

What documents do I need for a Tenerife inheritance?

You need a death certificate, Certificate of Last Wills, the will (if any), passports, NIE numbers, property deeds, and bank information where applicable.

Inheritance in Tenerife

Capital Gains Tax When Selling an Inherited Property in Tenerife

Dec 9, 2025

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simonsg44

in Uncategorized

If you decide to sell an inherited property in Tenerife, you may need to pay Capital Gains Tax (CGT). Understanding how this tax works helps you plan the sale and avoid surprises.

Do You Always Pay Capital Gains Tax?

Only if the property is sold for more than its declared inheritance value. CGT is based on the profit made between the inheritance valuation and the sale price.

CGT Rates in Spain

For non-residents (including UK citizens), the CGT rate is a flat 19%.

The 3% Retention

When a non-resident sells property in Spain, the buyer must withhold 3% of the sale price and pay it to the tax office. This is credited against your final CGT bill.

If your CGT is lower than 3%, you can reclaim the difference. If it’s higher, you pay the balance.

Deductions and Expenses

You can reduce your CGT by deducting:

Notary fees
Inheritance costs
Legal fees
Property improvements (with invoices)

Good News for Heirs

Because the inheritance value is usually close to the current market value, many people end up paying very little or no Capital Gains Tax when selling shortly after inheriting.