Inheriting Bank Accounts and Money in Tenerife: What You Need to Know

Inheriting a bank account in Tenerife is usually simpler than inheriting property, but there are important steps to follow. This guide explains how to access the funds, what documents you’ll need and what taxes apply.

Bank Accounts Are Frozen After Death

Spanish banks automatically freeze the account when they are notified of the death. This is normal and prevents withdrawals until the legal process is completed.

How to Release the Funds

The bank will require:

• The inheritance deed (Escritura de Herencia)
• Heirs’ passports and NIEs
• Death certificate
• Certificate of Last Wills
• Proof that inheritance tax has been filed

Do You Pay Tax on Bank Account Inheritance?

Bank balances are included in the inheritance tax calculation. But with the 99.9% reduction in the Canary Islands, most families pay almost nothing.

If the Heir Lives Abroad

Funds can be transferred to an international account once the inheritance is completed. Banks may request proof of identity and tax residency to comply with anti-money-laundering rules.

Shared Bank Accounts

If the account had two holders, the surviving holder usually maintains access to half the funds while the other half becomes part of the estate.