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.

Inheriting a Holiday Rental (VV) Property in Tenerife

Many properties in Tenerife operate as holiday rentals under a “Vivienda Vacacional” (VV) licence. If you inherit one of these properties, you need to understand both the inheritance rules and the rental regulations. This guide explains how it works in simple terms.

Does the VV Licence Transfer to Heirs?

Yes — if the property already has a valid VV licence, it normally transfers to the heirs when they take ownership. However, the authorities must be notified of the ownership change.

Important:

New VV licences are currently restricted due to regulatory changes, so keeping an existing licence is valuable.

What Heirs Must Do

Notify the tourism department of the new owner
Update police registration details
Update tax declarations for rental income
Ensure the property meets updated VV standards

Can You Continue Renting Immediately?

Yes — as long as the VV licence is valid and the legal notifications have been made. Many heirs continue renting while deciding whether to keep or sell the property.

Taxes for VV Inheritance

Inheritance tax: usually almost zero
Plusvalía Municipal: applies as normal
Rental income tax: continues after inheritance

Non-residents must declare rental income quarterly.

Selling an Inherited VV Property

A VV licence can make the property more attractive to buyers. However, buyers must still follow the updated rental regulations. A professional valuation helps set the right price.