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.

How to Value a Tenerife Property for Inheritance Tax: Simple Guide

When you inherit a property in Tenerife, one of the first things you’ll need to do is declare its value for tax purposes.

On the surface, that sounds simple.

But the number you declare can have an impact later, particularly if the property is sold. That value effectively becomes the starting point for future Capital Gains Tax, so it’s worth taking a moment to get it right.

Here are the three ways property values are usually determined.

1. The Tax Value (Valor de Referencia)

Spain now uses a system called the Valor de Referencia.

This is a value calculated by the tax authorities using data from recent property sales in the area. In many cases, it acts as the minimum value you can declare for inheritance purposes.

Quite often it ends up being reasonably close to market value anyway.

You can check this figure online using the property’s cadastral reference number.

2. A Professional Market Valuation

Some families prefer to obtain a professional valuation.

This can be helpful if the property is unusual, recently renovated, or located in an area where prices vary widely.

It’s also useful if the heirs are considering selling the property soon and want a realistic view of its market value.

3. Looking at Comparable Sales

Another approach is simply looking at recent sales of similar properties nearby.

Estate agents often help with this, and it gives a good sense of what the property might realistically be worth.

It’s not a formal valuation, but it’s often enough to confirm whether the declared value makes sense.

Why the Declared Value Matters Later

The value declared during inheritance effectively becomes the property’s “purchase price” for tax purposes.

If the property is sold later, Capital Gains Tax is calculated based on the difference between:

The inheritance value
The final sale price

A realistic valuation now can sometimes reduce the tax bill later.

A Common Mistake

Some people assume declaring a very low value will reduce inheritance tax.

In the Canary Islands, inheritance tax is often minimal anyway.

So lowering the value rarely saves much… but it can create a larger Capital Gains Tax bill when the property is eventually sold.

In most cases, declaring a sensible, realistic value from the start avoids that problem.