Many expats who own property in Tenerife also have assets in their home country — such as bank accounts, pensions, investments or other properties. This can make inheritance feel complicated, but the rules are straightforward once you understand how Spain treats multi-country estates.
Your Tenerife Property Is Always Taxed in Spain
No matter where the deceased lived, any property or assets in Tenerife must go through the Spanish inheritance process. This includes completing the inheritance deed and filing taxes (even if the tax due is zero).
Foreign Assets Follow Their Own Country’s Rules
Assets located outside Spain will follow the inheritance laws and tax rules of the country where they are held. This is why multi-country estates often involve two legal systems.
A common example:
- UK assets → handled by UK probate
- Tenerife property → handled in Spain
- Heirs may pay tax in both countries (with credits to avoid double tax)
The Importance of Choosing Your National Law
If you live in Spain, you should make a Spanish will choosing the inheritance law of your home country. This avoids forced heirship and makes multi-country inheritance much smoother.
You Can Inherit Abroad as a Tenerife Resident
If you live in Tenerife and inherit assets abroad, you may need to declare them on Modelo 720 (foreign asset report). This is separate from inheritance tax and must not be ignored.
Professional advice helps you avoid double taxation and unnecessary delays when dealing with assets in more than one country.
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