If you’ve inherited a property or other assets in Tenerife, the process can feel confusing, especially if you live abroad. This guide explains everything in clear simple terms.
Inheritance in Tenerife…What to Expect (and Why It’s Simpler Than You Might Think)
Not the most exciting topic, but one that matters. Especially if you’ve inherited a property here, or you’re planning ahead to make life easier for your family.
Here’s how inheritance works in Tenerife, explained in plain English, so you know what steps to take, what to expect, and what it means for UK, EU and non-EU residents.
Spanish System, Local Benefits
Inheritance in Tenerife follows Spanish law. That means it goes through a notary, needs some official paperwork, and often comes with a tax bill, even if the person lived elsewhere.
The good news? Tenerife has one of the most generous inheritance tax reductions in the country.
What is the 99.9% Tax Reduction?
Since late 2023, close relatives (children, spouses, parents, siblings, nieces and nephews) get a 99.9% discount on inheritance tax.
So in most cases, families pay next to nothing.
More distant relatives or non-family members don’t qualify, and the tax can jump up quite a bit, and that’s worth knowing.
Do You Need a Spanish Will?
Technically, no. You can inherit property in Tenerife using a foreign will. But … and this is a big but … having a Spanish will makes everything quicker, smoother, and cheaper for your heirs.
A Spanish will also lets you choose the law of your nationality. That matters if you want to avoid Spain’s “forced heirship” rules.
Quick Note on Forced Heirship…which actually sounds worse than it really is.
Spanish law automatically reserves a portion of your estate for your kids and certain family members. If you’d rather decide who gets what, you need to say … in writing … that your own national law applies.
No clause, no flexibility.
Who Actually Pays Inheritance Tax?
There are two main factors to consider:
- The relationship between the heir and the deceased
- Whether the asset is in Spain
Even if the person lived outside Spain, any property in Tenerife still needs to go through the Spanish system.
UK, EU and Non-EU Rules
- EU/EEA heirs: You get the full 99.9% reduction.
- UK heirs: Since Brexit, it’s more complex (isn’t it always with Brexit?) but most still qualify. Just expect a bit more paperwork.
- Non-EU heirs: Slightly stricter, but again, the final bill is often minimal.
Local advice helps here.
Step-by-Step: What To Do If Someone Dies Owning Property in Tenerife
Here’s the process in simple terms:
- Get the death certificate If it’s from abroad, it’ll need to be apostilled and translated officially.
- Request the “Certificate of Last Wills” This confirms if there’s a Spanish will.
- Locate the will Spanish or foreign. Foreign wills need legalising, which can delay things.
- Gather documents Passports, NIE numbers, deeds, bank details.
- Sign the inheritance deed Prepared by a Spanish notary. Can be signed in person or via power of attorney.
- File the inheritance tax (Modelo 650) Required within six months … even if nothing’s due.
- Pay the Plusvalía That’s a local council tax based on land value increases.
- Register the property in the heirs’ names The Land Registry updates the title, and you’re official.
Once that’s done, the property can be kept, rented or sold. You’re in control.
Thinking of Selling?
Many heirs do, especially if they live abroad or want to split the proceeds. Once inheritance is sorted, selling is straightforward.
A good local agent can help with valuations, utilities, paperwork — all the usual bits.
Quick Questions, Straight Answers
Do I need to travel to Tenerife?
No. Power of attorney works just fine, but bear in mind, it’ll need to be translated by an official translator and also stamped by the Hague Apostille.
How long does it take?
Usually 2 to 6 months, depending on how fast documents come together.
Do I need an NIE number?
Yes … everyone involved will need one.
Can multiple people inherit one property?
Yes. But it can complicate decisions around selling.
What if I inherit from abroad but live in Spain?
If you’re a Spanish tax resident, you may need to declare overseas assets (Modelo 720).
Need Help?
If you’re dealing with an inheritance here or thinking ahead … don’t leave it to guesswork. A quick chat with someone who knows the ropes can save you a ton of time (and cash).
Contact me here if you need help and recommendations.