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.

Capital Gains Tax When Selling an Inherited Property in Tenerife

If you decide to sell an inherited property in Tenerife, Capital Gains Tax (CGT) may apply.

That said, many heirs end up paying very little… and sometimes nothing at all.

It all comes down to the difference between the property’s value at the time of inheritance and the price it eventually sells for.

When Capital Gains Tax Applies

CGT only applies if the property sells for more than the value declared during the inheritance.

In simple terms, the tax is calculated on the profit between:

The inheritance valuation
The final sale price

If the property sells for roughly the same amount it was valued at during inheritance, there may be little or no gain to tax.

The CGT Rate for Non-Residents

For non-residents, including most foreign property owners, the current Capital Gains Tax rate is 19% on the profit.

This applies to owners who live outside Spain but sell property located here.

The 3% Retention Rule

When a non-resident sells property in Spain, the buyer must withhold 3% of the sale price and pay it directly to the Spanish tax office.

This isn’t an extra tax. It’s simply a payment on account of the final CGT calculation.

After the sale:

If the actual CGT is lower than 3%, you can reclaim the difference
If the CGT is higher than 3%, you pay the remaining balance

Expenses That Can Reduce CGT

Certain costs can be deducted when calculating the final gain.

These may include:

Notary fees
Legal fees
Inheritance costs
Property improvements, provided you have invoices

These deductions reduce the taxable profit and therefore the final tax bill.

Why Many Heirs Pay Very Little

In many cases, the inheritance value is already close to the current market value.

So if the property is sold fairly soon after inheriting it, the difference between those two figures is often quite small.

Which means the Capital Gains Tax bill tends to be small as well.

The key is declaring a realistic property value during the inheritance process.

Get that figure right, and the tax position later usually stays manageable.