Not all inherited properties in Tenerife are debt-free. Mortgages, personal loans and unpaid bills can all transfer to the heirs. This guide explains what happens to debts when you inherit property and what options you have.
Do Debts Transfer to Heirs?
Yes — when you accept an inheritance in Tenerife, you accept both the assets and the debts. This includes mortgages, bank loans and even unpaid community fees. This is why checking the Nota Simple early is essential.
What Happens to an Existing Mortgage?
There are three main options:
- Keep the mortgage – The heirs continue payments.
- Pay it off – The heirs settle the mortgage from savings or sale proceeds.
- Sell the property – The mortgage is cleared automatically during the sale.
Most heirs living abroad choose to sell the property and use the sale money to clear the mortgage.
Community Fees and Local Taxes
Unpaid community fees, rubbish tax (basura) or council tax (IBI) remain attached to the property, not the deceased. These must be paid before selling or transferring ownership.
Good news
Most debts are small and easy to resolve. Even if the mortgage is large, selling the property usually clears everything without added cost to heirs.
Personal Loans or Other Debts
If the deceased had personal loans, credit cards or other debts, these may also need to be settled during the inheritance process. A lawyer can check whether any claims exist before the inheritance is finalised.
If the Debts Are Too High: “Renouncing the Inheritance”
Spanish law allows heirs to reject an inheritance if debts exceed the value of the assets. This is rare in Tenerife, but the option exists if needed.
Worried About Debts on an Inherited Property?
Most debts are easy to resolve, and many can be paid directly from the sale of the property. If you’re unsure what you’ve inherited, getting clear advice early prevents surprises later.
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