International succession practice in Spain has become particularly complex in relation to British nationals resident in Spanish territory following the United Kingdom’s withdrawal from the European Union. Although the European Parliament and the Council of the European Union adopted Regulation (EU) 650/2012 to unify the criteria governing jurisdiction and applicable law in succession matters, the United Kingdom never participated in that instrument, giving rise to a technically hybrid situation whose complexity is not strictly speaking a direct consequence of Brexit, but rather a pre-existing structural feature.
From the Spanish perspective, the Regulation continues to apply where the deceased had his or her habitual residence in Spain at the time of death, even where that person held British nationality. In principle, this allows the testator to choose English national law under Article 22 of the Regulation. However, the extent to which this professio juris is effective may be limited by the mandatory provisions of Spanish or Catalan civil law, particularly those relating to forced heirship (legítimas).
Things become even more complicated where the estate includes immovable property situated in Spain and beneficiaries resident in different jurisdictions. In such cases, close coordination is needed between Spanish notaries, British probate solicitors, and tax authorities to avoid double taxation, registration difficulties, and cross-border tax overlaps.
From a tax perspective, the principal difficulty stems from the lack of harmonisation between Spanish Inheritance and Gift Tax (Impuesto sobre Sucesiones y Donaciones) and British Inheritance Tax. No bilateral treaty exists between Spain and the United Kingdom to prevent double taxation in succession matters; Spain only has comparable arrangements with Greece, France, and Sweden.
The current bilateral treaty between the two States addressing direct taxation is the Convention for the Avoidance of Double Taxation with Respect to Taxes on Income and on Capital, which was signed in London on 13 June 2013 and came into force in 2014, replacing the earlier Convention of 21 October 1975. Neither of these instruments is applicable to inheritance tax. Consequently, international double taxation is dealt with mainly by domestic mechanisms allowing for relief on taxes paid abroad.
In practice, even a technically valid civil-law plan may attract a substantially heavier tax burden where the asset ownership structure, the deceased’s tax residence, and the situs of the property are not properly aligned.
28 May 2026
By LEXUNION ESPAÑA, Barcelona (Spain)
