Your Life Moved to Spain. Has Your Estate Plan Moved With You?
- Business Expats
- 1 day ago
- 14 min read
Why expats, new Spanish tax residents and internationally mobile families should review their succession planning before it becomes urgent
Spain has become one of the most attractive destinations for internationally mobile individuals, entrepreneurs, retirees and families looking for lifestyle, stability and long-term opportunities.
Some arrive under a non-lucrative visa. Others relocate as executives, founders, investors or remote workers. Some benefit from the special inbound expatriate regime, commonly known as the Beckham regime. Others simply move to Spain for family, retirement or quality of life reasons and, over time, become Spanish tax residents.
At the beginning, estate planning may not seem like an immediate priority.
Many expats already have a will in their home country. Some have family trusts, holding companies, real estate structures, investment accounts or succession arrangements prepared before moving to Spain. Others assume that their home country rules will continue to apply in the same way, even after Spain becomes their tax residence, their family home or the jurisdiction where part of their wealth is located.
That assumption deserves a closer look.
A recent judgment of the Spanish Supreme Court, STS 849/2026 of 3 June 2026, is a useful reminder that succession planning in Spain is not only about having a will. It is also about understanding how Spanish civil law, forced heirship rules, surviving spouse rights, pending inheritances and tax residence may interact with an international estate plan.
This does not mean that every expat has a problem. It means that every expat should have clarity.
Estate planning should evolve when residence evolves
When a person moves to Spain, the first legal and tax conversations usually focus on immigration status, income tax, real estate, wealth tax, social security, corporate structures or the Beckham regime.
Succession planning often comes later. However, life in Spain can evolve quickly.
A temporary relocation becomes a long-term stay. A rented apartment becomes a purchased home. A non-lucrative visa leads to tax residence. A Beckham regime period ends. A family starts spending most of the year in Spain. A spouse, partner or children become closely connected to the country. Assets remain abroad, but the person’s centre of life is now in Spain.
At that point, the question is no longer only:
“Do I have a will?”
The better question is:
“Does my estate plan still work now that Spain is part of my legal and tax life?”
For international families, this distinction is essential.
A foreign will may still be valid. A trust may still exist. A company may still hold assets. A family agreement may still reflect the person’s wishes. But the way those instruments interact with Spanish succession and tax rules may be very different from what the family expects.
What the Spanish Supreme Court has clarified
The Spanish Supreme Court judgment STS 849/2026 deals with a specific but very relevant succession issue: what happens when an heir dies without having accepted or rejected a previous inheritance?
In Spanish law, this situation is governed by Article 1006 of the Civil Code. The article provides that, when an heir dies without accepting or rejecting an inheritance, the same right that he or she had passes to his or her own heirs.
This is known as the right of transmission, or ius transmissionis.
The technical question is how that transmission should be understood.
For years, Spanish doctrine distinguished between two main approaches.
The first was the so-called modern theory, according to which the final heirs may be seen as succeeding directly to the first deceased person.
The second was the classical theory, also known as the double transmission theory, according to which the inheritance first passes through the estate of the intermediate deceased heir and only then reaches his or her own heirs.
This may sound highly technical, but the practical consequences can be significant.
The approach taken may affect:
who must participate in the partition of the estate;
whether the surviving spouse of the intermediate heir has rights to be considered;
how forced heirship rights are calculated;
whether assets from a previous inheritance are included in the intermediate heir’s estate;
how notaries and registries process the inheritance;
and whether the tax analysis may need to consider one or more taxable transfers.
In STS 849/2026, the Supreme Court, sitting in plenary session, returned to the classical theory of double transmission.
The Court considered that this interpretation is more coherent with Article 1006 of the Civil Code and with the principles of Spanish succession law. It also emphasised that the previous approach had generated uncertainty in notarial and registry practice.
The practical result in the case was that, for the purpose of calculating the surviving widow’s forced heirship rights in her deceased husband’s estate, the assets that would have corresponded to him in his mother’s inheritance had to be taken into account. Therefore, the widow’s intervention was required in the partition of the first inheritance.
In simple terms: an inheritance that had not yet been formally accepted could still matter when determining the rights of the deceased heir’s own successors.
Why this matters for expats in Spain
For many Spanish families, this judgment is already important.
For international families, it can be even more relevant.
Expats often have estate plans designed under legal systems that do not operate like Spanish succession law. Some come from common law jurisdictions where testamentary freedom is broader. Others come from Latin American or European systems with different forced heirship rules. Some have trusts, foundations, LLCs, holding companies, insurance wrappers, investment portfolios or real estate in multiple jurisdictions.
The issue is not that these structures are automatically wrong.
The issue is that Spain may not interpret their succession effects in the same way as the country where they were created.
For example, an expat living in Spain may have:
a will drafted in the United States, the United Kingdom, Switzerland, Portugal or Latin America;
children living in another country;
a spouse of a different nationality;
children from a previous relationship;
real estate in Spain and financial assets abroad;
a family trust created before moving to Spain;
shares in a foreign company;
cryptoassets held through exchanges or wallets;
or a pending inheritance from a parent or relative abroad.
If that person becomes Spanish tax resident, buys property in Spain or builds long-term family connections here, Spanish succession and tax rules may become part of the analysis.
That is why the Supreme Court’s judgment is not only relevant for lawyers and notaries. It is relevant for internationally mobile families who want their estate planning to remain aligned with their real life.
Practical example
A US citizen who moved to Valencia under a non-lucrative visa
Imagine a US citizen from California who moved to Spain under a non-lucrative visa.
At first, Spain was meant to be a lifestyle decision: Mediterranean living, sunshine, proximity to Europe and a slower pace of life. He had a US will, investment accounts in the United States and a family succession plan prepared before moving.
After several years, Valencia becomes home.
He becomes Spanish tax resident, buys an apartment in Valencia and keeps a summer house in Santa Barbara, California, in his own name.
He has two children: one lives in the United States and the other has moved to Spain.
From a Spanish perspective, the first obvious point is the Valencia apartment. It is a Spanish asset. If it is inherited, it will need to be considered for Spanish inheritance tax purposes.
But the analysis does not necessarily stop there.
If one of the heirs is Spanish tax resident at the time of inheritance, Spain may tax that heir on the worldwide assets received, not only on the Spanish property. This means that the Spanish resident heir may need to consider, in Spain, both the Valencia apartment and the share inherited in the Santa Barbara summer house, even though that property is located in the United States.
By contrast, if the other child remains US tax resident and is not tax resident in Spain, Spain would generally focus on the Spanish-situs assets inherited by that heir, especially the Valencia apartment or any rights located, exercisable or to be fulfilled in Spain.
This is where many expats get surprised.
They assume that a US property is only a US matter. That may be true for some heirs, but not necessarily for a Spanish tax resident heir.
There may also be US estate tax, local probate rules, state-level implications, foreign tax credits or double taxation relief issues to review. The objective is not to duplicate tax unnecessarily, but to coordinate the estate process correctly.
The planning point is not that the US estate plan is wrong. The planning point is that, once Spain becomes home, the estate plan should be reviewed through a Spanish tax and succession lens.
Practical example
A UK citizen who has lived in Spain for 10 years
Now imagine a UK citizen who moved to Spain after Brexit and has lived in Spain for 10 years.
He first came for lifestyle reasons. Over time, Spain became his permanent base. He is now Spanish tax resident, owns a house in Málaga and still keeps a flat in Manchester in his personal name.
He has adult children in the UK and a long-term partner in Spain. His UK will was drafted before he became a long-term Spanish resident.
Again, the questions are practical.
The Málaga house is a Spanish asset and should be considered for Spanish inheritance tax purposes.
The Manchester flat may also become relevant in Spain if the person inheriting it is Spanish tax resident. A Spanish resident heir may be taxed in Spain on worldwide assets received by inheritance, including a property located in the UK.
If the children are UK resident and not Spanish tax resident, Spain would generally look at the Spanish assets they inherit, such as the Málaga property. The Manchester flat would primarily require UK analysis, although coordination may still be needed.
The UK will should also be reviewed. It may not automatically answer all Spanish succession questions, especially if there is Spanish real estate, a surviving partner, children from a previous relationship or a mismatch between the UK will and the person’s Spanish life.
For example, if the UK citizen had a pending right to inherit from a parent in the UK but died before accepting or rejecting that inheritance, Spanish law may need to consider whether that pending inheritance right forms part of his own estate.
This is where the Supreme Court’s recent approach becomes relevant.
Under the return to the classical double transmission theory, that pending inheritance right may pass through the estate of the intermediate deceased heir. This can affect who needs to be considered, how surviving spouse or forced heirship rights are calculated, and how the inheritance is partitioned.
For an expat with assets in Spain and abroad, that can turn a family succession into a cross-border coordination exercise.
What can also happen:
foreign assets may enter the Spanish inheritance tax analysis
This is the point that should be clearly understood, without unnecessary alarm.
Spanish inheritance tax is generally paid by the person receiving the inheritance, legacy or life insurance proceeds. In other words, the focus is not only on where the deceased person lived, but also on who receives the assets and where that heir is tax resident.
If the heir or beneficiary is Spanish tax resident, Spain may tax that person on the worldwide assets received by inheritance.
This means that foreign assets can become part of the Spanish inheritance tax calculation.
For example:
a Spanish tax resident child inheriting a summer house in California;
a Spanish tax resident spouse inheriting a flat in Manchester;
a Spanish tax resident heir receiving foreign investment accounts;
a Spanish tax resident beneficiary receiving life insurance proceeds;
or a Spanish tax resident heir receiving shares in a foreign company.
If the heir is not Spanish tax resident, Spain generally taxes the acquisition of Spanish-located assets or rights that can be exercised or fulfilled in Spain.
This is why two heirs in the same family may have different Spanish tax outcomes.
One child may live in Spain and be taxed in Spain on worldwide inherited assets.
Another child may live abroad and be taxed in Spain only on Spanish assets received.
A spouse may be resident in Spain.
A beneficiary may be resident in the United States or the United Kingdom.
The same estate can therefore produce different reporting obligations and tax consequences for different heirs.
Why the six-month deadline matters
Spanish inheritance tax is not only a planning issue. It is also a timing issue.
As a general rule, the tax is triggered on the date of death and the filing deadline is six months from that date.
A six-month extension may be requested, but it must generally be requested within the first five months following the death.
This matters for expats because cross-border estates usually take time.
Documents may need to be collected in several countries. Foreign wills may need to be reviewed. Probate or equivalent procedures may need to be started abroad. Foreign death certificates, wills, powers of attorney or court documents may need apostille and sworn translation. Spanish assets may require notarial or registry steps. Foreign heirs may need a Spanish NIF or NIE to deal with the tax filing.
If this is not anticipated, the family may face pressure at the worst possible moment.
Good planning reduces that pressure.
What about the Beckham regime?
Many inbound professionals and entrepreneurs moving to Spain focus heavily on the Beckham regime. That makes sense.
The regime can be highly relevant for income tax purposes during the years in which it applies. However, it should not be confused with a complete estate planning solution.
A person benefiting from the Beckham regime may still need to review:
what happens when the regime ends;
whether they will become fully taxed under the general Spanish tax system;
whether they own or acquire Spanish real estate;
whether their spouse, children or heirs live in Spain;
whether their foreign will coordinates with Spanish assets;
and whether their long-term residence creates succession and inheritance tax implications.
The Beckham regime may be part of the broader relocation strategy, but it should not be the only planning layer.
For expats who initially move to Spain under a favourable tax regime and later become ordinary Spanish tax residents, estate planning should be revisited before the transition happens.
What about non-lucrative visa holders?
Non-lucrative visa holders are another important group.
Many individuals arrive in Spain with a lifestyle or retirement plan. They may not be working in Spain, but they may have pensions, investment income, real estate abroad, family wealth or inheritance expectations in another country.
Over time, they may become Spanish tax residents and develop stronger personal and asset connections with Spain.
For this profile, the key estate planning questions often include:
whether the foreign will is sufficient;
whether a Spanish will should be prepared for Spanish assets;
how Spanish inheritance tax may apply;
how regional tax rules may affect heirs;
how to coordinate heirs living in different countries;
whether forced heirship rules may affect the intended distribution;
and how to avoid delays or inconsistencies between jurisdictions.
Again, the objective is not to create concern. The objective is to create certainty.
The tax angle:
why civil law matters
The Supreme Court judgment is a civil law decision. It addresses how succession rights are transmitted under Article 1006 of the Civil Code. However, civil law classifications often have tax consequences.
If an inheritance is treated as passing through the estate of an intermediate heir, the tax analysis may differ from a scenario in which the final heirs are treated as inheriting directly from the first deceased person.
This can become especially relevant when the deceased, the heirs or the assets are connected to more than one country.
In Spain, inheritance tax exposure may depend on several factors, including:
the tax residence of the deceased;
the tax residence of the heirs;
the location of the assets;
the autonomous community rules that may apply;
the relationship between the deceased and the heir;
existing double taxation issues;
and the legal classification of the succession event.
For expats, this is why succession planning should not be reviewed only from a civil law perspective or only from a tax perspective. Both layers need to be coordinated.
The role of forced heirship and the surviving spouse
One of the most important lessons from STS 849/2026 is the importance of protecting the rights of forced heirs and the surviving spouse.
In the case analysed by the Supreme Court, the debate was not merely academic. The key practical question was whether the widow of the intermediate heir had to be considered when calculating her legal usufruct rights.
The Court concluded that the assets corresponding to her deceased husband in the first inheritance had to be computed for that purpose.
For expats, this point is essential.
Many international families assume that the will alone determines everything. In Spain, that may not always be the case.
Depending on the applicable succession law, Spanish forced heirship rules or equivalent protective mechanisms may affect how assets are distributed. Surviving spouses, children and other family members may have rights that need to be considered, even if the estate plan was drafted abroad.
This is especially relevant in situations involving second marriages, unmarried partners, blended families, children from prior relationships or family members living in different countries.
What expats should review
An expat living in Spain, planning to move to Spain or transitioning into ordinary Spanish tax residence should consider reviewing at least the following:
First, whether there is a will and where it was drafted.
Second, whether the will includes Spanish assets or whether a separate Spanish will would be advisable.
Third, whether the estate plan clearly coordinates assets located in different jurisdictions.
Fourth, whether the person has made a valid choice of applicable succession law where available.
Fifth, whether the spouse, children or other heirs are protected in the intended way.
Sixth, whether there are pending inheritances that have not yet been accepted or rejected.
Seventh, whether trusts, companies, foundations, holding structures or nominee arrangements are part of the family wealth.
Eighth, whether Spanish inheritance tax could apply to heirs or assets.
Ninth, whether the estate plan still makes sense after becoming Spanish tax resident.
Tenth, whether the plan should be updated before the Beckham regime ends, before buying Spanish real estate or before consolidating long-term residence in Spain.
Planning is not about fear. It is about alignment.
The key message is simple. Moving to Spain does not mean that every estate plan must be replaced. But it does mean that the estate plan should be reviewed.
For international families, good estate planning is about alignment. The legal documents, tax residence, asset location, family circumstances and long-term intentions should all work together.
A will drafted years ago in another country may still be useful. But it should be tested against the current reality: Spanish residence, Spanish assets, family connections, tax exposure and the possible application of Spanish succession principles.
The Supreme Court’s recent judgment is a timely reminder that Spanish inheritance rules have their own logic. That logic can affect very practical questions: who participates in the estate, how rights are calculated and how assets move from one generation to the next.
For expats, the opportunity is clear. Review the plan before there is a problem.
Our view
At Business Expats, we believe that estate planning for expats in Spain should be practical, cross-border and tax-aware. It should not be limited to drafting documents.
It should answer real-life questions:
Will my family know what to do?
Will my foreign will work in Spain?
Are my spouse and children protected as intended?
Will my heirs face unnecessary tax uncertainty?
Do my structures still make sense now that Spain is part of my life?
What should be updated before I become a long-term Spanish tax resident?
For expats, succession planning is not about changing everything. It is about confirming that everything still works. If your life has moved to Spain, your estate plan should move with it.
If Your Life Has Moved to Spain, Your Estate Plan Should Move With It
A will drafted years ago may still be valid. The real question is whether it still works within your current international reality.
At Business Expats, we help internationally mobile families, entrepreneurs, investors and retirees coordinate succession planning, international taxation and cross-border wealth protection.
Contact our experts for a confidential Cross-Border Estate & Tax Review.
Business Expats
Madrid
+34 692 26 6502
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Frequently Asked Questions About Estate Planning for Expats in Spain
Does moving to Spain automatically invalidate my foreign will?
Not necessarily. Many foreign wills remain valid, but they should be reviewed to ensure they coordinate correctly with Spanish succession law, Spanish assets and your current family circumstances.
Should expats living in Spain have a Spanish will?
In many cases, a Spanish will can simplify the administration of Spanish assets and improve coordination with existing estate planning documents.
Can Spanish inheritance tax apply to foreign assets?
Potentially yes. If an heir is Spanish tax resident, Spain may tax worldwide assets received through inheritance, depending on the circumstances.
What happens if I become incapacitated while living in Spain?
Without proper planning, family members may encounter difficulties accessing bank accounts, making healthcare decisions, managing investments or operating businesses on your behalf.
Does the Beckham regime solve estate planning issues?
No. The Beckham regime primarily affects income tax. Estate planning, succession law and inheritance tax require separate analysis.
Why is cross-border succession more complex?
Because multiple legal systems, tax rules, heirs, assets and jurisdictions may interact simultaneously, creating risks that rarely exist in purely domestic estates.
When should estate planning be reviewed?
Ideally when relocating to Spain, becoming Spanish tax resident, acquiring Spanish property, entering or leaving the Beckham regime, or experiencing significant family or wealth changes.
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