A New European Regulation Modifies the Inheritance Law Affecting Foreigners
Since 17 August 2015, the European Regulation (EU) No. 650/2012 has been in force — a key change that directly affects foreigners with property or residence in Spain, including those living in Mallorca, Ibiza, and the rest of the Balearic Islands.
In simple terms, this law determines which country’s inheritance law applies when a person dies owning assets in more than one European country.
This regulation has brought a major shift for European citizens residing in Spain: the law applicable to their inheritance is now that of their habitual residence, not automatically that of their nationality.
Who is affected?
This European regulation concerns all citizens who:
- Come from another EU country (except Denmark, Ireland, and the United Kingdom, where the regulation does not apply).
- Own property or other assets in Spain.
- Live, work, or spend their retirement in Mallorca or Ibiza.
If any of these apply to you, it’s essential to ask yourself:
- What happens to my estate in case of death?
- Which inheritance law will apply — that of my home country or Spain?
The key change: habitual residence determines the applicable law
Under Regulation (EU) 650/2012, inheritance is governed by the law of the country where the deceased had their habitual residence at the time of death.
Example:
If a British citizen lives permanently in Mallorca and passes away there, Spanish inheritance law — specifically Balearic regional law — applies, unless the deceased expressly chose otherwise in a valid will.
Previously, a British person’s estate would generally have been governed by UK law, regardless of residence, meaning their British will remained valid for assets abroad. Now, unless the will expressly states the intention to apply UK law, Spanish law will prevail.
How to ensure your inheritance follows your home country’s law
The safest and most practical way to regulate your estate is to make a will before a Notary in Spain.
In this will, you can explicitly choose the law of your nationality — for example, British, German, or French law — as the applicable law for your succession.
If no will is made, Spanish inheritance law automatically applies, which can lead to unwanted consequences.
What if my existing foreign will was made before this regulation?
A foreign will (for example, a British one) is not automatically invalid, but its effect in Spain may be limited.
Spanish inheritance law includes the concept of “legítima” — a forced heirship portion that reserves part of the estate for children or other legal heirs. This rule does not exist in many other European countries, and therefore, a foreign will leaving everything to one heir may not be fully enforceable in Spain.
To avoid legal complications or family disputes, it is advisable to review and adapt your will with a local lawyer and notary in Spain.
The European Certificate of Succession
The regulation also introduces a European Certificate of Succession, which simplifies cross-border inheritance cases within the EU.
This document officially identifies:
- The deceased person
- The heirs and their respective shares
- The assets located in different countries
The certificate facilitates the recognition of inheritance rights across EU states, avoiding the need for multiple national procedures.
Does the Inheritance and Donation Tax change under this regulation?
No. The Inheritance and Donation Tax remains governed by Spanish and regional tax law.
Heirs inheriting assets in Spain must still declare and pay the corresponding tax to the Spanish Tax Agency (Agencia Tributaria) or the Balearic regional authority, depending on the case.
For a full explanation, you can read our related guide:
👉 Inheritance and Donation Tax for Non-Residents
Why legal advice is essential
If you are a foreign resident in Mallorca or Ibiza, it is crucial to ensure your will complies with both European Regulation 650/2012 and Spanish inheritance law.
At Frau Legal, our international inheritance lawyers specialise in cross-border estates and wills for EU citizens living in Spain. We draft bilingual wills (English–Spanish), adapt existing foreign wills, and coordinate with notaries to ensure legal validity and peace of mind for you and your heirs.
📍 Contact our offices in Palma, Puerto Portals, Sóller, or Ibiza for a consultation:
fraulegal.com/contact
