Who can receive an inheritance in Spain?

When dealing with a death, a wide variety of situations arise regarding the distribution of assets. There is a common misconception that an inheritance can be left to anyone without restriction, but the legal reality in Spain is very different: not everyone is entitled to inherit, nor can assets be disposed of with absolute freedom.

Designation of Heirs: Does Absolute Freedom Exist?

When you decide to draft your will, it is essential that you are aware that you will not be able to dispose of your assets entirely as you wish. Current legislation establishes a strict regulation with specific percentages that will limit your decision when designating individuals, NGOs, or companies as heirs.

Who are the forced heirs?

The Spanish Civil Code establishes that two-thirds of the inheritance estate must be mandatorily reserved for the so-called forced heirs (or legitimarios), except in justified cases of disinheritance. The law establishes a strict order of priority for the lines of succession:

Children and descendants (parents or ascendants only inherit if there are no children).
Parents and ascendants (in the absence of descendants).
The surviving spouse (who is entitled to the widowed usufruct depending on the case).

⚠️ Clarifying Note: Siblings, nephews/nieces, other relatives up to the fourth degree, and the State are not forced heirs. They are “statutory” heirs who only inherit in an intestate succession (without a will) if the previous groups do not exist. With a will, you can exclude them completely if you wish.

The Three-Thirds Rule

To understand how an inheritance is distributed in the common Spanish territory, the estate is conceptually divided into three equal parts:

The forced share: It is the third that must mandatorily be distributed equally among all forced heirs (for example, among all children).
The improvement share (tercio de mejora): This third must also be allocated to forced heirs (children and descendants), but the testator can choose how to distribute it. It can be divided equally, benefit a single child, or be assigned in whichever percentages are preferred.
The free disposal third: It is the only part of the inheritance that the testator can assign 100% freely to whomever they wish, whether a natural person (relative or a third party) or an institution/company.

For example, if a widowed woman has two children and an estate valued at 300,000 euros, when she dies, the distribution would be as follows:

The forced share. 100,000 euros would be divided between the two, receiving 50,000 euros each, obligatorily.
The improvement share (tercio de mejora). The mother can give €50,000 to each, the full €100,000 to just one to benefit them, or as she prefers and indicates in her will.
The free disposal third. The 100,000 can be divided between the two children, given to only one, or benefit any other person or institution (such as an NGO, for example).

Regional Particularities in Spanish Inheritances

Although the Civil Code rule is the general standard, the succession landscape in Spain changes completely depending on the region where the deceased resided. There are two key factors that determine the outcome of an inheritance: the regional civil distribution laws (derechos forales) and the tax pressure (the Inheritance Tax).

Civil Factor

Several Autonomous Communities have their own regional civil laws that modify the thirds of the inheritance:

Aragon. The collective statutory share is 50% of the estate, and the testator can distribute it freely or give it to a single child, allowing the legal exclusion of the rest.
Catalonia. The global statutory share for children is considerably reduced to just 25% of the inheritance value.
Galicia. Just like in Catalonia, the children’s statutory share is 25%. Furthermore, in this region, the surviving spouse is granted a very broad lifelong usufruct right (which can reach the entirety or a large part of the inheritance if concurring with children).
Balearic Islands. The percentage varies according to the number of statutory heirs; it is generally one-third, but rises to 50% if there are four or more forced heirs.
Navarra and the Basque Country. These two cases are the most complex, as they have the most flexible systems. In Navarre, there is almost absolute freedom to testate (the statutory share is purely formal or symbolic), while in the Basque Country, children can be “set aside” (excluded) from the inheritance with total freedom in favor of just one. Furthermore, distinctions are made regarding types of assets and specific zones within the region.

If the deceased had a residence in any of these Autonomous Communities, the will must be drafted according to the regulations applicable to them.

Tax Factor

Although two communities share the same civil code for distributing assets, what an heir pays to the Tax Agency varies drastically, marking the difference between being able to enjoy the assets or being forced to renounce the inheritance:

Regions with “zero tax” or extreme relief: Communities such as the Valencian Community, Madrid, Andalusia, Murcia, Balearic Islands, Canary Islands, or Cantabria apply tax allowances of between 99% and 100% for direct relatives (children, parents, and spouses). In practice, the immediate family pays next to no taxes. Furthermore, regions like Madrid or the Valencian Community already extend tax reductions to collateral relatives (siblings, aunts/uncles, and nephews/nieces).
Regions with a high tax burden: In Communities like Asturias or Catalonia, tax brackets are stricter, or reductions are lower, which can mean that beneficiaries have to pay very high sums to take possession of their assets. This, in some cases, can force them to reject the inheritance.

Who cannot be an heir?

The law provides for certain absolute or relative limitations and prohibitions. Under no circumstances can the following receive an inheritance:

The stillborn fetuses (those that are not born fulfilling the legal conditions of legal personality).
The associations or corporations that are not permitted or are illegal under the law.

For reasons of transparency and to prevent coercion at the time of drafting the last will and testament, the law restricts inheriting significant amounts to:

The notary who authorizes the will, as well as their direct relatives.
The witnesses who participate in an open will.

If it is a matter of legacies of a strictly residual or very small value, the law may make exceptions in these last two cases.

Conclusion

Planning an inheritance in Spain requires a thorough understanding of both the Civil Code and regional civil rights to prevent the will from being contested in the future. Securing the free disposal third or protecting the rights of your forced heirs is much simpler with the backing of experts.

Do you need to plan your inheritance or manage a succession in Spain?

The civil and tax legislation can be complex, especially if you have assets in different Autonomous Communities or if you reside abroad. A poorly drafted will can lead to family disputes or an exorbitant tax burden for your loved ones.

At FIRMALEX, we are expert lawyers in Succession Law and Tax Planning. We handle the entire process to ensure that your wishes are fulfilled with maximum legal certainty and the lowest possible tax cost.

Further information

This article is part of our service Inheritance in Spain. Visit this section where you will find all the useful information on this topic, including a complete guide on Inheritance in Spain with a non-resident, expat or foreigner.

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