Protecting Your Legacy Across UK and Spain
Spanish wills for UK-domiciled individuals are rarely straightforward, especially where trusts are involved. If you own a home on the Costa del Sol, keep investments in Spain, or spend large parts of the year there, you are working across two very different legal and tax systems. Getting your planning wrong can mean higher tax, delays for your family, or gifts that do not work as you expected.
In this article, we look at how Spanish succession rules sit alongside UK domicile and trust planning. We also explain how careful drafting of a Spanish will can respect your UK wishes, reduce the risk of conflict, and help your family deal with both sides of the Channel with less stress.
Many people think a single English will automatically covers everything everywhere. Others assume Spanish law will always force a strict split between children and spouse, even if you have chosen different terms. The truth is more nuanced, especially now that the EU Succession Regulation and post-Brexit practice are part of the picture. As an Anglo-Spanish set of lawyers and barristers, we at Del Canto Chambers work daily at the point where these two systems meet.
How Spanish Law Treats UK-Domiciled Estates
Under UK law, domicile is about where your permanent home is in a long-term sense. You can be UK-domiciled even if you spend long periods abroad. Spain looks at different ideas, such as tax residence and habitual residence, which are more about where you actually live and spend your time.
These distinctions matter because they affect:
- Which law governs your succession
- Which country can tax your estate
- How Spanish and UK authorities view the same assets and trusts
Spain generally applies its own succession rules to assets located in Spain, especially real estate. That can still be true where the deceased is clearly UK-domiciled. Spanish law also has strong rules on forced heirship, where certain family members, often children, are entitled to reserved shares of the estate.
It becomes even more intricate when you add the regional civil laws of areas such as:
- Catalonia
- The Balearic Islands
- The Basque Country
- Galicia
These regions may have their own spin on forced heirship, marital rights, and succession options, which can change how your Spanish assets pass.
The EU Succession Regulation, often called Brussels IV, has a key role. Even after Brexit, Spain still applies it. A person who owns Spanish assets can usually choose in their will that the law of their nationality, for example English law, governs their succession. If you are a British national with Spanish property, a carefully drafted Spanish will can state that English law applies. This can give you more freedom than the default Spanish rules, provided the choice is clear and correctly structured.
Aligning UK Trusts with Spanish Wills and Tax
Trusts are common in UK planning, but Spain does not have a native trust concept in its civil law. Spanish authorities tend to look through the trust to see who really enjoys or controls the asset.
Common UK structures include:
- Life interest trusts, where one person has income for life
- Discretionary trusts, where trustees decide who benefits and when
- Will trusts, which only come into effect on death
Under Spanish civil and tax law, these can be treated very differently from how they are viewed in the UK. For example, the trustee might be treated as owner, or the beneficiaries might be taxed when they receive benefits, even if, from a UK view, no transfer has occurred.
This can lead to Spanish:
- Inheritance tax, on transfers into or out of the trust
- Wealth tax, on Spanish property or investments held long-term
- Capital gains tax, when Spanish assets are sold by the trustees
If a UK trust holds a Spanish villa, investment portfolio, or shares in a Spanish company, the Spanish tax and succession angle must be assessed. Double taxation or surprise liabilities can appear if the planning only considers UK rules.
Lawyers and barristers used to cross-border work often focus on:
- Clarifying the governing law choices in the Spanish will
- Reviewing how Spanish assets are held, for example personal name, company, or within a trust structure
- Mapping out when Spanish tax charges may arise and how to time events
- Reducing the chances of the same value being taxed twice, once in the UK and once in Spain
The goal is to have the UK trust and the Spanish will pulling in the same direction, rather than fighting each other.
Drafting a Spanish Will That Respects UK Intentions
For many UK-domiciled individuals, a separate Spanish will is advisable if they have:
- Spanish real estate
- Bank accounts or investment portfolios in Spain
- Long-term personal or business links with Spain
A Spanish will limited to assets located in Spain can speed up the process for those assets and avoid delays in dealing with Spanish notaries and registries. It can also sit alongside your English will, as long as both are consistent and clearly drafted.
Key drafting points usually include:
- Making an express choice of law, for example choosing English law if that is suitable
- Confirming that the Spanish will only cover Spanish assets, so it does not accidentally revoke your English will
- Checking the trust provisions in the English will, so beneficiary labels and gift terms match across both documents
It is also important to consider:
- How joint ownership of Spanish property is structured
- What happens if one joint owner becomes Spanish tax resident
- Whether any forced heirship claims might arise despite a choice of law, especially where family members challenge the arrangements
Where there are vulnerable beneficiaries, second families, or children from different relationships, bespoke drafting can be used to support them while trying to respect both systems. For example, the Spanish will might direct certain assets in a way that aligns with the UK trust, while still keeping an eye on possible forced heirship arguments.
Seasonal Triggers and Reviewing Your Planning
Many cross-border issues come to light around summer. People spend longer in Spain, buy holiday homes after viewing properties in the sun, or decide to retire and extend their stays. Time spent in Spain may build up to tax residence or habitual residence, which can affect both tax and succession.
Late summer can be a sensible review point to check that:
- Your Spanish will still reflects your current wishes
- Any new or updated UK trusts are properly taken into account
- Changes such as marriage, separation, births, or business sales are covered
A simple review checklist might include:
- Confirming where each key asset is located and how it is owned
- Cross-checking English and Spanish wills so they fit together
- Reviewing lasting powers of attorney or Spanish equivalents, so someone you trust can handle affairs if needed
- Looking at recent patterns of residence to see if a new or revised choice of law in the Spanish will is appropriate
This does not mean making constant changes, but it does mean not leaving documents untouched for long periods while your life and tax footprint in Spain slowly shift.
Taking Confident Next Steps with Cross-Border Advice
Standard UK will templates and generic Spanish forms rarely cope well with trusts, mixed families and cross-border assets. They might look simple, but small wording issues can have large effects once Spanish notaries, tax offices, and registries become involved alongside UK institutions.
A more structured approach usually works best. That often starts with gathering:
- Your current UK will and any trust deeds
- Spanish property deeds and bank or investment information
- Recent tax records from both countries, where relevant
With those in hand, an integrated review by an Anglo-Spanish team can help line everything up. At Del Canto Chambers, our lawyers and barristers work across both systems so that Spanish wills for UK-domiciled individuals with trusts are clearer, closer to your intentions, and easier for your family to administer when the time comes.
Secure Your Cross-Border Estate Planning With Confidence
If you have assets in Spain and intend to remain UK-domiciled, we can help you put robust arrangements in place that respect both jurisdictions. Our specialist team will guide you through Spanish wills for UK-domiciled individuals, ensuring your wishes are clearly set out and tax exposure is carefully managed. To discuss your situation in detail and receive tailored advice from Del Canto Chambers, please contact us today.
