Germany

Managing a Spanish Estate from Munich

Published April 2025 · 9 min read · By International Inheritance Spain

Munich is one of Germany's wealthiest cities, and a significant number of Bavarian families hold holiday property along the Spanish coast — particularly the Costa del Sol and the Balearic Islands. When a family member passes away, Munich-based heirs face a dual inheritance process: one in Germany under German law, one in Spain under Spanish law, and a double taxation treaty that must be carefully applied.

The Germany-Spain Double Taxation Treaty on Inheritances

Germany and Spain are among the very few countries that have concluded a bilateral inheritance and gift tax treaty (signed in 1966). This treaty prevents full double taxation but its application requires careful analysis:

• Immovable property (real estate) in Spain is taxable primarily in Spain
• German inheritance tax applies to the worldwide estate of a German-domiciled testator, but grants a credit for Spanish inheritance tax paid on Spanish assets
• The credit mechanism means you rarely pay full tax in both countries on the same asset, but the mechanics of the credit calculation can be complex
• German inheritance tax allowances are generous: €400,000 for spouses, €400,000 per child — but these only reduce the German tax, not the Spanish tax

We advise on both jurisdictions and coordinate with your German Steuerberater or Notar to ensure the treaty is applied correctly.

Which Law Governs the Spanish Estate?

Under EU Succession Regulation 650/2012, a German national habitually resident in Germany can choose German law to govern their entire estate, including Spanish assets. This choice must be made in a will (Testamentsverfügung). Without this choice, the law of habitual residence applies — German law for a Munich resident, but subject to renvoi and lex situs limitations for immovable property in Spain.

In practice, Spanish law always governs the Spanish real estate registration and tax process. A German will choosing German law helps ensure the succession is recognised in Germany, but the Spanish notarial process and Spanish inheritance tax must still be followed for Spanish assets.

The German Erbschein and Its Use in Spain

German heirs often have a German probate certificate (Erbschein) issued by the Nachlassgericht. This document can be used in Spain as evidence of heirship — but it must be apostilled under the Hague Convention and accompanied by a sworn Spanish translation (traducción jurada).

Alternatively, the European Certificate of Succession (established by EU Regulation 650/2012) can be obtained and used directly in Spain without apostille or translation — a significant practical advantage for German heirs.

Granting a Power of Attorney from Munich

Munich residents can grant a Spanish power of attorney in two ways:

• Before a German Notar in Munich — the document must be apostilled by the Bavarian state authority and accompanied by a sworn Spanish translation
• At the Spanish Consulate General in Munich — at Möhlstrasse 5, 81675 München — which can certify the signature directly on a Spanish-language document

We prepare the Spanish power of attorney text in advance and coordinate the signing process for you.

NIE Numbers for Munich Residents

Every heir must obtain a Spanish NIE (tax identification number) before the inheritance can proceed. Munich residents can apply through the Spanish Consulate in Munich or we can process this remotely. The NIE process typically takes two to four weeks.

Spanish Inheritance Tax for Bavarian Heirs

Spanish inheritance tax varies by region. The most common situation for Bavarian families is property on the Costa del Sol (Andalucía), where direct relatives pay minimal or zero inheritance tax after regional reductions. Property in Mallorca (Balearic Islands) also benefits from generous reductions.

The German-Spain treaty credit mechanism means Spanish inheritance tax paid reduces German inheritance tax. Combined with Germany's generous allowances, the effective combined tax burden for direct relatives is often very manageable.

Timeline for Munich-Managed Spanish Estate

• Week 1–2: Contact us, NIE applications, power of attorney signing
• Week 3–6: Registry searches, asset inventory, document gathering
• Month 2–4: Inheritance deed preparation, tax calculation
• Month 4–6: Tax filing, notarial signing, asset registration