Key Takeaways
- US citizens in Spain need a Spanish will for Spanish assets. US wills are not automatically recognised — enforcing one in Spain requires expensive apostille and court proceedings.
- EU Regulation 650/2012 applies to US citizens resident in Spain. You can elect US law (your state’s law) via a professio juris clause to avoid Spanish forced heirship.
- State-level variation matters. US inheritance law varies by state — community property states (California, Texas) work differently from common law states. Your lawyer needs to understand both systems.
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Key Takeaways
- The US-Spain tax treaty covers income tax only — it does NOT cover inheritance or estate tax, meaning US nationals face potential double exposure in both jurisdictions
- Unlike UK nationals who elect ‘English and Welsh law,’ US nationals must specify which state’s law (e.g., ‘the law of California’) since succession rules vary by state
- US federal estate tax is generally not triggered below approximately USD 13.61 million (2024 figure, subject to legislative change); state-level estate taxes can be triggered much lower
- US revocable living trusts — common in American estate planning — interact with Spanish succession law in ways that require specialist analysis
- IRS worldwide taxation continues regardless of Spanish residence, adding a compliance layer that UK nationals don’t face
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US-Spain Tax Treaty: What It Does Not Cover
Spain and the United States have a tax treaty (Convenio entre el Reino de España y los Estados Unidos de América para evitar la doble imposición). However:
This treaty covers income tax and capital gains. It does not cover inheritance tax or estate tax.
This means there is no treaty protection against double taxation on inheritance. If your estate is subject to both:
- Spanish succession tax (on Spanish-situated assets passing to your heirs), AND
- US federal or state estate tax (on your worldwide assets)
…there is no automatic credit or offset mechanism between the two countries. You and your heirs may owe both.
For most Costa del Sol estates owned by US nationals with direct heirs:
- Andalusian succession tax is typically zero due to the EUR 1,000,000 per-beneficiary allowance and 99% reduction (see Inheritance Tax in Spain: What Your Heirs Need to Know)
- US federal estate tax is typically not a concern below USD 13.61 million
- US state estate tax depends on domicile state
The practical risk area is the combination of a lower-threshold state estate tax (Massachusetts, Oregon) and a significant estate. Cross-border planning that considers both jurisdictions simultaneously is required.
What a Specialist Needs to Know
A cross-border US-Spain succession specialist requires the following to advise you:
US side:
- Your US domicile state
- Whether you have a current US will and what it says
- The approximate value and location of your US assets
- Your US estate tax exposure at both federal and state levels
- Whether any existing trusts (revocable living trust, irrevocable trust) affect the succession planning
Spanish side:
- The approximate value of your Spanish assets
- Whether you are fiscally resident in Spain (you almost certainly are if you live here full time)
- Your family structure (spouse, children, other beneficiaries, blended family considerations)
- Whether you want to elect your state’s law or are willing to use Spanish succession law
Without both sides of this picture, any advice will be incomplete.
What the Spanish Will Should Contain for US Nationals
A Spanish will for a US national should include:
The choice-of-law election with state specified:
“In accordance with Article 22 of Regulation (EU) No. 650/2012, I declare that I choose the law of [California / New York / other state] to govern the succession of my entire estate.”
Standard distribution language appropriate for your family structure and consistent with your US succession planning.
Jurisdiction-limited revocation clause:
“This will revokes any will I have previously made in Spain only. It does not revoke any will made in another jurisdiction.”
General asset coverage:
“This will covers all assets situated in Spain at the time of my death.”
The Spanish will does not need to reference your US will or US assets. It covers Spain only.
The Difference From the UK Situation
British expats in Spain benefit from a relatively straightforward planning framework: elect English and Welsh law, coordinate with the UK will, done. The US situation is more complex because:
- State law variation means the choice-of-law election requires more analysis
- IRS worldwide taxation continues regardless of Spanish residence
- No US-Spain estate tax treaty means potential double taxation exposure
- FATCA creates ongoing compliance obligations
- US trusts (particularly revocable living trusts commonly used in US estate planning) interact with Spanish succession in ways that require specialist analysis
None of this means succession planning for US nationals in Spain is impossible. It means it requires more specialist involvement and more coordination between your US and Spanish advisors.
The Spanish will is still essential — the consequences of dying in Spain without one (heirs relying on a US will in a country that doesn’t recognize the probate system used to prove it) are even more severe than for British expats. See What Happens If You Die in Spain Without a Will for the full picture.
EU Regulation 650/2012 confirmed February 2026. US federal estate tax exemption figure is for 2024; the 2025-2026 exemption is subject to legislative change. US state estate tax thresholds as of February 2026; verify current figures with a US-qualified advisor. IRS FATCA requirements confirmed February 2026. Legal and tax advice for US nationals in Spain should be obtained from a qualified professional with both US and Spanish competency.
Related Guides
Frequently Asked Questions
Where can I find more guides on this topic?
See our Complete Spanish Wills Guide for the full picture, or browse all guides at guides.waypointsur.com.
