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Chicago Residents and Spanish Inheritances: Your Questions Answered

Published April 2025 · 8 min read · By International Inheritance Spain

Chicago is one of America's most international cities, with large communities from across Europe including Spain. Chicago-based families dealing with a Spanish inheritance need to navigate both the Spanish legal process and their US tax obligations — all within a strict time limit.

The most common questions we receive from Chicago clients, answered here.

Q: Do I have to travel to Spain to handle the inheritance?

No. The entire Spanish inheritance process can be managed from Chicago. You grant us a power of attorney — either signed at the Spanish Consulate in Chicago (located at 180 N. Michigan Avenue, Suite 1500, Chicago, IL 60601) or before an Illinois notary (apostilled by the Illinois Secretary of State) — and we act on your behalf throughout.

Q: How long do I have to deal with it?

Six months from the date of death. This is Spain's deadline for filing the inheritance tax return. Missing it triggers surcharges of 5% to 20% on the tax owed. A six-month extension can be applied for within the first five months. Contact us immediately when someone dies — every week matters.

Q: How much Spanish inheritance tax will I pay?

It depends heavily on two factors: (1) the region where the Spanish property is located, and (2) your relationship to the deceased. Close relatives inheriting in Andalucía (Costa del Sol) typically pay minimal or no Spanish inheritance tax. The same property in Cataluña (Barcelona) could attract a tax bill of 10–20% of the estate value.

We calculate your Spanish inheritance tax liability for free before you instruct us.

Q: Will I have to pay US estate tax as well?

US federal estate tax applies only if the deceased was a US person (citizen or domiciliary) with a worldwide estate above the federal exemption ($13.61 million per individual in 2024). If you are the heir, not the deceased, you do not pay estate tax as an heir — the estate pays it. However, you may have IRS reporting obligations (Form 3520, FBAR) depending on the value and nature of what you inherit.

Q: The deceased had a Spanish will. Is it valid in the US?

A Spanish will governs Spanish assets. For US assets, US probate applies (depending on what US assets exist). The two processes run in parallel. We manage the Spanish side and can coordinate with your Chicago probate attorney on the US side.

Q: What if there are multiple heirs, some in Chicago, some in Spain, some elsewhere?

Very common. We coordinate between all heirs across all countries. Each heir grants us a power of attorney independently. We manage the process as a single coordinated project and keep everyone informed in English throughout.

Q: What if the deceased had debts in Spain?

Spanish inheritance law allows heirs to renounce the inheritance to avoid taking on debts. You can also accept a beneficio de inventario (benefit of inventory) — meaning you accept only to the extent that assets exceed debts. We analyse the net position and advise you on the best course of action.