United States

How New York Families Handle a Spanish Inheritance

Published April 2025 · 10 min read · By International Inheritance Spain

New York is home to one of the largest Spanish-speaking communities in the United States, and many New York families have property or financial ties to Spain. Managing a Spanish estate from New York requires navigating two completely different legal systems — without the benefit of a bilateral inheritance tax treaty between the US and Spain.

The US-Spain Legal Framework: No Treaty, No Regulation

Unlike Germany, the United States has no bilateral inheritance or gift tax treaty with Spain. And unlike EU countries, the US does not participate in EU Succession Regulation 650/2012. This means:

• Spanish law governs Spanish-located assets — period
• US federal estate tax may also apply if the deceased was a US person (citizen or domiciliary) with worldwide assets above the federal exemption ($13.61 million in 2024)
• New York State estate tax may apply separately (New York exemption is approximately $6.94 million in 2024)
• Spanish inheritance tax paid can be claimed as a foreign tax credit against US estate tax — but the mechanics require careful analysis

Signing a Power of Attorney in New York

New York heirs can grant a Spanish power of attorney in two ways:

• Before a New York notary public — the document must then be apostilled by the New York Secretary of State and accompanied by a sworn Spanish translation
• At the Spanish Consulate General in New York — at 150 East 58th Street, New York, NY 10155 — which can certify signatures on Spanish-language documents directly

We prepare the Spanish power of attorney text and send it to you. Once apostilled (if using a US notary), we act on your behalf throughout the Spanish process.

Spanish Inheritance Tax for New York Heirs

Spain levies ISD on Spanish-located assets. New York heirs are entitled — following the extension of the ECJ 2014 ruling to non-EU nationals under Spanish domestic law — to the same regional tax reductions as Spanish residents.

In practice, this means:

• A New York family inheriting from a parent who owned a Costa del Sol property pays near-zero Spanish inheritance tax in Andalucía
• A property in Barcelona (Cataluña) attracts significantly higher Spanish tax
• Property in Mallorca or Gran Canaria benefits from very generous regional reductions

IRS Reporting Obligations: FBAR and FATCA

US persons inheriting foreign financial accounts must consider several IRS reporting obligations. See our dedicated guide: FBAR and FATCA: What Americans Must Report When Inheriting in Spain.

Key obligations include:

• Form 3520: Required when a US person receives a gift or inheritance from a non-US person exceeding $100,000 in a year
• FBAR (FinCEN 114): Required if you have signature authority or a financial interest in foreign accounts with aggregate value exceeding $10,000
• FATCA (Form 8938): Required if you hold specified foreign financial assets above threshold amounts

Failure to file these forms carries substantial penalties. We coordinate with your US tax adviser to ensure all reporting obligations are met.

NIE Numbers for New York Residents

Every heir needs a Spanish NIE. New York residents can apply through the Spanish Consulate in New York or we can process this remotely. We start this as the first step on instruction.

Timeline for a New York-Managed Spanish Estate

• Week 1–2: Contact us, NIE applications, power of attorney (signed at Spanish Consulate NY or apostilled US notary)
• Week 3–6: Registry searches, asset inventory, document gathering
• Month 2–4: Tax calculation, deed preparation, bank valuations
• Month 4–6: Spanish tax filed, notarial deed signed, assets registered