How Do Inheritance Laws Affect Property Abroad?
Quick Answer
France and Italy have forced heirship - children automatically inherit portions regardless of your will. Spain and Portugal allow choosing your home country law. Plan ahead with a local will.
Here's something that surprises many foreign property buyers: in some countries, your will doesn't matter as much as you think. Local inheritance laws can override your wishes about who gets your property.
This is called forced heirship. France is the classic example. French law reserves 50-75% of your estate for your children, depending on how many you have. You cannot disinherit them. If you die owning French property, your children have legal rights to that property regardless of what your will says.
Italy works similarly. Spouses and children have "legitim" rights - up to 75% of the estate is reserved for close family. You control 25%.
The good news: EU Regulation 650/2012 lets EU residents choose their nationality's law to govern inheritance. An American owning French property can specify in their will that American law applies, which generally allows you to leave property to whoever you want. But you must explicitly state this. If you don't, local law applies by default.
Spain has regional variations but generally allows non-residents to choose their home country law. Portugal reserves 50% for spouse and children but also allows opting for nationality law.
The practical solution: make a separate will in each country where you own property. Your Spanish will handles your Spanish property. Your Portuguese will handles Portuguese property. Your home country will handles everything else. This prevents conflicts between legal systems and ensures your wishes are clearly documented in each jurisdiction.
Inheritance tax is a separate consideration from inheritance rights. Portugal charges 0% for close family. Spain varies by region from 0-34%. France goes 5-45% depending on relationship and value. Italy runs 4-8%. These taxes apply regardless of inheritance law.
Work with a lawyer in each country where you own property to structure things correctly. Estate planning across borders is genuinely complex, and mistakes are expensive - both financially and emotionally for your heirs.