EU Succession Regulation and Choice of Law for Mallorca Properties

Anyone who owns a property on Mallorca and has family or personal ties to several countries should not think of their will solely under national law. Since August 17, 2015, the EU Succession Regulation determines which inheritance law applies to cross-border estates.

Basic rule: one inheritance law for the entire estate

The regulation follows the principle of unity of the estate. As a rule, the entire estate is governed by the law of the state in which the deceased had their habitual residence at the time of death. For Mallorca, this means: a finca, apartment, or villa is not automatically subject to Spanish inheritance law simply because it is located in Spain.

Habitual residence

Habitual residence is not merely a registered address. It is determined by the duration and regularity of stay, family and social ties, center of life, reasons for stay, professional or economic connections, and actual lifestyle. Tax residency can be an indicator but is not automatically identical.

Choice of law as a central planning tool

A person may choose the law of the state whose nationality they hold to govern their entire succession. In the case of multiple nationalities, the law of any of those states may be chosen. This choice of law must be made expressly in the will or a comparable disposition.

Significance for Mallorca properties

Without a choice of law, if habitual residence is in Mallorca, Spanish inheritance law may become applicable. Since Spain has several civil law subsystems, it must also be examined which territorial civil law is relevant in the specific case. The EU Succession Regulation does not change Spanish tax, land registry, and registration formalities.

International families need clarity

Blended families, spouses with different nationalities, children in multiple countries, or unmarried partners should take the choice of law particularly seriously. Depending on the applicable law, inheritance shares, compulsory portion rights, and rights of the surviving spouse can differ significantly.

Separate compulsory portion, matrimonial property, and tax

Compulsory portion rights generally belong to the applicable inheritance law. Matrimonial property law, on the other hand, determines which assets fall into the estate in the first place. Taxes are not harmonized by the EU Succession Regulation; inheritance tax, deadlines, allowances, and double taxation issues must be examined separately.

Third countries, UK, and Switzerland

The regulation may also refer to the law of a non-EU state. British or Swiss nationals may therefore consider a choice of law in favor of their nationality law. In practice, the wording should be coordinated with advice in the relevant state, as not all states participate in the regulation's system.

European Certificate of Succession

The European Certificate of Succession is an optional document for cross-border estates. Heirs, legatees with direct rights, executors, or administrators can use it to prove their status and powers in other participating EU states. For a Mallorca property, it can simplify recognition within the EU but does not automatically replace all national documents.

Practical check

• Is there a current will with an express choice of law?
• Is it clear where the habitual residence would likely be?
• Does the planning align with the marriage contract, matrimonial property regime, and family structure?
• Are compulsory portion rights considered?
• Have Spanish tax and land registry consequences been examined separately?