What Happens to a House in Spain or Mexico When You Are Gone
She had never asked what happens to the house when she dies.
Picture a woman named Hortense, 71. She is a US citizen who owns a small house abroad. Her two children live in the United States. She had never asked what happens to the house when she dies.
She wrote down what she could find. Most of it ended up as questions.
No single source covers how a foreign house passes to children who live in the United States. So this page lists what the sources say, and then the questions Hortense took to a local lawyer.
| Place | What the sources say |
|---|---|
| European Union (not Denmark or Ireland) | A succession regulation, number 650/2012, applies to deaths on or after 17 August 2015. It lets a person choose the law of the country of their nationality |
| Spain | The law taxes heirs (Ley 29/1987). Rates are reported at about 7.65% to 34% before regional reductions. Madrid is reported to reduce it by 99% for a spouse and descendants. Form 650 is reported due within six months |
| Mexico | Inheritances are reported to be exempt from income tax. Local property transfer fees are reported at roughly 2% to 4.5% |
| United States | For a US citizen, the estate and gift rules still apply abroad, according to the Internal Revenue Service |
| Foreign bank accounts | An FBAR report is required when foreign accounts together exceed US$10,000 |
"Reported" means the figure came from a secondary source, not a government page. Spain taxes by region, and the rules differ from one region to the next. A lawyer there could confirm each line.
Hortense read the table and saw how little it told her. "It tells me what exists. It does not tell me what happens to my house."
So she made a list for the lawyer.
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Which country's law decides who inherits my house? Could I choose?
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Does my US will count in Spain or Mexico, or do I need a local one?
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What papers would my children need to prove they are the heirs?
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Who pays the local tax or fee, and by what date?
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What would it take for my children to keep it, or to sell it, from the United States?
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Does an American accountant need to know about the house, the accounts, or both?
She also wrote a note to herself. "Ask for answers in writing, in English."
You could…
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Take the list to a local lawyer and bring the answers home to your children.
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Ask an accountant who works with Americans abroad about the US side.
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Keep a copy of the deed, the tax receipts and the lawyer's name with your other papers.
What did a lawyer tell you about your house abroad? Share it here. Someone reading may be holding the same list.
Figures are estimates for planning, based on public data. Sources: European e-Justice Portal (succession); Regulation (EU) 650/2012, Article 22; Spain, Ley 29/1987 and administracion.gob.es; The Local Spain (17 October 2024); dig.es (4 July 2023); Infobae Mexico (9 July 2026); Internal Revenue Service pages on filing abroad and on FBAR.
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