Editorial transparency and use of artificial intelligence
This article forms part of the CostaLuz Lawyers blog and is published for general informational and educational purposes only. It was prepared with the assistance of artificial intelligence tools and, before publication, was substantively reviewed and editorially approved by Maria de Castro, a Spanish-qualified lawyer registered with the Cádiz Bar Association under number 2745, founder of CostaLuz Lawyers and the person responsible for the editorial review of the published content.
This article does not constitute legal, tax, immigration, employment, estate-planning or investment advice and does not replace an individual assessment and the professional work of the appropriate CostaLuz Lawyers specialist. No action or omission should be based solely on this information.
As we’ve mentioned before, inheritance tax (IHT) in Spain is a complex matter and it can become even more complicated when the heirs and/or deceased are not resident in Spain for tax purposes.
Important: Spanish succession follows two distinct paths depending on whether the deceased left a valid will (testate) or not (intestate). The intestate path requires a Declaration of Intestate Heirs (Declaración de Herederos Abintestato) — a step not needed when a will exists. Learn more about the succession process →
Our dedicated inheritance section offers a comprehensive guide to many aspects including regional and national regulations for deductions and allowances.
In this post, we look at how to claim a life insurance policy in Spain, an important matter that is often overlooked in an inheritance process.
Specifically, we detail the process of claiming if you, the heir, is not resident in Spain or if you, the heir, are resident but the deceased was not.
IHT payment procedure
The form to file the corresponding IHT claim is 650, used if either the beneficiary or deceased is a non-resident in Spain.
- Download the form from the Spanish Tax Authorities website – go to Forms and then Inheritance.
- Fill in the form and accompany it with the required documentation (see below).
- Submit the form and documentation online or in-person to the National Tax Management Offices in Madrid.
Required documentation to claim a life insurance policy in Spain
- Original and copy of the deeds showing you have accepted the inheritance.
- Copy of the death certificate
- Copy of the certificate from the Last Wills Registry.
- Copy of the will.
- Copy of the life insurance policy or a certificate from the insurance company.
- Copy of your passport or identity document.
Non-resident beneficiary requirements
If you are not a tax resident in Spain, you must appoint a tax representative in Spain.
Non-Spanish documents
If any of the above documentation comes from authorities or officials in a country other than Spain, you must obtain a sworn translation of the document and get a Hague Convention Apostille for it.
Deadline for claims
Spanish tax Administration allows you a maximum of six months from the date of death to file the IHT tax for a life insurance policy. Time is therefore of the essence and you need to act quickly.
Did you know? If you’re a non-resident in Spain, you can apply for regional inheritance tax.
How to make a life insurance claim
At Costaluz Lawyers, we understand the complexities of inheritances in Spain and have guided dozens of clients through the process.
We offer expert advice and support and take care of all the paperwork and procedures for you at what is often a difficult time.
In addition, we provide tax representation, essential for non-resident heirs and useful for resident beneficiaries.
If you’d like a helping hand with making a life insurance claim in Spain (or any other inheritance aspect), get in touch now for a non-obligation consultation.
Disclaimer: This information is provided for general guidance purposes only and does not constitute personalised tax or legal advice. Each case must be assessed individually according to the client’s specific circumstances. It is essential to consult a qualified specialist before taking any action or making any decision.
Legal Notice: The content on this page is provided for general informational and educational purposes only. It does not constitute legal advice and should not be relied upon as such. No action should be taken based solely on this content without first seeking independent professional legal counsel. Each case requires individual assessment based on its specific circumstances. CostaLuz Lawyers accepts no liability for actions taken or not taken based on this content.
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Hi is it possible to cancel a Spanish life insurance policy and cash it in
Dear Martin:
Yes, it is generally possible to cancel a Spanish life insurance policy and cash it in, depending on the terms of your policy. If your policy has accumulated a cash value, you may be entitled to receive the surrender value upon cancellation, though this amount may be reduced by fees and penalties. The process usually involves submitting a formal cancellation request to your insurance company.
Be aware that cashing in your policy can have tax implications in Spain, as the amount you receive might be subject to income tax. Additionally, it’s important to review the specific terms of your policy to understand any potential penalties or conditions for cancellation.
If you need assistance with this process, we can connect you with a specialist who can guide you through the steps and help you understand the financial implications.
Please let us know if you’d like to arrange a consultation.