Does an Anglo-American Trust Work for Spanish Property? What Spanish Law Says

A trust that works perfectly well for a UK or US asset does not simply carry over to a Spanish property — Spanish civil law has no equivalent concept, and the Supreme Court has said so directly.

Why the trust concept doesn’t translate

Spain’s civil law system treats ownership as a single, unified right. A trust’s core mechanism — splitting legal title from beneficial ownership — has no equivalent in that framework, which is why the trust as a legal instrument simply does not exist under Spanish law, either in substantive law or in private international law.

The Spanish courts have addressed this directly

This is not a theoretical gap — the Spanish Supreme Court expressly confirmed the non-recognition of trusts under Spanish law in Judgment 338/2008 of 30 April, which remains the leading authority on how Spanish courts treat trust structures.

Spain hasn’t joined the international framework either

The 1985 Hague Convention on the Law Applicable to Trusts and their Recognition is the main international instrument other countries use to recognise foreign trusts across borders. Spain has neither signed nor ratified it, which closes off that route to recognition as well.

A foreign trust isn’t entirely without relevance

A trust set up abroad is not simply irrelevant to a Spanish asset — it can still be relevant evidence of succession intent or asset history. But Spanish law independently determines how the Spanish property itself is legally treated, regardless of what a foreign trust document assigns or claims.

What actually works instead

The standard, recognised route is a Spanish will, combined with the choice-of-law mechanism in EU Regulation 650/2012, which lets a non-Spanish national elect their national succession law to govern Spanish assets. It is a structure built on mechanisms Spanish courts will actually enforce, rather than one they have already said they will not.

Call us today on +34 919 499 342 or email marialuisa@costaluzlawyers.es if you are relying on a foreign trust and want your Spanish estate planning built on something Spanish courts will actually recognise.

Frequently Asked Questions

Can I put my Spanish property into a trust the way I might in the UK or US?

No, not in the way common-law trusts work — the trust concept is incompatible with Spain’s civil law system, which treats ownership as a single, unified right rather than splitting it into legal and beneficial title the way a trust does.

Has this actually been tested in Spanish courts?

Yes — the Spanish Supreme Court has expressly confirmed the non-recognition of trusts under Spanish law, in Judgment 338/2008 of 30 April, which remains the leading authority on the point.

Has Spain signed the international convention that recognises trusts across borders?

No — Spain has neither signed nor ratified the 1985 Hague Convention on the Law Applicable to Trusts and their Recognition, the main international instrument other countries use to recognise foreign trusts.

If I already have a trust set up abroad, is it completely irrelevant for my Spanish property?

Not entirely irrelevant as evidence — a foreign trust can still be relevant for showing succession intent or asset history, but Spanish law will independently determine how the Spanish asset itself is legally treated, regardless of what a foreign trust document says.

So what should I use instead of a trust for Spanish estate planning?

A Spanish will alongside proper use of EU Regulation 650/2012, which lets non-Spanish nationals choose their national succession law for Spanish assets, is the standard, recognised route — built around Spanish or EU legal mechanisms rather than a trust that Spanish courts will not enforce as such.

A US LLC is another structure that comes up for the same reason — our guide to owning Spanish property through a US LLC covers the tax transparency issue that undermines it.