Using Inherited Money as Your Deposit for a Spanish Mortgage
If the money for your Spanish property comes from an inheritance, the bank will still want to see exactly where it came from and how it reached your account. The checks are not harder than for savings, but they ask for different paperwork.
Who is behind this page. Colibrí Finances is the mortgage brand of PISOK NUEVO HOGAR, S.L., a credit intermediary registered with the Bank of Spain (code E480). We compare more than 20 Spanish banks for people who live abroad. The study is free; our fees are agreed in writing beforehand, and we support you all the way to signing. We answer in English.
Why Spanish banks look closely at inherited deposits
Every Spanish bank carries out anti-money-laundering checks on the deposit for a mortgage, whatever its origin. When the money comes from savings built up over years, a long run of bank statements is usually enough. When it comes from an inheritance, the bank needs a different, more specific trail: who left the money, when, and how it was transferred into your name before it reaches Spain.
For a buyer living in the United Kingdom, this generally means showing the probate or estate documents from the United Kingdom, together with the bank records of the transfer. None of this stops you using inherited funds as a deposit; it simply changes the list of documents your file needs from the first meeting onward.
Spanish banks usually ask non-residents for a larger deposit than residents; the exact share always depends on the bank, your country and your profile.
What the bank asks for when the deposit is inherited
A Spanish bank reviewing an inherited deposit will typically want the grant of probate or equivalent document confirming you are the beneficiary, together with evidence of how the estate was distributed to you. Alongside this, it still asks for the general file every non-resident buyer prepares: recent P60 and payslips, your last filed Self Assessment tax return, bank statements from the last three to six months, details of any existing loans or mortgage commitments, and a valid passport or UK national identity document.
Where documents are not in Spanish, a sworn translation is usually required, and some banks ask for an apostille on official UK papers such as the grant of probate. The exact list changes from one bank to another, which is one reason comparing several lenders in parallel saves time rather than approaching them one by one.
The key difference with inherited money is traceability: the bank wants an unbroken paper trail from the deceased's estate to the account you will use to pay in Spain, not just a lump sum appearing in your statements.
How this differs from savings or a gift
Savings are usually proved with a longer run of bank and payroll statements showing the money accumulating gradually. A gift from a living relative normally needs a signed letter from the donor explaining the relationship and the amount, plus proof of the donor's own funds. An inheritance sits between the two: it is a one-off transfer, like a gift, but it is backed by a formal legal process, so the probate paperwork plays the role that a donor's letter plays for a gift.
In every case, the bank is less interested in the amount itself and more in being able to show, document by document, that the funds are legitimate and that you are the rightful owner before they are used to buy a home in Spain.
NIE
Tax number first
You will need a Spanish NIE and a Spanish bank account before the inherited funds can be transferred and used to pay, whatever their origin.
90/180
Stays without a visa
As a British citizen you can stay in Spain up to 90 days in any 180-day period without a visa; longer stays to manage the purchase or the inheritance need a visa or residence permit.
3 %
On a future sale
If you later sell the Spanish property as a non-resident, the buyer withholds 3% of the price on account of your tax, separate from any inheritance paperwork.
Comparing the paper trail by source of funds
| Source of deposit | Core documents | Extra checks |
|---|---|---|
| Savings | Several months of bank and payroll statements | Consistency of regular deposits over time |
| Gift from a relative | Signed donor letter, donor's own statements | Relationship to donor, origin of donor's funds |
| Inheritance | Grant of probate, estate distribution record | Link between estate, beneficiary and transfer to Spain |
Practical steps before you apply
It helps to gather the probate documents and proof of distribution before you start comparing Spanish banks, since a complete file moves the study forward much faster. A local tax adviser should also confirm how the inheritance, and later any rental income or gains from the Spanish property, must be declared and reported to HMRC under the double taxation agreement between Spain and the United Kingdom, which avoids paying tax twice on the same income.
Because the United Kingdom uses the pound sterling rather than the euro, it is also worth planning the currency conversion in advance: the amount that leaves your UK account and the amount that lands in your Spanish account can differ with exchange-rate movements, and the bank will want the final euro figure clearly documented.
- Obtain the grant of probate and any estate accounts showing your share
- Keep records of the transfer from the estate into your own UK account
- Arrange a sworn translation, and an apostille if the bank asks for one
- Open a Spanish bank account and apply for your NIE early in the process
- Ask a tax adviser how the inheritance and the property should be reported to HMRC
If you live in the United Kingdom
Spain is a relatively short flight away from most UK airports, making regular visits to a Spanish property straightforward for owners based in Britain. Many British buyers are drawn to Spain for its climate, coastal lifestyle and established expatriate communities. One practical point to bear in mind is that Spanish inheritance law differs from UK rules, so it is worth taking specific advice on how it may affect the property and one's estate. Currency movements between sterling and the euro can also affect the overall cost of purchase and ongoing expenses.
What a Spanish bank will usually ask you for
- Proof of income: recent P60 and payslips
- Last filed UK tax return (Self Assessment)
- Bank statements from the last three to six months
- Evidence of existing loans or mortgage commitments
- Valid passport or UK national identity document
Tax at home and in Spain
Spain and the United Kingdom have a double taxation agreement in place, and a local tax adviser should confirm how rental income or gains from Spanish property must be declared and reported to HMRC.
Staying in Spain
As the United Kingdom is no longer an EU member state, British citizens may stay in Spain for up to 90 days in any 180-day period without a visa, and must apply for a visa or residence permit for longer stays.
Since the United Kingdom uses the pound sterling (GBP) rather than the euro, buyers should factor in exchange-rate movements and currency conversion costs when paying for a property or transferring funds to Spain.
Frequently asked questions
Do I need to prove the inheritance tax was paid in the UK before using the money in Spain?
Spanish banks generally want to see that the inheritance was correctly dealt with in the United Kingdom, including any grant of probate and estate accounts, rather than proof of a specific UK tax receipt. A tax adviser can confirm what HMRC needs separately, since this is reported under the double taxation agreement between Spain and the United Kingdom.
Can I use an inheritance that is still being processed through probate?
Most banks prefer the probate process to be finished and the money actually in your account before they count it as part of the deposit, since they need to see the completed transfer. If probate is ongoing, it is worth raising this early with the intermediary so the mortgage timeline can be planned realistically.
Does using inherited money change how much deposit the bank will ask for?
No, the deposit requirement comes from the bank, your country and your overall profile, not from where the money originates. The exact share is never fixed in advance; an inherited deposit simply needs a different set of supporting documents than money built up from savings.
Will the bank accept money inherited from someone who lived outside the UK?
It can, but the file usually needs the equivalent probate or succession documents from that country, often with a sworn translation and sometimes an apostille. Each bank reviews this case by case, so it helps to flag the details of the estate at the start of the study.
Do I still need a Spanish bank account if the deposit is an inheritance?
Yes. Whatever the source of the deposit, non-residents need a Spanish bank account and a Spanish tax number (NIE) to complete the purchase and to pay the notary, taxes and the bank itself, so these should be arranged early in the process.