The Sunlit Second Home: A Cross-Border Inheritance Guide for UK Families

A holiday home abroad is often the most emotionally charged asset a family owns. It carries memories of long summers, grandchildren by the pool and a slower pace of life. It is also, from an estate-planning perspective, a foreign immovable asset governed by local law and potentially subject to local inheritance taxes. For UK families with a villa in Spain, a farmhouse in France or an apartment in Italy, the central task is to ensure that affection for the property does not obscure the legal and fiscal realities.

UK inheritance tax does not stop at the coast

For UK-domiciled and deemed-domiciled individuals, inheritance tax applies to worldwide assets, not merely to property situated in the UK. A villa in Spain is therefore brought into the UK inheritance tax calculation, valued in sterling at the relevant date. The same is generally true of a French house or an Italian apartment. The asset may be outside the UK geographically, but it is not outside the UK tax net.

That does not mean the property is taxed twice without relief. Where a foreign inheritance tax or similar charge arises on the same property, relief may be available under a double taxation treaty or by unilateral relief. The detail matters, and the interaction between valuations, exemptions and local charges can be complex. In 2026, with the UK nil-rate band and residence nil-rate band subject to long-standing thresholds and taper rules, an overseas property can materially affect the overall inheritance tax position. Families should obtain a UK calculation that includes the foreign asset, rather than treating the overseas home as a separate world.

When a UK will is not the final word

A common misconception is that a well-drafted UK will automatically controls every asset wherever it is situated. For immovable property, succession is generally governed by the law of the place where the property is located. A UK will can express the deceased’s wishes, but local rules may determine who is entitled to the property and in what shares.

In Spain, France and Italy, forced heirship rules reserve a portion of an estate for certain close relatives, typically children and, in some cases, a surviving spouse. These rules can produce outcomes that surprise UK families. A parent may intend to leave a holiday home to one child, or to a surviving partner, only to find that local law protects another class of beneficiary. The precise rules differ between countries and, in Spain, between regions.

There is an important qualification. The EU Succession Regulation, often called Brussels IV, allows a person to choose the law of their nationality to govern their succession. The UK is not a party to the regulation, but participating member states such as Spain, France and Italy apply it. A carefully drafted choice-of-law clause selecting the law of England and Wales can therefore be effective in those jurisdictions. It must be properly prepared, and it does not remove local tax, registration or formalities. Nor is it a universal solution; advice in the jurisdiction where the property sits remains essential.

Ownership structure is not a magic wand

The way a property is owned can affect what happens on death, but it is rarely a simple substitute for advice. Joint ownership may provide survivorship in some circumstances, yet the local form of joint ownership may not operate as UK families expect. Adding a child to the title can create tax and control problems, and it may not avoid forced heirship. A local company can centralise ownership, but it introduces accounting, reporting and local tax consequences. Trusts are not universally recognised in civil-law countries, and a structure that appears efficient in the UK may be viewed differently abroad.

The better approach is to identify the objective. Is the aim to preserve the property for a particular child, to allow a surviving spouse to remain in it, to fund care fees, or to sell it without delay? The ownership structure should follow that objective, not precede it.

Appointing the right representative

A UK grant of probate may not be sufficient to deal with foreign immovable property. Many countries require a local grant, a local notarial process or the involvement of a locally appointed executor or representative. The practical consequence is that two probate processes may run in parallel, each with its own timelines and document requirements.

Where available, a European Certificate of Succession can assist in EU jurisdictions, but it is not a universal passport and its acceptance should be confirmed locally. The safer course is to appoint a trusted local representative in the jurisdiction where the property is situated, ideally someone who can work alongside the UK executor. This reduces the risk of delay, duplicated costs and missed deadlines.

A practical checklist for families

Begin with a clear inventory: the property’s title, its registered owner, its local value and any mortgage or charges. Review the UK will and any local will together, and consider whether a choice-of-law clause is appropriate. Confirm who will act as local executor or representative. Obtain local tax advice on inheritance, gift and wealth taxes, and UK advice on inheritance tax and relief. Keep valuations and ownership documents in a single place, and revisit the plan after marriage, divorce, bereavement or a significant change in family circumstances.

An overseas home should remain a source of pleasure, not a source of administrative conflict. The families who manage this best tend to be those who accept that two legal systems are in play and who take local advice before, rather than after, the property becomes an estate asset.