The Hidden Complexities of Bequeathing Property Overseas

2 June, 2026 6 minutes reading time

There is a distinct romance to owning property overseas. Whether it is a sun-bleached villa in Andalusia or a rustic stone farmhouse nestled in the valleys of the Dordogne, foreign assets often represent the culmination of a lifetime’s hard work, beautiful holiday memories, or a hard-earned retirement. Yet, when the time comes to pass these cherished assets to the next generation, that romance can quickly give way to a web of legal and administrative complexities.

Many homeowners mistakenly assume that a standard Will serves as a universal master key, unlocking their global estate upon their passing. In reality, cross-border inheritance is an intricate puzzle. Domestic intentions frequently clash with local laws, often leading to unintended delays, heavy taxes, and emotional distress for grieving families.

The Clash of Legal Systems

To understand why cross-border estate administration is so intricate, we must first examine the foundational differences between legal systems. Here in England and Wales, we operate under a common law system that prioritises testamentary freedom. Essentially, this means you can leave your estate to whomever you choose, subject to some statutory protections.

In contrast, much of continental Europe (including firm British favourites such as Spain and France) operates under a civil law system. These jurisdictions enforce a legal principle known as ‘forced heirship’. Under these rules, local law automatically reserves a significant share of your estate for specific protected heirs, typically your children and surviving spouse, regardless of what your Will says.

Many who own property overseas are surprised to learn that under local European law, they cannot leave a property entirely to a surviving partner if they have children from a previous relationship.

Ever-Changing European Landscape

Cross-border estate planning is a moving target. In international law, a doctrine known as renvoi can also come into play. This occurs when a foreign court looks at your estate, rejects its own jurisdiction, and refers the matter back to the law of England and Wales, or vice versa. This can completely alter which country’s rules apply to your assets.

Furthermore, local laws shift constantly, meaning exact rulebooks change over time. Many British owners rely on an EU regulation commonly known as Brussels IV to navigate this. Because Brussels IV applies to nationals of third states (countries like ours outside the EU) in exactly the same way it applies to EU citizens, the UK’s departure from the European Union did not alter how the regulation works for British property owners. You can still explicitly choose the law of your nationality (e.g., the law of England and Wales) to govern your overseas estate.

However, while Brussels IV remains valid, individual countries can introduce major caveats that complicate its practical application. A significant legislative shift in France perfectly illustrates this risk.

The French Compensatory Levy Trap

France introduced a significant amendment to its Civil Code (Article 913) that fundamentally disrupts traditional estate planning. This rule creates a ‘compensatory levy’ (prélèvement compensatoire) designed to protect reserved heirs.

If a deceased person or at least one of their children is a national of an EU member state, or actively resides in the EU at the time of death, the rules change completely. If the foreign Will uses English law to bypass French forced heirship, the children can actively claim financial compensation directly against the French assets. They can claim an amount up to the mandatory share they would have received under standard French law.

French notaires handling these successions now face a legal requirement to notify affected children of their right to claim this levy. If you have children from a previous relationship or face family estrangement, this mechanism can entirely shatter your assumptions about who ultimately inherits your French property.

Double Taxation

While navigating who gets the overseas property is complex enough, you must also consider who taxes it. A common misconception is that families only pay inheritance tax in one country.

The UK determines inheritance tax based on your domicile—a deep-rooted legal concept that reflects the country you consider your permanent home. If you maintain a domicile in England and Wales, HMRC will assess tax on your worldwide estate, including that foreign villa. At the same time, the country where the property sits will also seek its share of tax, because countries almost universally tax real estate within their borders.

To prevent you from facing a double tax bill, the UK holds double taxation treaties with several countries, including France. Where no comprehensive treaty exists (such as with Spain), HMRC provides a unilateral tax credit. However, navigating these calculations requires meticulous documentation and expert cross-border advice.

One Will or Multiple

A critical practical question is whether to have a single ‘worldwide’ Will or separate Wills for each country. While an English Will can technically cover global assets, it often significantly slows the administration process. A foreign court will require a legal translation, notarisation, and an apostille for the grant of probate before recognising it.

In most cases, the most elegant solution is to have separate Wills: an English Will for your domestic assets and a local foreign Will, drafted by a professional in that jurisdiction, for the overseas property. If you take this route, extreme caution is essential.

Standard Wills frequently include a clause stating, “This Will revokes all previous Wills.” If your English solicitor and your foreign lawyer do not coordinate, one Will could inadvertently cancel the other, leaving your estate in administrative limbo.

Our Advice

Managing a cross-border estate does not have to be overwhelming. Protecting your beneficiaries simply requires a systematic approach.

First, review your property titles carefully to understand the exact legal structure of your assets overseas. In France, alternative options such as setting up a special property company (Société Civile Immobilière) or utilising a tontine clause can completely alter how the law treats the property upon death.

Second, coordinate with your advisers so that your English solicitor and foreign legal counsel communicate effectively. Their documents must align perfectly with tax strategies to avoid accidental revocations.

Finally, prepare your executors for the process. Cross-border administration is time-consuming. Recent European updates also make it easier for heirs to resolve joint property disputes (indivision), but executors still encounter foreign institutions, certified translations, and strict tax deadlines.

Ultimately, international estate planning is about reflecting your lifestyle, not discouraging foreign ownership. Laws differ from country to country, so it’s wise to seek professional legal guidance from the start.

With thoughtful planning, you can smoothly pass on your overseas legacy to your loved ones, minimising bureaucracy. Don’t hesitate to get in touch with us for help with estate planning. We’re here to help.

Please note that all views, comments or opinions expressed are for information only and do not constitute and should not be interpreted as being comprehensive or as giving legal advice. No one should seek to rely or act upon, or refrain from acting upon, the views, comments or opinions expressed herein without first obtaining specialist, professional or independent advice. While every effort has been made to ensure accuracy, Curtis Parkinson cannot be held liable for any errors, omissions or inaccuracies.

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