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Date Published: 09/09/2025

If you have stepchildren in Spain, Thy Will Be Done can help drastically reduce inheritance tax

British stepchildren in Spain can avoid massive tax bills through professional legal adoption service

British expats living in Spain with stepchildren face a significant inheritance tax challenge that could cost their families tens of thousands of euros unnecessarily. There is a big difference in how Spanish law treats stepchildren compared to natural children when it comes to inheritance tax, but there's a straightforward solution that many families don't know about.

Spanish inheritance tax (IHT) operates on a group system that dramatically affects how much tax beneficiaries pay. Natural and adopted children fall into the more favourable group 2, while stepchildren are placed in group 3. This classification difference creates enormous financial implications for families.

For example, in the Valencia region, a natural or adopted child inheriting an estate worth €240,000 would pay just €208 in inheritance tax. However, if that same estate went to a stepchild, the tax bill would jump to nearly €85,000. That's a difference of more than €84,000 simply because of legal classification.

For British expats planning their estates in Spain, this disparity represents a major concern. While using an EU succession clause in a Spanish will can ensure that inheritance wishes are respected, it cannot eliminate the inheritance tax obligations that come with Spanish assets. The tax burden remains and for stepchildren, it can be financially devastating.

The solution, however, is remarkably simple. Adopting stepchildren legally moves them from group 3 to group 2 for inheritance tax purposes, immediately qualifying them for the same favourable treatment as natural children.

Age is not a barrier to this process, meaning adult stepchildren can still benefit from adoption.

Thy Will Be Done specialises in helping British families navigate this complex area of Spanish law. Their English-speaking legal team has extensive experience arranging family adoptions specifically to address inheritance tax planning. The process is designed to be as convenient as possible for families living across Spain.

One of the key advantages of their service is that neither the parent nor the stepchild needs to attend court proceedings in Spain. The appointed solicitor handles all legal requirements remotely and represents the family in court, making the process accessible regardless of where in Spain families are located.

The cost of this service is €995 plus IVA per stepchild, which represents significant value when compared to the potential inheritance tax savings. For a family facing the example scenario above, the adoption fee of approximately €1,200 total could save €84,000 in inheritance tax, making it one of the most cost-effective legal investments a family can make.

For British expats anywhere in Spain who have stepchildren and are concerned about inheritance tax implications, the company offers free consultations to discuss individual circumstances.

Their team can assess each family's situation and explain how the adoption process could benefit their specific inheritance planning needs.

Families interested in learning more can contact Thy Will Be Done on 865 756 058, Monday to Friday from 9am to 4pm.

The consultation process allows families to understand their options without any initial commitment, ensuring they can make informed decisions about their estate planning.

As their motto suggests, Where there's a Will, there's a Way.

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Helping British expats protect their assets in the UK and Spain

Thy Will Be Done inheritance, wills, estates and more legal services in Spain

If you're looking for expert, affordable legal and financial guidance for planning your future and protecting your assets both in the UK and Spain, Thy Will Be Done offers a full range of estate planning and advisory services you can rely on.

Specialising in legal wills, powers of attorney, probate and financial planning, this trusted firm supports British residents and expats through some of the most important decisions of their lives. Whether you're preparing a will, setting up a trust or need support navigating inheritance tax or equity release, their friendly and highly qualified team is here to help.

Services include:

UK and Spanish wills, including low-cost wills for parents with children under 18
Lasting Powers of Attorney
Property Trusts
Probate services with low fees
Pre-paid funeral plans in Spain with interest-free monthly payments
Estate planning and inheritance advice
Life insurance, pensions, investments, mortgages and equity release

Thy Will Be Done works in partnership with trusted legal and financial experts, including SRA-regulated solicitors in the UK and Spanish advisors fluent in English. Their team includes Director Paul Blackmoore, English-speaking Spanish solicitor Gabriel Padilla and financial advisor Chris Shaw.

Based in Spain and the UK, they also give back to the local community, donating €10 to charity for every new client in Spain.