Foreign Property in a Will UK (2026): Overseas Assets, IHT & Two-Will Strategy
Updated 13 May 2026 · 9 min read · England & Wales
If you own property or financial assets in another country, your English will may not be enough on its own. The law of the country where the property is located — not English law — usually governs how that property passes on your death. Getting this wrong can mean your overseas assets pass to the wrong people, are frozen for years, or are subject to taxes you did not expect.
The core rule: lex situs governs immovable property
In private international law, immovable property (land, buildings, and rights attached to land) is governed by the law of the country where it is situated — lex situs. Your English will does not automatically determine who receives your Spanish villa or your French apartment, even if your English will purports to leave “all my property” to a named person.
For movable assets (bank accounts, investments, personal property), the law of the deceased’s domicile at death typically applies — which for most UK residents means English law.
Domicile and worldwide IHT exposure
Your domicile — not your nationality or residence — determines your IHT exposure:
- UK-domiciled: IHT applies to worldwide assets, including all overseas property and investments, at 40% above the nil-rate band (£325,000 + residence nil-rate band £175,000).
- Non-UK domiciled: IHT applies only to UK-situated assets.
- Deemed domiciled: people who have been UK-resident for 15 of the last 20 tax years are treated as UK-domiciled for IHT purposes, even if they consider themselves non-domiciled.
Most long-term UK residents who own overseas property are UK-domiciled and face IHT on their global estate. The overseas country may also charge its own equivalent of IHT — meaning the same asset can be taxed twice.
Double taxation on overseas assets
If the country where your overseas property is located also charges an estate or inheritance tax, you may face a double charge on the same asset. Relief is available through:
- Double taxation treaties: the UK has IHT treaties with a limited number of countries including the USA, France, the Netherlands, Ireland, Italy, Sweden, Switzerland, and a few others. Under a treaty, one country’s charge is credited against the other’s to prevent double taxation.
- Unilateral credit (IHTA 1984 s159): where no treaty exists, HMRC will give credit for overseas tax paid on overseas property against the UK IHT charged on the same property. The credit is limited to the lower of the two tax bills.
Check whether the country where your overseas property is located has a treaty with the UK before assuming double taxation will be avoided.
Forced heirship rules
Many countries — particularly civil law jurisdictions — impose forced heirship rules that override testamentary freedom for immovable property:
- France: children (including adult children) are entitled to a réserve héréditaire — a reserved share that cannot be overridden. One child: 50%; two children: two-thirds; three or more: three-quarters.
- Spain: two-thirds of the estate is reserved for legitimate heirs (children or parents). The legítima cannot be excluded by will.
- Germany: a compulsory share (Pflichtteil) of half the statutory intestacy share must be paid in cash to excluded close relatives.
- Italy: similar reserved portions for children and surviving spouses.
Under the EU Succession Regulation (Brussels IV), which applies in all EU member states (except Denmark), a UK national can elect for English law to govern their entire EU estate — including immovable property. An English law election avoids the forced heirship rules of the country where the property is located in most cases (France has a specific safeguard clause that may override the election in some circumstances). The election must be expressly included in your will.
The two-will strategy
For most people with property in one overseas country, the recommended approach is to maintain two wills:
- English will — covering all UK assets (property, bank accounts, investments, personal property in England and Wales)
- Local will — covering the overseas property, drafted in the local language by a qualified lawyer in the country where the property is situated
Each will must include a geographic limitation clause — critically important, because most wills contain a revocation clause (“I revoke all former wills”) that could accidentally revoke the other will when executed. The geographic limitation makes clear that each will covers only the assets in its territory:
“This will covers only my assets situated in England and Wales. It does not revoke any will or testamentary document that I may have made in relation to assets in any other jurisdiction.”
Similarly, the local overseas will should include a clause limiting it to assets in that country.
Practical steps for overseas property owners
- Identify what you own and where: list all overseas assets (property, bank accounts, investment accounts, company shares) with their country of location.
- Check whether you need local probate: many countries require a separate local grant to transfer land even when a UK Grant of Probate exists. A local lawyer in the overseas country can confirm this.
- Instruct a local lawyer in the overseas country to draft a local will that covers only the assets there. Brief them on your English will so the two documents are coordinated.
- Update both wills if your circumstances change — buying or selling overseas property, a change in relationship status, or changes to the tax law in either country can affect your position.
- Tell your executor that you have assets in another country, where the local will is stored, and the name of the local lawyer.
- Consider domicile planning if you have significant overseas assets and are considering establishing non-UK domicile — this is complex and requires specialist advice.
Assets that do not need a local will
Not all overseas assets require a local will or local probate:
- Jointly owned foreign property (survivorship): if you hold foreign property as joint tenants with right of survivorship, the property passes automatically to the survivor — though local law determines whether joint tenancy with survivorship exists in that country.
- Foreign pension and life insurance: proceeds typically pass directly to named beneficiaries outside the estate, subject to local rules.
- Small foreign bank accounts: some countries have small-estate procedures that allow limited funds to be released without full probate.
Frequently asked questions
Does my English will cover property I own abroad?
Your English will can attempt to dispose of overseas property, but whether it is effective depends on the law of the country where the property is located (lex situs). Many countries — including France, Spain, Italy, and Germany — apply their own succession laws to immovable property (land and buildings) located in their territory, regardless of what your English will says. In EU countries subject to the EU Succession Regulation (Brussels IV), you may be able to elect for English law to govern your entire EU estate if you are a UK national, but this option must be expressly stated in your will.
Do I need a separate will for property abroad?
Not always, but usually yes for land and property. A separate local will for overseas property has significant practical advantages: (1) it avoids delays while the foreign court waits for an apostille or certified translation of your English will; (2) it avoids the risk of the English will inadvertently revoking a previous local will (include a geographic limitation clause); (3) local lawyers understand the local formalities and forced heirship rules. For most people with property in one overseas country, two wills (one English, one local) is the recommended approach.
Is inheritance tax payable on overseas property if I am UK-domiciled?
Yes — if you are domiciled in the UK (or deemed domiciled), HMRC charges IHT on your worldwide assets, including overseas property. The standard rate is 40% above the nil-rate band (£325,000) and residence nil-rate band (£175,000). If the overseas country also charges an inheritance or estate tax on the same property, you may be able to claim double tax relief under a bilateral treaty or under IHTA 1984 s159 unilateral credit. The UK has double taxation treaties covering IHT with a small number of countries including the USA, France, Netherlands, and Ireland.
What are forced heirship rules and how do they affect my overseas property?
Many countries have 'forced heirship' rules that reserve a minimum share of an estate (particularly immovable property) for certain close relatives — typically children and a spouse — regardless of what the deceased's will says. France, Spain, Germany, and most civil law countries have such rules. In France, for example, children are entitled to a 'réserve héréditaire' — a reserved share that cannot be overridden by a will. EU Succession Regulation (Brussels IV) allows UK nationals to elect for English law to govern their entire EU estate, which can avoid forced heirship rules in some (not all) EU countries.
How does the EU Succession Regulation affect my will?
The EU Succession Regulation (Brussels IV) applies in all EU member states except Denmark, Ireland (partially). It provides that the law of a person's habitual residence at death governs their entire succession — but a national can elect for the law of their nationality to apply instead. For a UK national living in the UK, making an express election for English law to apply to your entire EU estate can be valuable — English law has no forced heirship rules, unlike most civil law countries. The election must be expressly stated in your will. Note: the UK is not bound by Brussels IV after Brexit, but UK nationals can still make the election in their EU wills.
What is the two-will strategy for overseas property?
The two-will strategy involves making one English will covering your UK assets and a separate local will (in the language of the relevant country, prepared by a local lawyer) covering your overseas property. Critical: each will must include a geographic limitation clause — for example, 'this will covers only my assets in England and Wales' — to prevent each will from revoking the other (most wills contain a revocation clause). The two-will approach avoids translation delays, apostille requirements, and foreign probate on an English grant, and ensures local formalities are correctly observed.
What happens to my overseas property if I die without a will?
For immovable property (land and buildings), the intestacy law of the country where the property is located applies. For movable assets (investments, bank accounts), the intestacy law of the country where you were domiciled at death applies. The outcome can vary dramatically: some countries give the surviving spouse full ownership; others apply strict shares between spouse and children; some have no provision for unmarried partners. In the absence of a will, a foreign court may take months or years to administer an overseas estate, particularly if there is a dispute among family members.
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- Domicile and inheritance tax in the UK
- Inheritance tax on property
- How to reduce your IHT bill
- Joint tenants vs tenants in common
- Estate administration step-by-step