When an estate includes property, bank accounts or investments held abroad, UK probate alone is rarely sufficient. We guide executors through the complexities of international estate administration.
Key principle: immoveable vs moveable assets
Land and property abroad is always governed by the law of the country where it is situated — UK probate does not extend to foreign land. Moveable assets (bank accounts, investments) are generally governed by the law of the deceased's domicile, which for most UK residents means UK law applies worldwide.
Different types of overseas assets are treated differently in law. Understanding the distinction is essential to planning the administration correctly.
Property owned abroad — whether a holiday home in Spain, France or Portugal, or an investment property elsewhere — is subject to the law of the country where it is situated. UK probate does not automatically extend to foreign land.
Foreign bank accounts are generally treated as moveable assets and may be governed by the law of the deceased's domicile (usually the UK). However, individual banks have their own requirements and some will insist on local legal process.
Shares in foreign companies or investments held through overseas platforms may require local legal process to transfer. The position depends on whether the shares are registered in the deceased's name and the rules of the relevant country.
Vehicles, boats and personal effects located overseas are generally treated as moveable assets. In most cases these can be dealt with under UK probate, though local requirements vary.
Shares in foreign private companies, partnership interests or sole trader businesses abroad require careful analysis of both UK and local law. Business succession planning is particularly important for cross-border estates.
Cryptocurrency and digital assets have no fixed location. UK HMRC treats them as UK-sited assets for domiciled individuals. However, accessing them requires the private keys — which must be identified and secured early in the administration.
The process for dealing with overseas assets follows a broadly consistent pattern, though the detail varies significantly by country and asset type.
A full inventory of overseas assets must be compiled — property, bank accounts, investments, vehicles and any other assets held abroad. This often requires correspondence with foreign institutions and may need local legal assistance.
Domicile is the key concept in international estates. If the deceased was domiciled in England and Wales, UK law governs their moveable assets worldwide. Immoveable assets (land and property) are always governed by the law of the country where they are situated.
In most cases, a UK grant of probate or letters of administration is obtained first. This is then apostilled (authenticated for international use) and sent to the relevant foreign jurisdiction.
For foreign property and assets requiring local probate, local lawyers in the relevant country must be instructed. PDA Law works with trusted international legal networks to coordinate overseas estate administration.
UK inheritance tax applies to the worldwide estate of UK-domiciled individuals. Double taxation treaties exist with some countries to prevent the same assets being taxed twice. Foreign tax paid may be credited against UK IHT.
Once all overseas assets have been realised or transferred, the estate can be distributed to beneficiaries. This may take considerably longer than a purely domestic estate — 18 months to 3 years is not uncommon for complex international estates.
The most common countries where UK residents hold overseas assets — and the key legal points for each.
Spanish succession law applies to Spanish property. Non-resident heirs may elect EU Succession Regulation (Brussels IV) to apply UK law. Local notary and tax filings required. Inheritance tax varies by region.
French property is subject to French succession law. Brussels IV allows UK law to apply if elected. French notaire required. French inheritance tax applies to French property regardless of UK IHT.
Portuguese property requires Portuguese probate. Brussels IV applies. Portuguese stamp duty (10%) applies to non-spouse/child beneficiaries. Notarial process required.
US assets (bank accounts, investments, property) require US probate in the relevant state. The UK-US estate tax treaty prevents double taxation. US estate tax may apply to US-sited assets above the threshold.
Australian assets require resealing of the UK grant in the relevant Australian state. No inheritance tax in Australia. Superannuation (pension) assets are dealt with separately outside the estate.
Irish property requires Irish probate. The UK grant can be resealed in Ireland. Irish Capital Acquisitions Tax (CAT) applies to Irish assets and to Irish-resident beneficiaries.
This is a general overview only. The law in each country changes and individual circumstances vary. Always take specific legal advice for the country concerned.
If the deceased was domiciled in the UK, their worldwide estate — including all overseas assets — is subject to UK inheritance tax at 40% above the nil-rate band (currently £325,000).
Double taxation treaties with countries including the USA, France, Ireland, India and others prevent the same assets being taxed twice. Foreign tax paid can be credited against UK IHT.
Where no treaty exists, HMRC may allow unilateral relief for foreign tax paid, but this is not guaranteed.
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