UK residents inheriting from a Spanish, French, Italian, or German estate typically face two distinct currency moments: the EUR proceeds being released to a UK heir’s account (often via a foreign notaire’s escrow), and the conversion of those proceeds to GBP for use in the UK. The transfer is most cost-effectively handled via a specialist currency broker — margins of 0.3–0.8% versus 3–5% at high street banks save around £8,000 on a €250,000 inheritance. UK Inheritance Tax may apply depending on the deceased’s domicile, and most UK heirs do not pay tax twice under double taxation treaties.
That’s the headline. The detail matters because inheritance receipts are typically one-off, six-figure transfers — different from regular FX flows — and the timing is rarely yours to control. The notaire’s release date sets the rate, not the heir’s preference.
Who this guide is for
This guide is for UK tax residents inheriting from estates in Spain, France, Italy, Germany, or other EU countries. The estate is being administered locally (Spanish abogado, French notaire, Italian notaio, German Notar), proceeds are being released in EUR, and the heir wants those proceeds converted to GBP in a UK bank account. If you live in the EU and are inheriting from a UK estate, the mechanics reverse — a different guide applies.
What’s the currency challenge specific to inheriting from the EU?
Three things make inheritance receipts different from other large GBP/EUR transfers.
The timing isn’t yours. Property sales, relocations, and tuition payments have known dates that can be planned around. An EU estate process — granting probate equivalent, identifying assets, paying local taxes, distributing — often takes 6–18 months, and the final release date depends on the local lawyer’s timeline, not yours. By the time you know the release date, the EUR/GBP rate is whatever it is.
It’s typically a single, large receipt. Most inheritance proceeds arrive as one wire of €100,000 to €500,000-plus, rather than staged payments. That means full exposure to whatever the rate is on settlement day — no averaging out across multiple transfers.
The receiving bank can be the bottleneck. UK retail banks frequently impose 5–30 day holds on six-figure inbound EUR wires from EU notaire accounts, citing money laundering checks. Specialist brokers with EU banking partners typically clear the funds faster.
For the live EUR/GBP rate, see our EUR/GBP exchange rate page. For wider context on the pair this year, the pound to euro forecast 2026 covers the underlying drivers.
Country-by-country: what UK heirs need to know
The inheritance mechanics differ by country. The currency mechanics — EUR proceeds needing to become GBP — don’t.
Spain. A Spanish abogado or gestoría handles the aceptación de herencia (acceptance of inheritance) at a notary. UK heirs have six months from the date of death to file Modelo 650 (Inheritance and Gift Tax) and pay any Spanish IHT due — extensions to twelve months are available on application. Spanish IHT rates depend on relationship to the deceased and the autonomous community, and several regions (Madrid, Andalucía, Murcia) have near-100% reliefs for direct family. Proceeds are released after the escritura de herencia is signed.
France. The French notaire is central — they identify heirs, establish the acte de notoriété, calculate droits de succession (inheritance tax), and release funds from the estate’s blocked account. The standard timeline is 6 months from death to file the déclaration de succession. French IHT rates are higher than Spanish for non-direct heirs and the abattement (allowance) is lower for nieces, nephews, and unrelated beneficiaries.
Italy. Filed via dichiarazione di successione with the Agenzia delle Entrate within 12 months. Italian IHT rates are notably lower than France or Spain (4% for direct heirs above €1m). Property is automatically transferred at the Conservatoria once the declaration is filed and any imposta di successione paid.
Germany. The Erbschein (certificate of inheritance) is the key document, issued by the local probate court. German Erbschaftsteuer rates depend on relationship to the deceased and the value inherited. Class I heirs (spouse, children) pay 7–30%, Class III (unrelated) pay 30–50%. UK heirs filing for the Erbschein often need an apostilled copy of the death certificate and proof of UK address.
Tax circumstances vary widely. A qualified cross-border tax adviser regulated in both the relevant EU country and the UK should always be consulted before any large inheritance receipt.
What about UK Inheritance Tax on a foreign inheritance?
UK IHT generally applies based on the deceased’s domicile, not the heir’s. Three common scenarios:
- Deceased was UK-domiciled. UK IHT applies to the worldwide estate at 40% above the nil-rate band of £325,000 (plus residence nil-rate band where applicable). The estate, not the heir, pays.
- Deceased was non-UK domiciled. UK IHT generally applies only to UK-situated assets. Foreign property, foreign bank accounts, and foreign investments held by a non-UK domiciled deceased are typically outside UK IHT scope. Foreign IHT in the deceased’s country still applies.
- Deceased was deemed UK-domiciled (long-term UK resident under the rules effective from April 2025). UK IHT applies to the worldwide estate.
If both the deceased’s home country and the UK try to tax the same assets, the relevant double taxation treaty usually prevents double taxation. The GOV.UK guidance on Inheritance Tax foreign assets and the HMRC double taxation treaties register are the primary references. The UK has standalone IHT treaties with France and Italy and a broader provision with Spain.
UK heirs themselves don’t typically pay tax on receipt of an inheritance — the tax sits on the estate. But subsequent gains on inherited assets (selling inherited property, disposing of inherited shares) are subject to UK Capital Gains Tax against the value at the date of death — see the GOV.UK Capital Gains Tax guidance.
How do you transfer EU inheritance proceeds to the UK?
A typical end-to-end process:
- Wait for the local estate process to complete. Don’t open broker accounts or commit to FX dates until the local lawyer confirms when EUR funds will be released. Inheritance timelines slip routinely.
- Open a specialist currency broker account in the UK. UK ID verification typically takes one working day. Do this 2–4 weeks before the expected release date — not before.
- Provide source-of-funds documentation. A copy of the escritura de herencia / acte de notoriété / Erbschein / dichiarazione di successione, plus a death certificate and proof you are the named heir, will satisfy UK money laundering compliance.
- Confirm how the funds will be released. Three patterns are common: wire from the local notaire’s escrow account directly to your UK broker’s segregated EUR client account; wire to a Spanish/French/Italian/German bank account opened by the heir specifically for receipt, then on-transfer to the UK broker; or release as a cheque bancario (bankers’ draft) handed over at the notary.
- Lock in your EUR/GBP rate at the moment funds clear — or earlier via a forward contract once the release date is firm.
- Receive GBP in your UK account. A specialist broker typically pays GBP to a UK account within 1–2 working days of EUR clearing.
- Keep records. UK banks may ask source-of-funds questions even after receipt. Hold the EUR→GBP conversion records for at least seven years for HMRC purposes.
How much can EUR/GBP move during a 12-month estate process?
EUR/GBP has moved 5–8% over single 12-month periods in three of the last five years. On a €300,000 inheritance, that’s £13,000–£20,000 of swing in the GBP value of your proceeds — not money you can “wait for” because you don’t control the release date.
Anthony Bull, CEO of Cambridge Currencies, comments that inheritance receipts are the FX use case where heirs most often regret waiting. A property sale or a relocation has a target date. An inheritance has whatever date the lawyer settles on, and “the pound looks weak right now, let’s wait” usually means leaving the funds in EUR for months while the rate moves further the wrong way. The right question isn’t “when’s the best rate?” but “what’s the cost of certainty today versus the risk of leaving it open?”
What are the practical solutions for an EU inheritance receipt?
Three patterns that work for inheritance specifically:
| Approach | When it fits | Trade-off |
|---|---|---|
| Spot transfer on settlement day | One-off receipt, no view on near-term rate, want closure quickly | Full exposure to the day’s rate — no protection if it’s a bad day |
| Forward contract once release date is firm | Local lawyer has confirmed a release date 30–90 days out | Fixes the rate today; small upfront deposit; gives up upside if EUR/GBP moves favourably |
| Staged spot conversions over 30–60 days | Inheritance is paid in tranches (rare in EU estates) or you have a six-month UK spending plan | Averages out short-term volatility; not useful for a single lump-sum receipt |
For most six-figure EU inheritance receipts where the local lawyer has confirmed a release date, a forward contract on 60–80% of the expected proceeds is the standard pattern. Will Stead, head of currency at Cambridge Currencies, observes that around 65% of UK heirs receiving EU inheritance proceeds via Cambridge fix at least part of the rate in advance — usually once the local notary has confirmed the settlement date and the EUR amount is firm.
Worked example: a €250,000 Spanish inheritance
A UK-resident son inherits €250,000 from a Spanish father, after Spanish IHT and notary fees. The Spanish abogado confirms a release date 60 days out.
- Specialist broker, spot on release day at EUR/GBP 1.16 → £215,500 received
- Specialist broker, forward contract locked at 1.18 today → £211,860 received, certainty
- UK high street bank wire on release day at the bank’s retail rate of 1.12 → £223,200 received but at a 3% margin (around £6,500 lost vs interbank)
The forward contract path delivers ~£3,600 less in this specific example because the spot rate moved favourably, but it removed the risk of the rate moving against the heir by 2–3% in the other direction. The bank wire path looks superficially similar to the spot rate but loses roughly £6,500 to the retail margin — money you don’t see in the headline number.
Common mistakes UK heirs make with EU inheritance receipts
- Accepting the local bank’s onward wire to a UK retail bank. The wire goes EUR→EUR to the heir’s UK retail GBP account, then the UK retail bank converts at its own (poor) margin. Multiple layers of cost. A specialist broker with a EUR receiving account avoids this.
- Sending the EUR to Wise/Revolut for “free conversion”. Works for sums under ~£20,000. For six-figure inheritance receipts, the source-of-funds compliance often slows it down considerably, and the rate isn’t materially better than a specialist broker at that size.
- “Waiting for a better rate” with funds in EUR. Inheritance proceeds are not a trading position. Funds sitting in EUR for “the next month” have just moved you out of one currency and into another without consent — exactly the FX exposure most people are trying to avoid.
- Not telling the UK broker about the inheritance source upfront. Disclosing the source of funds at account opening — not when the wire arrives — prevents 30-day compliance holds on the inbound EUR.
How a specialist broker helps for an EU inheritance receipt
Four practical reasons:
- EU banking partners. A specialist broker with EUR receiving accounts in Spain, France, Italy, and Germany typically processes inbound notaire wires faster than UK retail banks, which often impose 30-day holds.
- Better rates above £25,000. Specialists work on tighter margins because their average ticket size is higher.
- Forward contracts during the release window. Once the local lawyer has confirmed a release date, fixing the EUR/GBP rate on 60–80% of expected proceeds removes the volatility risk during the final weeks of the estate process.
- Source-of-funds compliance handling. Inheritance proceeds raise specific UK money laundering questions. A specialist broker handles these directly using the local probate documents — UK retail banks frequently bounce the wire back for further evidence.
Cambridge Currencies operates via FCA-authorised partners Currencycloud (FRN 900199) and ScioPay (FRN 927951). Client funds are held in safeguarded client accounts throughout the transfer process. For more on the broader EUR repatriation theme, see our transferring large amounts of euros to pounds page and our transferring an inheritance from abroad to the UK generic guide.
Frequently asked questions
UK Inheritance Tax generally applies based on the deceased’s domicile, not the heir’s. If the deceased was UK-domiciled, UK IHT applies to the worldwide estate. If the deceased was non-UK domiciled, UK IHT generally applies only to UK-situated assets, with foreign IHT applying in the deceased’s country. Double taxation treaties usually prevent the same assets being taxed twice. UK heirs themselves don’t typically pay tax on receipt — the tax sits on the estate.
Typical EU estate timelines run 6–18 months from date of death to release of proceeds. Spain has a 6-month filing deadline (extendable to 12), France typically takes 6–12 months for the notaire process, Italy allows 12 months, and Germany varies depending on whether an Erbschein is required. Releases routinely slip — don’t book FX commitments until the local lawyer has confirmed a date.
For proceeds above £25,000, a specialist currency broker typically gives the best rate, with margins of 0.3–0.8% versus 3–5% at high street banks. On a €250,000 inheritance that’s the difference between paying around £700 in margin versus £8,000. Specialist brokers with EU banking partners also clear inbound wires faster than UK retail banks, which often impose 30-day holds.
Yes, once the local lawyer (notaire, abogado, notaio, Notar) has confirmed a settlement date. A forward contract through a specialist broker fixes today’s rate for a payment up to twelve months ahead, with a 10% deposit on booking and the balance on receipt. For most six-figure inheritance receipts where the release date is 30–90 days out, a forward on 60–80% of expected proceeds is standard.
Six-figure inbound wires from EU notaire accounts trigger UK money laundering and source-of-funds checks at retail banks. Holds of 5–30 days are common, particularly if the heir hasn’t pre-disclosed the inheritance source. Specialist currency brokers handle these compliance checks at account opening using the probate documents, avoiding the hold delays.
Not usually necessary, and typically more expensive overall. Local bank accounts charge to clear notaire wires (often 0.4–1%), then charge again to wire EUR onwards. A specialist broker with EU banking partners receives directly from the notaire, converts to GBP, and pays the UK account in one workflow. Local accounts are only useful if the inheritance is being received in stages or if you’re keeping some EUR for use in the country.
Yes. UK residents pay UK Capital Gains Tax on the gain between the value at the date of death (the “step-up basis”) and the sale price, with credit for any local CGT paid. Local CGT also applies in the country where the property is located — Spain charges 19% on non-resident gains, France’s plus-value applies to non-residents, and Italy and Germany have their own regimes. Speak to a qualified cross-border tax adviser before selling.
Speak to a Cambridge Currencies specialist about your EU inheritance
If you’re inheriting from a Spanish, French, Italian, German, or other EU estate and want clear guidance on the EUR/GBP rate, the option of a forward contract once the release date is firm, and a single named dealer to handle the receipt by phone, request a quote and we’ll talk you through it. We work routinely with UK heirs across all major EU jurisdictions.
