Case law on foreign trust recognition in Spain

As Spain has no trust regulations at a national level and did not sign the Hague Convention on Trust Recognition, most regions of Spain have forced heirship rules and—based on the Supreme Tribunal case of 2008—it is usually understood that Spain does not recognize foreign trusts. However, the analysis of the case law since 2008 shows a different scenario. If a Spanish settlor establishes an inter vivos foreign trust, such trust is considered legal and recognized. Furthermore, if the foreign trust is challenged by the heirs of the said Spanish settlor who argue there is a violation of forced heirship rules, such claims could only prosper once the trust is terminated and it can be proven there is an actual violation of forced heirship rules.