Spanish Inheritance Tax

Inheritance Tax in Spain: Guidelines for Residents & Non-Residents

At Perez Legal Group, we provide inheritance tax support across all of Spain, including the Spanish islands. Arrange a consultation today to learn how we can help you!

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Who has to pay inheritance tax in Spain?

Tax authorities in Spain impose a tax on assets or money received as an inheritance or gift in Spain. Known as the Impuesto sobre Sucesiones y Donaciones (ISD), this Spanish succession tax is paid by the beneficiaries, not the deceased’s estate.

This means the tax is not taken from the estate before distribution – each beneficiary must pay tax on the value of their individual inheritance or gift.

You will be liable for Spanish inheritance tax if you inherit property in Spain or other assets from a Spanish resident, or if you are a resident in Spain yourself and inherit assets outside of Spain. This includes bank accounts and business interests.

Under the rules of Spanish inheritance tax for non-residents, beneficiaries who live outside of Spain only have to pay inheritance tax on Spanish assets (located in Spain). Inheritance tax in Spain for residents is different, as beneficiaries who are Spanish residents must also pay tax on worldwide assets.

Descendants and spouses usually have a tax-free allowance, while non-direct relatives or friends will have to pay more tax on inherited assets.

It is also important to note that even after paying the succession tax, accepting an inheritance in Spain could make you liable for Spanish property tax or Spanish wealth tax, depending on the type, value, and location of the assets you take ownership of.

How much is Spanish inheritance tax?

How much inheritance tax you pay in Spain will depend on several factors, beginning with your relationship to the decedent (the deceased estate owner).

For example, there is no tax-free allowance for distant relatives, but there are increasing allowances for direct relatives and dependants.

You can find out more about the personal allowance thresholds for inheritance tax in Spain by reading the FAQs on this page.

This initial allowance is deducted from the total inheritance value to find the amount that can be taxed. Then, as shown in the table, the national base rate for this amount is applied, and the resulting number will be multiplied by a coefficient known as a wealth and kinship multiplier – but this still isn’t the final bill.

The applicable base rate will be multiplied by a number from 1 to 2.4%, depending on the beneficiary’s existing wealth and their relationship to the deceased person.

Regional allowances can then be applied to calculate the final total.

There are 17 autonomous communities (comunidades autónomas) in Spain, which the Spanish tax agency (Agencia Tributaria) permits to set their own allowances.

Several regions have introduced substantial inheritance tax reductions, which means that direct family members can now enjoy up to 99.9% reductions in regions such as Andalucia, Madrid, Murcia, and the Balearic Islands.

However, this also means that a Spanish inheritance tax bill can vary drastically depending on where the deceased lived if they were a resident, or the location of the highest-value assets in Spain if the deceased was not a resident.

Changing rules and rates can make this a confusing process, so you should seek expert legal advice on the latest regulations before making any decisions regarding the disposal or acceptance of assets in Spain.

Spanish Inheritance Tax Rates

After any personal tax-free allowance has been deducted, these national base rates are used as the starting point to calculate an inheritance tax bill:

Taxable Amount	Base Tax Rate
0€ – 7.993€	7.65%
7.993€ – 15.981€	8.5%
15.981€ – 23.968€	9.35%
23.968€ – 31.956€	10.2%
31.956€ – 39.943€	11.05%
39.943€ – 47.931€	11.9%
47.931€ – 55.918€	12.75%
55.918€ – 63.906€	13.6%
63.906€ – 71.893€	14.45%
71.893€ – 79.881€	15.3%
79.881€ – 119.758€	16.15%
119.758€ – 159.635€	18.7%
159.635€ – 239.389€	21.25%
239.389€ – 398.778€	25.5%
398.778€ – 797.555€	29.75%
Over 797.555€	34%

Last reviewed: June 2026

Contact an inheritance expert in Spain at Perez Legal Group

With years of experience in inheritance tax planning and managing Wills in Spain, you can come to Perez Legal Group whether you want to plan for the future with proactive inheritance tax management or need help claiming an inheritance in Spain and paying associated taxes.

Not only can we provide advice on how to legally reduce inheritance tax in Spain and information on the relevant documentation, but we can also assist with completing NIE applications, filing documents in Spain, and setting up a Power of Attorney so we can manage the distribution of your estate and/or the inheritance tax considerations on your behalf.

Call us on 020 36 95 23 30 (UK) or +34 952 833 169 (Spain), or fill out the contact form below and we will be in touch as soon as possible.

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Frequently Asked Questions

Does a spouse pay inheritance tax in Spain?

Yes, surviving spouses must pay inheritance tax in Spain if they inherit Spanish assets that belonged to their deceased spouse. However, personal allowances for spouses and regional allowances can significantly reduce the amount of tax due.

Spouses are considered Group II relatives, meaning they have a tax-free base of 15,957€. Plus, if the spouse inherits the married couple’s jointly owned property, only the 50% share that belonged to the deceased spouse is liable for inheritance tax.

There is also a family home allowance, which offers an inheritance tax exemption of 95% if the deceased spouse was a Spanish resident for at least 3 years and bequeathed their principal residence or family business (in Spain) to a spouse, parent, or child who lived with them for at least 2 years before their death.

The principal residence must be valued at less than 122.606€ (there is no limit for a business), or the inheritance mustn’t exceed 122.606€ per heir.

Normal inheritance tax rates apply above this – for example, if the residence is worth 150.000€, you will only pay 5% tax on the first 122.606€ and then the full rate on the remaining balance of 27.394€. The inheritor must retain ownership of the property for a minimum of 10 years, but if they die within this period, no further tax is payable. If the property or business is sold during this period, tax may be levied at the discretion of the relevant authorities.

The location of the assets may also entitle the spouse to greater allowances due to regional rules. If you need help understanding inheritance tax for spouses, the experts at Perez Legal Group can help you navigate these complicated systems.

What is the inheritance tax threshold in Spain?

There is no single straightforward threshold for Spanish inheritance tax, as this is determined based on the circumstances of the donor and recipient. Inheritance tax and gift tax liability depend on your relationship to the donor, the amount inherited, and your wealth before receipt of the gift or inheritance.

Firstly, Spain determines personal tax-free allowances based on these groups:

Group I – Children under 21 years old can receive up to 47.859€ tax-free (a base of 15.957€, plus 3.991€ for each year under 21).
Group II – Direct descendants over 21 years old (adult children), spouses, and direct ascendants (parents and grandparents) have an allowance of 15.957€.
Group III – Third–degree relatives and ascendants by affinity (siblings, uncles or aunts, and nieces or nephews) have an allowance of 7.993€.
Group IV – Unrelated people and more remote relatives (including unmarried common-law partners) do not have a tax-free allowance.

In some autonomous communities, the regional rules may recognise unmarried couples (parejas de hecho) as Group II. Some regions also allow much higher personal allowances for direct descendants and spouses, which are applied afterwards.

Since rates and allowances can vary between regions, it can help to consult an inheritance tax adviser. Whether you’re concerned about arranging the inheritance of your assets in Spain or becoming a beneficiary, Perez Legal Group can help you.

Do you have to pay Spanish inheritance tax on property if you live abroad?

Yes, if you live abroad and inherit a property in Spain, this will be subject to taxation by the Spanish authorities, which you must pay as the beneficiary.

Inheritance tax on property in Spain for non-residents is mostly the same as it is for residents. Following a change in the law in 2015, non-residents are no longer charged higher tax rates than residents.

Initial tax-free allowances for non-residents are also relationship-based. Typically, state rules apply if the deceased was not a Spanish resident or the beneficiary lives abroad, but residents in European Union (EU) or European Economic Area (EEA) countries may also be entitled to claim regional tax reductions.

You should also be aware that if your domicile for tax doesn’t have an agreement with Spain to prevent double taxation, you may also be subject to inheritance tax in your home country for the same property. Depending on the location, any amount paid in another country may be deducted from the amount owed in Spain.

With all of these factors at play, it is important to get professional advice from experts on non-resident tax in Spain, like the team at Perez Legal Group.

We can assist you with applying for an NIE number (Número de Identificación de Extranjeros), paying inheritance tax on Spanish property, and filing all the documents you need to claim the property, liaising with the authorities on your behalf.

Is there a deadline for paying inheritance tax in Spain?

Inheritance tax is payable by beneficiaries within six months of a death if this occurred in Spain, and within 30 business days of the transfer of a lifetime gift.

If a death occurs abroad, the inheritance tax declaration and the payment of inheritance tax duties must be made within 16 months.

This means most beneficiaries have exactly six months from the date of the death to declare their inheritance to the tax authorities and pay any tax owed. This must be done before a beneficiary can claim the Spanish assets that have been left to them.

It is possible to obtain a six-month extension (up to one year) if you apply within five months. The tax agency may allow you to defer payment or pay in instalments, but an extension is usually only granted if there are no Spanish assets to pay the tax with and if all heirs sign the application.

If you are permitted to defer payment of inheritance tax in Spain, you should note that the authorities will still charge interest on extended payments.

Tax is assessed on the net amount received and accrues from the date of death or the date of a gift. Should you miss the six-month deadline for paying Spanish inheritance tax without an approved extension, this will trigger penalty surcharges and late payment interest, starting at 5% and increasing up to 20%.

To make sure you file and pay your taxes in Spain on time, seek assistance from the experienced team at Perez Legal Group today.