Inheritance tax in Spain: how it works and what your region charges

How Spanish inheritance tax works

Spain taxes the person who receives an inheritance. Each heir works out their own tax on their share. The amount depends on:

• the value of what they receive, less debts and funeral costs;
• their relationship to the deceased, in four groups;
• their own existing wealth, for the multipliers;
• which region's rules apply.

Anyone who inherits Spanish property pays Spanish inheritance tax on it, wherever they live. Spanish residents pay on everything they inherit, worldwide.

The four groups

After allowances, the state scale runs from 7.65% to 34%. The result is then multiplied by a coefficient from 1 to 2.4, depending on the group and the heir's existing wealth. Unmarried partners are often treated as strangers under state rules, though many regions treat registered couples as spouses.

Regional rules

The regions can change the allowances, rates and reliefs, and most have done so heavily. The Ministry of Finance's summary for 2025 lists ten regions that have "practically abolished" the tax for Groups I and II, with no limit on the amount:

• Cantabria and the Balearic Islands: 100% relief.
• Canary Islands: 99.9% relief.
• Andalucía, La Rioja, Murcia, Extremadura, Madrid, Castilla y León and Valencia: 99% relief.

Major regions for foreign buyers

• Andalucía (Costa del Sol, Costa de la Luz): 99% relief for Groups I and II. It also has a €1 million allowance per heir for close family on top.
• Valencia region (Costa Blanca): 99% relief for Groups I and II. The region has also approved a 50% relief for siblings, nephews and nieces from 1 June 2027.
• Madrid: 99% relief for Groups I and II.
• Murcia (Costa Cálida): 99% relief for Groups I and II.
• Catalonia (Costa Brava): bigger allowances, but the relief falls from 99% to 20% for children as the inheritance grows. Spouses get 99%.

Siblings, nephews, nieces and unrelated heirs still pay significant tax in most regions. Regional rules change often, so check the current figures with the regional tax agency or your lawyer.

Non-residents and the 2014 EU ruling

Until 2014, non-residents had to use the state rules and could not claim regional reliefs. On 3 September 2014, the EU Court of Justice ruled in case C-127/12 that this breached the free movement of capital. Spain changed the law from 1 January 2015. The main rules now are:

• If the deceased lived in another EU/EEA country, heirs use the rules of the region where most of the Spanish assets are.
• If the deceased lived in Spain, a non-resident heir uses the rules of the region where the deceased lived.
• Spanish Supreme Court rulings since 2018 have extended this to cases involving non-EU countries such as the UK and US. The tax agency now applies it in practice.

Non-residents usually file with the Agencia Tributaria in Madrid, not the regional office.

The UK and Spain

Spain and the UK have no double tax treaty covering inheritance. At a high level:

• Spain taxes the heir on Spanish property regardless of where anyone lives.
• The UK taxes the estate. Since April 2025, UK inheritance tax on worldwide assets depends on long-term UK residence, not domicile.
• Where both apply, the UK normally gives a credit for Spanish tax paid on the Spanish property.

Because one country taxes the heir and the other the estate, timing and amounts rarely match. A Spanish will covering Spanish assets is common and can speed things up. Take advice in both countries. The US has no estate tax treaty with Spain either.

Gifts during your lifetime

The same tax covers gifts. Most regions with a 99% inheritance relief give a similar relief on gifts to children and spouses, but often only if the gift is made before a notary. Giving property while alive also triggers plusvalía and, for the giver, capital gains tax. Take advice before gifting.

Deadlines and paperwork

1. Get a death certificate and a certificate from the Spanish wills register (Registro General de Actos de Última Voluntad).
2. Get NIE numbers for each heir. See NIE numbers.
3. Accept the inheritance before a Spanish notary, in person or through a power of attorney.
4. File and pay inheritance tax within six months of the death. You can ask for six more months within the first five.
5. Pay the plusvalía to the town hall and register the property in the heirs' names.

Heirs sometimes need to sell to pay the tax. See our guide to property taxes in Spain for what follows.

Check the property's legal position

Before accepting an inheritance, it helps to know what the property is worth and whether it carries debts or charges. If you'd like a second look, enter the address or referencia catastral on our free property check and we'll get back to you by email.