If you’re inheriting property, money, or other assets from someone in Spain — whether you’re a resident or not — you’ll likely be subject to Spanish inheritance tax.
But how much you pay depends on your relationship to the deceased, where the assets are located, and which region of Spain is involved.
In this guide, we explain how inheritance tax in Spain works for foreigners, including the rules, rates, exemptions, and tips to reduce your liability.
📌 Is Inheritance Tax Payable in Spain?
Yes. In Spain, inheritance tax (Impuesto sobre Sucesiones y Donaciones – ISD) applies when someone inherits assets located in Spain — whether the beneficiary is a Spanish resident or not.
You’ll owe Spanish inheritance tax if:
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The deceased was a Spanish resident, or
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The asset is in Spain (e.g. real estate), even if the heir lives abroad
🧮 How Is Inheritance Tax Calculated in Spain?
The tax amount depends on:
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Value of the inheritance
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Relationship between the heir and deceased
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Heir’s pre-existing wealth
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Autonomous community (region) – each has its own deductions and bonuses
💡 Inheritance tax is paid by the beneficiary, not the estate.
👪 Heir Classification for Tax Purposes
Spain classifies heirs into 4 groups:
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Group I: Descendants under 21 (children, grandchildren)
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Group II: Descendants 21+, spouses, parents
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Group III: Siblings, aunts/uncles, nieces/nephews, in-laws
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Group IV: Distant relatives, unrelated persons
💡 The closer the relationship, the higher the exemptions and lower the tax rate.
💶 Tax Rates and Exemptions (National Base Rates)
| Inherited Amount (€) | Tax Rate |
|---|---|
| 0 – 7,993 | 7.65% |
| 7,993 – 31,956 | 7.65% – 10.2% |
| 31,956 – 79,881 | 10.2% – 15.3% |
| 79,881 – 239,389 | 15.3% – 21.25% |
| 239,389 – 398,778 | 21.25% – 25.5% |
| Over 398,778 | 25.5% – 34% |
👆 These are base rates. Each Autonomous Community (region) applies its own bonuses, often reducing tax drastically for Group I & II heirs.
🌍 Foreign Heirs and Regional Tax Benefits
Historically, non-residents couldn’t benefit from regional tax reliefs. But due to EU court rulings, foreign EU citizens now can.
📢 And recently, non-EU residents have been granted equal treatment in most cases.
➡️ Result: Foreign heirs now often enjoy the same regional deductions as locals, including:
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Large exemptions (up to 99% in regions like Madrid, Andalusia, Valencia, Balearics)
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Deductions for spouses and children
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Special relief for inherited property and family businesses
🏘️ Inheriting Spanish Property as a Foreigner
If you inherit a house or apartment in Spain:
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Pay inheritance tax
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Transfer title at Land Registry
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Update cadastral record (IBI)
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Plan for capital gains tax if you sell later
You cannot legally sell inherited property until tax is paid and transfer formalized.
🕒 When and How to Pay Inheritance Tax in Spain
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Deadline: 6 months from the date of death
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Extensions: One-time 6-month extension (must be requested within the first 5 months)
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Payment: Through Modelo 650 or 652 (forms filed with the Spanish tax office)
Failure to file can result in surcharges, interest, or legal complications.
🛡️ Inheritance Tax Planning Tips
✅ Draft a Spanish will with national law choice
✅ Gift assets during lifetime where allowed
✅ Use life insurance policies (may be tax-exempt in part)
✅ Transfer assets via joint ownership or usufruct
✅ Work with an experienced Spanish inheritance lawyer
👩⚖️ How Borderless Lawyers Can Help
We guide international heirs through the full inheritance process:
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Calculating tax exposure
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Applying regional tax benefits
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Filing inheritance tax returns
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Transferring real estate and assets
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Resolving international probate conflicts