Spain applies inheritance tax (ISD) and gift tax (Donaciones) at the regional level, and each autonomous community — including Valencia — sets its own rates, reductions, and procedures.
As a foreigner, your exposure to tax depends on:
-
Where the property is located
-
Where the donor/deceased lived
-
Your residency and relationship to them
Let’s break it down.
🏘️ When Does Inheritance or Gift Tax Apply?
| Scenario | Tax Type |
|---|---|
| You inherit property in Valencia from a relative | Inheritance Tax (ISD) |
| You receive property as a living gift (e.g., parent to child) | Gift Tax (Donaciones) |
📌 These taxes apply whether you live in Spain or abroad.
📊 Tax Rates in the Valencia Region
Valencia uses progressive tax rates, based on the value of the inheritance/gift and your relation to the donor.
👉 Base Tax Rates
| Value of Inheritance/Gift | Tax Rate |
|---|---|
| Up to €50,000 | 7.65% – 10.20% |
| €50,000–€300,000 | 11.90% – 15.30% |
| €300,000–€800,000 | 15.30% – 21.25% |
| €800,000+ | 21.25% – 34% |
✅ Closer relatives (children, spouses, parents) get generous allowances and discounts.
👪 Relationship Groups & Allowances
| Group | Relation | Exempt Amount | Deductions |
|---|---|---|---|
| Group I | Children under 21 | €100,000–€156,000 | Up to 75% reduction |
| Group II | Adult children, parents, spouses | €100,000 | Up to 50–75% reduction |
| Group III | Siblings, in-laws, nieces/nephews | €7,993 | No reduction |
| Group IV | Unrelated persons | €0 | Full tax rate |
✅ Foreigners often benefit by planning transfers in Group I or II.
🧾 Documents You’ll Need
To file your tax return, you’ll need:
-
Death certificate (or notarial gift deed)
-
Title deed of the property
-
NIE numbers for all parties
-
Proof of kinship (e.g., birth or marriage certificate)
-
Bank certificate (if funds are involved)
-
Valuation report (tax base)
-
Modelo 650 (for inheritance) or Modelo 651 (for gift)
📌 We prepare and file all these forms for you.
📅 Deadlines to Pay Tax in Valencia
-
Inheritance tax: 6 months from the date of death (extendable to 12 months)
-
Gift tax: 30 days from the date of donation
Late payment triggers interest and penalties.
💡 Can You Reduce or Avoid the Tax?
Yes — with proper planning. Strategies include:
-
Structuring lifetime gifts instead of waiting for inheritance
-
Creating Spanish wills that reflect Valencia tax benefits
-
Using company structures for larger estates
-
Spacing gifts over time to stay within lower brackets
✅ Borderless Lawyers helps you plan smartly — before or after a transfer.
🌍 Non-Resident? You Still Owe Tax in Valencia
Many foreigners wrongly assume:
“I don’t live in Spain, so inheritance/gift tax doesn’t apply.”
But if the property is in Valencia, regional tax applies — even if:
-
You’re abroad
-
The donor was a non-resident
-
You inherit via a foreign will
📌 We handle non-resident filings and Spanish-NIE registration for you.
🧑⚖️ Why Use a Lawyer for Inheritance & Gift Tax?
We provide:
-
Clear advice on tax impact
-
Collection and legalization of foreign documents
-
NIE applications
-
Deed acceptance or gift drafting
-
Tax filing and representation before Valencia authorities
✅ Everything is explained in your native language — with fixed fees.
📞 Need Help With a Property Inheritance in Valencia?
Whether you’ve inherited, are gifting, or want to plan ahead — we’ll help you minimize risk, taxes, and delays.