Yes. If you own property in Malaga and pass it to heirs or give it as a gift, Spanish tax law applies — even if:
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You or the heirs live outside Spain
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The property was inherited abroad
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The transfer was by donation
📌 The key factor is that the property is located in Malaga, so regional tax rules (Andalusia) apply.
⚖️ Inheritance Tax (Impuesto sobre Sucesiones)
Applies when a property passes to a person due to:
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Death (will or intestacy)
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Legal succession
💡 Good News:
Andalusia offers generous reductions for close relatives (e.g. children, spouses).
| Relationship | Exemption / Reduction |
|---|---|
| Spouse / Child | 99% reduction up to €1 million |
| Other relatives | Partial reductions or full tax |
| Unrelated heirs | Higher tax, fewer reductions |
📝 Even if no tax is due, the process must be filed within 6 months of death (extendable once).
🎁 Gift Tax (Impuesto sobre Donaciones)
Applies when a property is gifted during the owner’s lifetime, often from:
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Parent to child
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Grandparent to grandchild
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Spouse to spouse
❗Key Differences from Inheritance:
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Also taxed based on relationship
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More paperwork involved (needs notarial deed)
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Must be paid within 30 days of donation
✅ Your lawyer can advise if gifting is better than passing property by inheritance.
📉 Tax Rates and Exemptions in Andalusia
Thanks to regional reforms, Andalusia has some of the most favorable inheritance/gift tax rules in Spain for close family.
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Base rate: 7%–36%, but reduced in most cases
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99%+ reductions: For spouses, children, grandchildren (up to €1 million)
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Property value adjustments: Heirs may be able to use minimum fiscal values to reduce the tax base
📌 Foreign heirs can still access Andalusian reductions if the property is located in Malaga.
🌍 What If the Heirs Live Abroad?
Non-resident heirs:
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Can inherit property in Spain
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Must get an NIE
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Must file tax in Spain, even if they live elsewhere
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May also owe tax in their home country (e.g. USA, UK, Germany)
✅ We assist with double taxation treaties and cross-border coordination.
🧾 Key Legal Requirements
To complete the inheritance/gift process in Malaga:
| Required Document | Purpose |
|---|---|
| Death Certificate or Gift Deed | Triggers the process |
| NIE of heirs or donees | Mandatory for Spanish tax filing |
| Will or Deed of Gift | Must be notarized and legal |
| Certificate of Last Will (Spain) | Confirms Spanish wills registry |
| Inheritance or Gift Tax Form | Modelo 650 / 651 (Junta de Andalucía) |
🕒 Deadlines to Keep in Mind
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Inheritance tax: File within 6 months of death
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Can request a 6-month extension
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Gift tax: File within 30 days of notary deed
Late filings may result in penalties and interest.
🧑⚖️ How Borderless Lawyers Helps
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Full inheritance & gift tax filing in Malaga
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Coordination with foreign notaries and consulates
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NIE applications for heirs
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Spanish will drafting for future planning
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Fixed-fee service in English, French, Dutch, Arabic, and more
📞 Own Property in Malaga? Plan Your Legacy with Legal Certainty
Whether you’re gifting your property or preparing your estate, smart legal planning avoids future tax burdens and paperwork stress for your loved ones.