📍 Why Regional Rules Matter for Inheritance Tax in Spain
Spain’s inheritance tax isn’t uniform — each of its 17 autonomous communities applies its own tax rates, deductions, and exemptions.
That means two heirs inheriting similar properties in different regions may owe completely different amounts — from zero tax in some areas to tens of thousands of euros in others.
This guide focuses on the three most common regions for foreign heirs:
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Andalucía
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Valencia
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Catalonia
⚖️ Andalucía – Among the Most Tax-Friendly Regions
🎯 Who Benefits?
✅ Residents and non-residents alike, especially children, spouses, and parents
🧾 Key Tax Reductions:
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100% exemption up to €1,000,000 for Group I & II heirs (children, spouses, parents)
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Assets above €1M taxed at reduced rates
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Applies even to non-residents if the deceased lived or owned property in Andalucía
🧩 Example:
If you inherit a property in Marbella worth €800,000 from a parent, and both you and the deceased are non-resident — you may owe €0 in inheritance tax under current regional rules.
⚖️ Valencia – Moderate Reductions with Conditions
🎯 Who Benefits?
✅ Children and spouses, but reductions depend on residency and relationship
🧾 Key Tax Reductions:
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€100,000 personal exemption for children/spouses
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75% reduction on tax due for close relatives
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Only applies if the heir or deceased is a tax resident in the Valencia region
📌 Notes:
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Non-residents may not fully benefit unless they qualify under EU rules
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Gift tax rules are similar but slightly less favorable
⚖️ Catalonia – Lower Rates, But Fewer Exemptions
🎯 Who Benefits?
✅ Close family members, with lower base tax rates but fewer automatic exemptions
🧾 Key Tax Reductions:
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€100,000 exemption for children
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Tax rates range from 5% to 32%
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Bonus reductions based on heir’s age, disability, or family situation
📌 Notes:
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Catalonia applies its own valuation tables and surcharges
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Proof of residency often required for maximum deductions
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Common region for expats and urban heirs (Barcelona, Sitges, Girona)
🔄 What If You’re a Non-Resident?
Due to EU law, EU/EEA citizens are entitled to the same regional tax benefits as residents — but:
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You must file the Modelo 650 correctly
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You may need to demonstrate the deceased or the property is tied to that region
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Non-EU citizens may be restricted to national rules (higher tax, fewer reductions)
💡 Regional Planning Strategy for Expats
| Strategy | Benefit |
|---|---|
| Draft a Spanish will with local jurisdiction | Lock in regional benefits |
| Keep property in a favorable region | Reduce or eliminate future tax burden |
| Use gift strategies during lifetime | Shift assets tax-efficiently |
| Consult a local lawyer | Ensure eligibility and deadlines met |
⚠️ Mistakes to Avoid
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❌ Assuming national rules apply everywhere
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❌ Relying on your home country lawyer’s advice without local input
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❌ Missing regional filing deadlines or exemptions
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❌ Overlooking Plusvalía Municipal (separate local tax)
⚖️ Legal Help with Regional Inheritance Tax
Our firm helps you:
✅ Identify which region’s rules apply
✅ Maximize deductions and exemptions
✅ File tax correctly, even from abroad
✅ Transfer property efficiently to heirs
✅ Navigate regional notary and registry requirements
📞 Inheriting in Andalucía, Valencia, or Catalonia?
Each region has unique opportunities and risks. Our English-speaking lawyers help you make the most of your inheritance — and avoid unnecessary tax.
👉 Book a consultation with an inheritance lawyer who understands Spain’s regional tax laws.