Foreigners who inherit or receive property in Malaga may be subject to Spanish Inheritance and Gift Tax (Impuesto de Sucesiones y Donaciones – ISD).
Even if you’re not a resident, these taxes can apply — but with proper planning, you may pay little or nothing.
⚖️ Who Pays Inheritance or Gift Tax in Malaga?
Tax is due when you receive:
-
Property
-
Money
-
Other assets (e.g. bank accounts, cars)
📌 The recipient (not the estate) is liable for ISD.
🗺️ Are Foreigners Taxed?
Yes — non-residents are liable if:
-
The asset is located in Spain (e.g. Malaga real estate)
-
The recipient is a Spanish resident
-
The donor/deceased was a Spanish resident at death
📌 The applicable rules depend on Andalusia’s regional law (not just national law).
🏘️ What Are the Tax Rates in Andalusia (Malaga)?
As of current law:
🟢 Massive Reductions for Close Family
-
Spouses, children, parents (Groups I & II):
✅ 99% exemption on tax
✅ Applies up to €1 million inherited/gifted
✅ Very low actual tax due
🟡 Distant relatives or unrelated beneficiaries (Groups III & IV):
-
Fewer reductions
-
Taxable base = value minus allowances
-
Progressive rates from 7.65% to 34%
📌 Example: A nephew receiving €200,000 may owe €20,000+
📝 What Documents Do You Need?
To calculate and file ISD in Malaga, we prepare:
-
Spanish death certificate (or equivalent)
-
Title deed of the property
-
Property valuation
-
NIE of the heir/donee
-
Family relationship certificate
-
Proof of tax residence
-
Acceptance of inheritance or donation deed
💡 Gifting Property vs. Inheriting – Which Is Better?
| Option | Pros | Cons |
|---|---|---|
| Inheritance | Often benefits from larger exemptions | Can involve probate delays |
| Gift | Useful for planning during lifetime | May trigger capital gains tax |
📌 We analyze the tax impact of both before you decide.
🧑⚖️ How a Lawyer Helps You Reduce or Avoid Tax
Our legal service includes:
-
Identifying your family group & applicable reductions
-
Preparing or reviewing your Spanish will
-
Drafting gift deeds or inheritance acceptance
-
Filing tax forms (Modelo 650 or 651)
-
Handling non-resident declarations
-
Avoiding double taxation with your home country
🧠 Real Case: Dutch Widow Inherited €500,000 Malaga Property – Paid €0 Tax
With our help:
-
She filed under Group II (spouse)
-
Applied the 99% reduction
-
Final ISD = €0
-
All registered remotely via Power of Attorney
✅ We also updated the Land Registry and utility contracts on her behalf.
📆 Deadlines Matter: Don’t Wait
-
ISD must be filed within 6 months of death or gift
-
Extension possible, but must be requested within 5 months
-
Late filings incur penalties and interest
📞 Inheriting or Gifting in Malaga? Get Full Legal + Tax Guidance
We help foreigners:
-
Inherit Spanish property legally
-
Pay the right amount — and nothing more
-
Plan tax-efficient gifts to children, spouses, or others