If you’re a foreigner who owns property in Valencia — or plan to inherit or gift one — you’ll face regional inheritance and gift taxes (ISD).
Unlike some countries, Spain taxes the recipient, and Valencia has its own tax rates and deductions.
If not handled properly, your heirs could face:
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Unexpected tax bills
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Legal complications
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Delays in property transfer
📌 Borderless Lawyers helps foreigners manage inheritance and gift planning under Valencia’s local rules.
🪪 Who Pays Inheritance or Gift Tax?
✅ The beneficiary (the person receiving the property) pays the tax, not the deceased or donor.
Applicable if:
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The property is located in Valencia, OR
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The recipient is a Valencia resident
📊 Valencia Inheritance & Gift Tax Rates
Spain uses a progressive rate based on:
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The value of the inherited or gifted assets
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The relationship between donor/deceased and recipient
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Any prior gifts received
| Value Bracket (€) | Tax Rate (before reductions) |
|---|---|
| Up to €50,000 | 7.65% |
| €50,000 – €150,000 | 11.90% |
| €150,000 – €800,000 | 15.30% |
| Over €800,000 | 34% |
👨👩👧👦 Relationship-Based Multipliers
Spain divides heirs into groups:
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Group I: Children under 21
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Group II: Children over 21, parents, spouses
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Group III: Siblings, nieces/nephews, in-laws
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Group IV: Non-relatives, unmarried partners
Each group has different allowances and multipliers.
✅ Deductions & Allowances in Valencia
Valencia offers generous reductions for Groups I and II (close relatives):
Inheritance Tax (Valencia Reductions)
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€100,000 exemption for children and spouses
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Additional €8,000–€156,000 for disability
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99% reduction for habitual residence (if rules met)
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Lower rates for Group II heirs (spouses, children, parents)
Gift Tax (Valencia Reductions)
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€100,000 allowance for gifts to children or parents
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Must be formalized before a notary
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99% exemption on habitual residence if recipient keeps it for 5+ years
📌 Foreigners who inherit as non-residents must file in Valencia to access these benefits — we handle this.
⏰ Deadlines to File and Pay
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Inheritance Tax: 6 months from the date of death
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Gift Tax: 30 working days from date of notarized gift
📌 Extensions available if applied in time.
✍️ Do I Need a Spanish Will?
✅ Yes — we strongly recommend drafting a Spanish-compatible will if you:
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Own real estate in Valencia
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Want your heirs to inherit easily
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Prefer foreign law to apply (e.g., UK, Germany, Canada)
💡 Under EU Regulation 650/2012, you can choose your national law in your Spanish will — but it must be stated clearly.
🧑⚖️ How Borderless Lawyers Can Help
✔️ Draft Spanish-compatible wills
✔️ Structure gifts to minimize tax
✔️ File inheritance and gift tax declarations
✔️ Apply for reductions
✔️ Coordinate notary appointments and title transfers
We represent heirs remotely, without requiring them to travel to Spain.
📞 Inheriting or Gifting a Property in Valencia?
Let our legal team handle the full process and avoid costly mistakes. We work with foreign families around the world.