Spanish inheritance tax (Impuesto sobre Sucesiones y Donaciones) applies to anyone inheriting assets in Spain — residents and non-residents alike. Rates, allowances and rules vary dramatically by region. We help expats and foreign heirs navigate Spanish inheritance tax efficiently.
Spanish inheritance tax — known as Impuesto sobre Sucesiones y Donaciones (ISD) — is a tax payable by the inheritor (not the estate) on assets received by gift or inheritance. Unlike inheritance tax in the UK, US or Ireland, the heir pays Spanish ISD personally, on the value they individually inherit.
ISD applies to anyone resident in Spain inheriting assets anywhere in the world; non-residents inheriting Spanish-situated assets (property, bank accounts, vehicles); and lifetime gifts received in Spain.
The complexity for foreign heirs comes from the interaction between Spanish national law and 17 autonomous communities, each with their own allowances and rates. The same inheritance can result in very different tax bills depending on which Spanish region the deceased was resident in.
If you live in Spain and inherit from anywhere in the world, you pay Spanish ISD on the worldwide inheritance. Tax credit may be available for foreign inheritance tax already paid (double-taxation relief).
Non-residents pay ISD only on Spanish-situated assets: property, Spanish bank balances, Spanish-registered vehicles. Foreign assets are taxed under the heir’s home country rules.
Following 2014 EU rulings and 2018 updates, EU and EEA heirs can choose to be taxed under the autonomous community rules of the deceased’s last Spanish residence — often dramatically lower than national rates. Non-EU heirs (including UK post-Brexit and US heirs) historically had this option restricted, though recent court rulings have extended it in many cases.
Spanish inheritance tax has both a state framework and autonomous community rules. The autonomous community of the deceased’s last legal residence controls allowances, reductions and effective tax rates. Differences between regions are dramatic:
These reliefs mainly benefit close family (Groups I and II); more distant relatives and unrelated heirs (Groups III and IV) pay materially more, and each community’s exact conditions differ and change over time. See our regional IHT comparison for a side-by-side view, or the dedicated pages above for each community’s current rules. For expats inheriting Spanish property, the autonomous community of the deceased’s last habitual residence normally governs — understanding these rules can be the difference between a near-0% effective tax and a 30%+ bill.
The Spanish national framework applies progressive rates from 7.65% to 34% of the taxable inheritance, then multipliers based on the heir’s relationship to the deceased and their existing wealth. Direct family (spouse, children, parents) pay the base rate. Distant relatives and unrelated heirs face significantly higher effective rates.
National (state) allowances are modest — roughly €16,000 per heir for close family (Groups I and II) — but autonomous-community reductions often dwarf them. For close family, Madrid, Andalucía, Valencia and Murcia now apply around a 99% bonificación, the Balearic Islands up to 100% and the Canary Islands 99.9%, so a standard family inheritance frequently pays little or nothing; Catalonia and several other communities apply more graduated relief. The regional comparison and each community’s page set out the current figures.
Additional reductions apply for inherited family businesses, main residences (95% reduction subject to retention conditions) and life insurance proceeds.
There is no single flat rate, which is why an online “Spanish inheritance tax calculator” can only ever give a rough figure. Spanish ISD is worked out in steps, and the result depends on who you are to the deceased, which region applies and your own existing wealth:
Because each step can swing the result, we model the exact figure for your circumstances rather than relying on a generic estimate. Send us the assets, the region and each heir’s relationship and we will calculate the real ISD — ask us to model your inheritance tax.
Spanish ISD has two layers: a national (state) framework that sets the baseline, and autonomous-community rules that usually reduce it — often dramatically — for close family. The state figures below are the starting point; the actual bill depends on the region. See our regional IHT comparison.
| Heir group | Who it covers | State reduction |
|---|---|---|
| Group I | Children/descendants under 21 | €15,956.87 + €3,990.72 per year under 21 (max €47,858.59) |
| Group II | Children/descendants 21+, spouse, parents/ascendants | €15,956.87 |
| Group III | Siblings, nieces/nephews, aunts/uncles, in-laws | €7,993.46 |
| Group IV | Cousins and unrelated heirs | No state reduction |
Further state reductions apply to a main home (95%, capped at €122,606.47 per heir, with a holding condition), life-insurance proceeds (100%, capped at €9,195.49) and qualifying family businesses (95%).
| Taxable base band | Marginal rate |
|---|---|
| First €7,993 | 7.65% |
| €31,956 – €39,943 | 11.05% |
| €79,881 – €119,758 | 16.15% |
| €159,635 – €239,389 | 21.25% |
| €239,389 – €398,778 | 25.50% |
| Over €797,555 | 34.00% |
Simplified — the full state scale has 16 progressive bands from 7.65% to 34%. The resulting tax (cuota) is then multiplied by a kinship coefficient.
| Heir group | Multiplier |
|---|---|
| Groups I & II (close family) | ×1.00 (up to ×1.20) |
| Group III | ×1.59 (up to ×1.91) |
| Group IV | ×2.00 (up to ×2.40) |
The higher multipliers apply where the heir already holds substantial pre-existing wealth. Finally the autonomous community’s bonificación (for example ~99% for Groups I–II in Madrid, Andalucía, Valencia and Murcia, up to 100% in the Balearics) is applied to the tax — which is why the effective bill ranges from near-zero to 30%+.
There is no single number — the result turns on your heir group, the region and your own wealth. These illustrative examples use the state scale; in a high-relief region the real bill is usually far lower.
For illustration, these examples use the state framework and assume the lowest applicable pre-existing-wealth multiplier unless stated otherwise; actual liability can change materially under autonomous-community rules and personal circumstances.
Every figure depends on current state and regional rules; we model the exact liability for your assets, region and heirs — ask us to model your inheritance tax.
If you inherit Spanish assets but live outside Spain, you pay ISD only on the Spanish-situated assets — property, Spanish bank balances and Spanish-registered vehicles; your home country taxes the rest. What changed in non-residents’ favour is which rules apply: following EU case law (reflected in Ley 26/2014) and later Spanish Supreme Court decisions extending it to non-EU heirs (including the UK and US), non-residents can generally apply the relevant autonomous community’s reductions and bonificaciones rather than only the higher state rules.
Which community applies? Where the deceased was non-resident, it is the community holding the greatest value of the Spanish assets (or, if there are no Spanish assets, the community where you as heir reside); where the deceased was resident in a Spanish community, that community’s rules apply.
What stays the same: the six-month Modelo 650 deadline, the calculation method and the heir-group structure. What differs: the scope (Spanish assets only) and which rules you apply. See our regional comparison and the dedicated community pages for the current figures.
You inherit a Spanish villa from a parent. We handle valuation, Spanish death certificate apostille, foreign will recognition, ISD calculation, Modelo 650 filing and Land Registry transfer.
The deceased had property in Spain, the UK and France. We coordinate with foreign solicitors, apply EU Succession Regulation where relevant, and minimise double taxation.
Multiple heirs disagree on valuation or distribution. We advise on Spanish forced-heirship rules, accepting vs renouncing inheritance, and Spanish court procedures.
Spanish inheritance can be accepted, renounced or accepted under inventory — the choice affects your liability for debts. See accepting vs renouncing.
If you own Spanish assets or live in Spain, planning ahead can reduce your heirs’ future ISD liability significantly:
There is no single rate. The state scale runs from 7.65% to 34%, but the effective bill depends on your relationship to the deceased, the region and your existing wealth. For close family in regions such as Madrid, Andalucía, Valencia or Murcia a 99% bonificación (up to 100% in the Balearic Islands) often reduces it to little or nothing; distant or unrelated heirs pay substantially more.
Yes. Non-residents pay ISD on Spanish-situated assets — property, Spanish bank accounts and Spanish-registered vehicles. Following EU rulings, and later court decisions extending this to non-EU heirs including the UK and US, non-residents can generally apply the relevant autonomous community’s reductions rather than only the higher state rules.
Spouses are Group II heirs and receive the largest reductions, so in many regions a surviving spouse pays little or no ISD. There is no automatic blanket exemption, however — the exact result depends on the autonomous community.
ISD is due within six months of the date of death, filed on Modelo 650. A one-off six-month extension can be requested within the first five months. Late filing triggers surcharges and interest.
Only if you are resident in Spain: Spanish residents pay ISD on worldwide inheritances, with double-tax relief for foreign inheritance tax already paid. Non-residents pay only on Spanish-situated assets.
There is no reliable instant calculator, because the result depends on your heir group, the autonomous community and your existing wealth, with reductions and bonificaciones applied at several stages. The best approach is to have the exact figure modelled for your circumstances — send us the assets, the region and each heir’s relationship and we will calculate it.
Generally yes. Following EU case law and later Spanish Supreme Court decisions extending it to non-EU heirs, non-residents can usually apply the relevant autonomous community’s reductions and bonificaciones rather than only the state rules. Which community applies depends on where the Spanish assets are, or where the deceased was resident.
A non-resident is taxed only on Spanish-situated assets, using the same heir-group reductions, state scale and kinship multiplier as a resident — and can generally apply the relevant region’s bonificación. For close family in a high-relief region the effective bill is often small; for distant or unrelated heirs it is materially higher.
Inheriting Spanish assets? Planning your Spanish estate? Our English-speaking team explains Spanish inheritance tax clearly and helps you minimise the bill legally.
Book a ConsultationContact UsThis page provides general information about Spanish inheritance tax and does not constitute legal or tax advice. Rules and rates vary by autonomous community and change over time. For advice on your inheritance, please book a consultation.