Spanish Inheritance Tax Rates by Region Complete Calculator

What Is Spanish Inheritance Tax?

Spanish inheritance tax (Impuesto sobre Sucesiones y Donaciones) is a tax paid by heirs when they inherit assets from someone who dies in Spain or who owns Spanish assets.

Key Facts About Spanish Inheritance Tax

Who pays: The heir (not the estate). Each heir pays individually on their share.

What's taxed:

• Real estate in Spain
• Bank accounts in Spanish banks
• Investments held in Spain
• Vehicles registered in Spain
• Business interests
• Personal property (jewelry, art, etc.)

Tax rates: Progressive from 7.65% to 34% at the national level, but regions offer massive reductions (or not).

Payment deadline: 6 months from date of death (extensions possible with approval)

Where to pay: Regional tax authority (Hacienda Autonómica) where the deceased lived or where property is located

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The Critical 6-Month Deadline

This is the most important date in Spanish inheritance.

You have 6 months from death to pay inheritance tax.

Late Payment Penalties

Miss this deadline and you'll pay dearly:

These penalties apply to the TAX AMOUNT, not the inheritance value.

Example:

• Inheritance tax owed: €10,000
• 8 months late: +€1,000 penalty (10%)
• 15 months late: +€1,500 penalty (15%)
• 20 months late: +€2,000 penalty (20%) + interest

Extensions: You can request one 6-month extension before the deadline expires. Requires justification and approval from tax authority. Interest charges may apply.

Pro tip: Mark your calendar immediately when death occurs. Set reminders for:

• Month 4: Begin gathering documents
• Month 5: Start tax calculation and filing
• Month 5.5: Submit payment (don't wait until last day)

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Spanish Inheritance Tax Rates by Region (2025)

Here's the complete breakdown for all 17 autonomous communities:

🟢 LOW-TAX REGIONS (99% Reduction for Direct Family)

These regions offer virtually no inheritance tax for children, spouses, and parents:

Madrid

Tax rate for direct family: 99% reduction = effective rate 0.1-0.5% €200,000 inheritance to child: ~€200 tax €500,000 inheritance to child: ~€500 tax €1,000,000 inheritance to child: ~€1,000 tax

Who qualifies:

• Children (including adopted)
• Spouses
• Parents
• Grandchildren (if parent deceased)

Non-residents: Same reduction applies after EU Court of Justice ruling

Why Madrid is so low: Political choice to attract wealth and residents

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Andalucía

Tax rate for direct family: 99% reduction = effective rate 0.1-0.5% €200,000 inheritance to child: ~€200 tax €500,000 inheritance to child: ~€500 tax

Who qualifies:

• Children under 21: 100% exempt up to €1 million
• Children over 21: 99% reduction
• Spouses: 99% reduction
• Parents: 99% reduction

Important: Property must be "family home" to qualify for full reduction on real estate. Investment properties have different rates.

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Canary Islands

Tax rate for direct family: 99.9% reduction €200,000 inheritance: ~€20-100 tax

Virtually eliminated inheritance tax for direct family in 2024.

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Murcia

Tax rate for direct family: 99% reduction €200,000 inheritance: ~€200 tax

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Extremadura

Tax rate for direct family: 99% reduction €200,000 inheritance: ~€200 tax

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Galicia

Tax rate for direct family: 99% reduction (with conditions) €200,000 inheritance: ~€200-400 tax

Condition: Assets must be maintained for 5 years (can't sell immediately).

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Cantabria

Tax rate for direct family: 95-99% reduction depending on amount €200,000 inheritance: ~€500-1,000 tax

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🟡 MEDIUM-TAX REGIONS (50-75% Reduction)

These regions offer partial reductions for family:

Valencia/Comunidad Valenciana

Tax rate for direct family: 75% reduction for inheritances under €600,000 €200,000 inheritance to child: ~€2,500-4,000 tax €500,000 inheritance to child: ~€10,000-15,000 tax

Additional exemptions:

• Family home: 95% reduction if value under €600,000
• Small businesses: Up to 99% reduction with conditions

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Castilla y León

Tax rate for direct family: 99% reduction if heir is under 21, reducing with age €200,000 inheritance to child (age 25): ~€3,000-5,000 tax €200,000 inheritance to child (age 40): ~€8,000-12,000 tax

Tax benefits decrease as heir gets older.

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La Rioja

Tax rate for direct family: 99% reduction for inheritances under €400,000 €200,000 inheritance: ~€200-500 tax €600,000 inheritance: ~€15,000-20,000 tax

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Castilla-La Mancha

Tax rate for direct family: 95% reduction with conditions €200,000 inheritance: ~€1,000-2,000 tax

Condition: Deceased must have lived in region 5+ years.

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🔴 HIGH-TAX REGIONS (Little to No Reduction)

These regions charge the full (or close to full) national rates:

Catalonia

Tax rate for direct family: 7.65-34% progressive (minimal reductions) €200,000 inheritance to child: ~€15,000-20,000 tax €500,000 inheritance to child: ~€50,000-70,000 tax

Small exemptions:

• €100,000 exempt for children under 21
• €50,000 exempt for children 21+
• Family home: Partial exemption if maintained 5 years

Why Catalonia is high: Political choice + fiscal independence from national government

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Asturias

Tax rate for direct family: 7.65-34% (minimal reductions) €200,000 inheritance to child: ~€12,000-18,000 tax

Some small deductions for family home.

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Aragón

Tax rate for direct family: 7.65-34% with some reductions €200,000 inheritance to child: ~€10,000-15,000 tax

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Navarra

Tax rate: Separate regional system (not aligned with Spain) €200,000 inheritance to child: ~€5,000-10,000 tax

Moderate rates, better than Catalonia but not as low as Madrid.

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Basque Country (País Vasco)

Tax rate: Each province (Vizcaya, Guipúzcoa, Álava) has own system €200,000 inheritance to child: ~€2,000-8,000 depending on province

Generally moderate to low rates.

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Regional Tax Comparison Table

Estimates based on typical scenarios. Actual tax depends on many factors.

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How Spanish Inheritance Tax Is Calculated

The calculation is complex, but here's the simplified process:

Step 1: Determine Taxable Base

Taxable base = (Inherited assets value) - (Debts) - (Funeral costs) - (Allowances)

Allowances by relationship:

• Children/adopted children under 21: €15,957 + €3,991 per year under 21 (max €47,859)
• Children 21+: €15,957
• Spouses: €15,957
• Parents/grandparents: €15,957
• Siblings: €7,993
• Nieces/nephews: €7,993
• Other relatives: €0
• Unrelated: €0

Example:

• Inheritance value: €200,000
• Child age 30
• Allowance: -€15,957
• Taxable base: €184,043

Step 2: Apply Progressive National Tax Rates

Example continued:

• Taxable base: €184,043
• Falls in 15.3-21.25% bracket
• National tax (before multiplier): ~€30,000

Step 3: Apply Multiplier Based on Wealth

The tax calculated above is multiplied based on heir's existing wealth:

Most people fall in the 1.0 category (no existing wealth).

Step 4: Apply Regional Reductions

This is where it gets dramatic.

Example in Madrid:

• Tax after Step 3: €30,000
• Madrid reduction: 99%
• Final tax: €300

Example in Catalonia:

• Tax after Step 3: €30,000
• Catalonia reduction: Small deduction only
• Final tax: ~€18,000

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Resident vs Non-Resident Inheritance Tax

EU Court of Justice Ruling (2014)

Prior to 2014, non-residents paid much higher inheritance tax than residents. The EU Court ruled this was discriminatory.

Current rules:

• EU/EEA residents: Same regional benefits as Spanish residents
• Non-EU residents: Still face higher taxes in some regions

Important for Brits post-Brexit:

• If you were resident in Spain before Brexit: Likely protected
• If you became resident after Brexit: Check specific regional rules
• Consult cross-border tax specialist

Which Region's Rules Apply?

If deceased was resident in Spain:

• The region where deceased lived determines tax rules
• Even if property is in different region

If deceased was non-resident but owned Spanish property:

• National rules apply (higher rates)
• No regional reductions
• Property location may matter for some calculations

Example:

• British retiree lived in Madrid, owns property in Catalonia
• Dies with €500,000 estate
• Madrid rules apply = €500 tax (99% reduction)

Vs:

• British non-resident owns €500,000 property in Catalonia
• Dies without Spanish residency
• National rules, no reductions = €60,000-80,000 tax

Huge difference. Residency matters.

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Special Cases and Exemptions

Family Home Exemption

Most regions offer additional reductions for inheriting the family home:

Conditions (vary by region):

• Must have been deceased's primary residence
• Heir must maintain it for 5-10 years (can't sell immediately)
• Heir must be spouse, child, or parent

Benefit:

• 95-100% reduction on family home value
• Separate from general inheritance tax reductions

Example in Valencia:

• €300,000 family home
• General 75% reduction + 95% family home reduction
• Effective tax: ~€500

Business and Farm Exemptions

Small business exemption:

• 95-99% reduction if:
  • Heir continues operating business 5-10 years
  • Business meets "small business" criteria
  • Heir works in the business

Agricultural property exemption:

• Similar to business exemption
• Must continue farming the land
• Varies by region

Life Insurance

Life insurance is NOT subject to inheritance tax if:

• Beneficiary is named in the policy
• Policy proceeds go directly to beneficiary (not through estate)

Exception: If life insurance paid to "the estate" it becomes part of inheritance and is taxed.

Planning tip: Always name specific beneficiaries in life insurance policies.

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How to Pay Spanish Inheritance Tax

Step 1: Calculate Tax Owed

Options:

1. Hire a tax advisor (asesor fiscal): €500-1,500
2. Use a gestoría: €300-800
3. DIY with online calculators: Free but risky

Recommended: Hire a professional. Mistakes are costly.

Step 2: File Tax Forms

Form 650 (Modelo 650): Main inheritance tax form

Required information:

• Deceased's details
• Heir's details
• Complete inventory of assets
• Valuations
• Debts and expenses
• Calculation of tax owed

Where to file: Regional tax office (Hacienda Autonómica) where deceased lived

Step 3: Pay the Tax

Payment methods:

• Bank transfer
• In person at authorized bank
• Online through tax authority portal (some regions)

Get receipt: Essential proof for notary and property registry.

Step 4: Register Payment with Notary

You can't complete inheritance without proof of tax payment.

• Notary requires payment receipt to execute inheritance deed
• Property registry requires it to transfer ownership
• Banks require it to transfer accounts

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Inheritance Tax Planning: How to Reduce What Heirs Pay

If you live in Spain and want to minimize what your heirs pay:

Strategy 1: Choose Your Region Wisely

If you're flexible on where to live:

• Madrid, Andalucía, Murcia = almost no tax for family
• Catalonia, Asturias = high tax

Example:

• Retiring with €1 million in assets
• Children inherit
• Madrid: €1,000 tax
• Catalonia: €140,000 tax

€139,000 saved by living in Madrid.

Strategy 2: Make a Spanish Will

Why it matters:

• Spanish will = smooth inheritance, low legal costs
• No Spanish will = Declaration of Heirs, delays, higher costs
• Foreign wills = translation, apostille, legal validation (expensive)

Cost of Spanish will: €50-150 when alive

Cost of intestate process: €1,000-5,000+ after death

Do it now.

Strategy 3: Joint Ownership with Spouse

Community property (gananciales):

• Married couples share 50/50
• When one dies, survivor already owns half
• Only half goes through inheritance (lower tax)

Example:

• €400,000 property
• Husband dies
• Community property: Wife already owns €200,000
• Only €200,000 subject to inheritance (to wife or children)

Strategy 4: Use Life Insurance

Life insurance proceeds are NOT inheritance taxed if:

• Beneficiary is named
• Proceeds bypass estate

Planning:

• Take out life insurance policy
• Name children as beneficiaries
• Use proceeds to pay any inheritance tax on other assets

Strategy 5: Gifts During Lifetime

Gift tax in Spain is separate from inheritance tax.

Advantages:

• Some regions have lower gift tax than inheritance tax
• Can spread gifts over multiple years
• Reduces estate size

Disadvantages:

• Gift tax still applies
• Some regions have same rates as inheritance tax
• Lose control of assets

Consult tax advisor before gifting.

Strategy 6: Offshore Trusts (Advanced)

For high-net-worth individuals:

• Some assets can be held in trusts outside Spain
• Complex tax implications
• Requires specialist legal and tax advice
• Not suitable for most people

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Common Inheritance Tax Mistakes

Mistake #1: Missing the 6-Month Deadline

Problem: You weren't aware of the deadline or procrastinated.

Cost: 5-20% penalty on tax owed (€5,000-20,000+ on large estates)

Solution: Set calendar reminders immediately when death occurs.

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Mistake #2: Assuming Your Region Has Low Tax

Problem: You live in Barcelona and assume all Spain has the same rates.

Cost: Paying €20,000 when you expected €1,000.

Solution: Research your specific region's rates early.

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Mistake #3: Not Valuing Property Correctly

Problem: You undervalue property to reduce tax. Tax authority audits and reassesses.

Cost: Back taxes + penalties + interest.

Solution: Use official valuations (tasación) by licensed appraisers.

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Mistake #4: Paying Based on Cadastral Value

Problem: You use the cadastral value (valor catastral) which is often 50% below market.

Cost: Tax authority rejects and demands market value calculation.

Solution: Pay based on market value from day one. It's what they'll demand anyway.

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Mistake #5: Not Checking for Debts

Problem: You accept inheritance without investigating debts. Debts exceed assets.

Cost: You're liable for debts beyond asset value.

Solution: Always investigate debts before accepting. You can reject inheritance or accept "with benefit of inventory" (capped liability).

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Mistake #6: DIY Complex Tax Calculations

Problem: You try to calculate tax yourself, make errors, underpay.

Cost: Penalties + interest on underpayment.

Solution: Hire tax advisor for anything beyond very simple estates. €800 advisor fee saves €5,000+ in mistakes.

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Get Expert Help with Inheritance Tax

Professional Tax Services

Don't risk mistakes on your inheritance tax:

• Tax advisors (Asesores Fiscales) - Calculate and file your inheritance tax (€500-1,500)
• Inheritance lawyers - Complex estates, disputes, cross-border issues
• Gestorías - Administrative support for simpler cases (€300-800)

Complete Inheritance Process Checklist

Inheritance tax is just one piece of the Spanish inheritance puzzle:

→ Complete death & inheritance checklist (47 tasks)

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Related Resources

Inheritance Guides

• What to Do When Someone Dies in Spain →
• Spanish Inheritance Process Explained →
• How to Register a Death in Spain →

Tax Planning

• Making a Spanish Will: Complete Guide →
• Resident vs Non-Resident Tax Treatment →

Regional Guides

• Madrid Inheritance Tax: Complete Guide →
• Catalonia Inheritance Tax: What to Know →
• Andalucía Inheritance Tax Exemptions →

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Frequently Asked Questions

Q: Can I choose which region's tax rates apply? A: No. It's determined by where the deceased lived (if resident) or where property is located (if non-resident).

Q: What if I can't pay the tax within 6 months? A: Request an extension before the deadline expires. You may get 6 more months, though interest/penalties may apply.

Q: Do I pay tax on property I don't inherit (sold to pay debts)? A: No. Tax is only on what you actually receive.

Q: Can I pay inheritance tax in installments? A: Some regions allow payment plans for large amounts. Request before deadline.

Q: What if the inheritance tax is more than the inheritance value? A: You can reject the inheritance. You're not obligated to accept if debts/taxes exceed assets.

Q: Does Spain have a "death tax" on the estate before distribution? A: No. Spain only has inheritance tax paid by heirs, not estate tax.

Q: If I live in Madrid but inherit property in Catalonia, which rates apply? A: If deceased lived in Madrid, Madrid rates apply to the entire inheritance, including the Catalonia property.

Q: Are non-EU citizens taxed differently? A: Generally yes, they may face higher rates and don't benefit from regional reductions in some areas. Consult specialist.

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This guide was last updated in January 2025. Spanish inheritance tax laws change periodically, especially regional rates. Always verify current rates with a qualified tax advisor.

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Lifetti helps expats navigate Spanish inheritance with step-by-step guides, cost calculators, and connections to verified tax professionals.