Impuesto de Sucesiones Explained
Complete guide to Spanish inheritance tax rates, regional differences, exemptions, and how to calculate and pay. Updated for 2026.
Quick answer
Spanish inheritance tax (Impuesto de Sucesiones) runs on a national scale of 7.65% to 34%, applied after allowances and multiplied by a coefficient based on the heir’s wealth and relationship. But the region where the deceased lived decides the real bill: Madrid, Andalucía, Murcia and Extremadura reduce tax by about 99% for children, spouses and parents, while Catalonia and Asturias give far less relief. Close relatives get a €15,957 base allowance, and the tax must be filed and paid within 6 months of death (a 6-month extension is possible).
National Rates
7.65% - 34% (before regional variations)
Regional Variations
Madrid: up to 99% reduction | Andalusia: up to 36.5%
Who Pays
Beneficiaries (not the estate) pay the tax
Filing Deadline
6 months from date of death
Spanish inheritance tax (Impuesto de Sucesiones y Donaciones) is paid by beneficiaries (heirs), not by the estate. You must pay Spanish inheritance tax if:
If you're a Spanish tax resident (lived in Spain >183 days/year), you pay Spanish inheritance tax on worldwide inherited assets, regardless of where the deceased lived.
If you inherit Spanish assets (property, bank accounts, shares), you pay Spanish tax on those assets even if you live abroad and the deceased lived abroad.
Spain's 17 autonomous communities (regions) set their own inheritance tax rates and allowances. This creates dramatic differences:
Most Tax-Friendly
Direct family (Group I & II)
99% Reduction
Spouses, children, parents pay almost nothing
Allowance
€16,000 - €47,858
Moderate Rates
Direct family rates
7% - 32%
Plus 99% reduction up to €100,000
Allowance
€100,000
Higher Rates
Direct family rates
7.65% - 36.5%
Reductions available for primary residence
Allowance
€175,000 - €1M
Depends on wealth & disability
Spanish inheritance tax is progressive (higher rates for larger inheritances) and depends on three factors:
Calculate the market value of all inherited assets (property, cash, investments, belongings). Deduct funeral costs and debts.
National rates (before regional modifications):
Deduct regional allowances and apply regional reductions (e.g., Madrid's 99% reduction for direct family). This is where location makes the biggest difference.
Primary Residence
95% reduction up to €122,606 for spouses and children living in the home
Family Business
95% reduction if heir continues operating business for 10 years
Disability Allowances
€47,858 - €150,253 extra for disabled beneficiaries
Life Insurance
€9,195 tax-free per beneficiary (varies by region)
Foreign Bank Accounts
Fully taxable unless in double taxation treaty country
Rental Properties
Not eligible for primary residence reduction
Valuables & Vehicles
Cars, jewelry, art all subject to tax at market value
Foreign Inheritances
Tax residents pay on worldwide inheritances
Spain has double taxation treaties with several countries to prevent paying inheritance tax twice on the same assets.
Spain-UK treaty prevents double taxation. If you pay UK inheritance tax on an asset, you can offset that against Spanish tax owed. Credit is given for tax paid in the UK, reducing your Spanish liability.
No inheritance tax treaty with Spain. US citizens may face both US estate tax (>$13.61M in 2025) and Spanish inheritance tax. However, most estates fall below US threshold. Consult a cross-border tax specialist.
Spain has inheritance/gift tax treaties with France (1963), Greece (1958), and Sweden (1963). No specific treaty with Germany or Italy, but EU law prevents discrimination against EU citizens.
You have 6 months from the date of death to file Modelo 650 (Inheritance Tax Return) and pay the tax. You can request a 6-month extension before the deadline, but interest accrues.
File with the regional tax office (Agencia Tributaria) where:
File online via the regional tax authority website or in person at local tax office. Many expats hire a gestor or tax advisor to handle filing.
Pay via bank transfer or direct debit. You'll receive a carta de pago (payment receipt) which is required to:
Yes. Spanish inheritance tax applies to Spanish assets regardless of where you live. Even if you're a UK resident, you must pay Spanish tax on the inherited Spanish property. The UK-Spain treaty prevents double taxation if the UK also taxes the inheritance.
Yes, in some cases. If the tax exceeds €30,000, you may be able to arrange a payment plan with the tax authority. You'll need to provide guarantees (like a bank guarantee) and will pay interest on deferred amounts.
Options include: 1) Request a payment plan, 2) Sell inherited assets to pay the tax, 3) Reject the inheritance (must be done formally before a notary), or 4) Take out a loan. If you formally reject the inheritance within the deadline, you avoid the tax but forfeit all inherited assets.
Yes. Estate tax (like in the US) is paid by the estate before distribution. Spanish inheritance tax is paid by each beneficiary individually based on what they inherit. Each heir files their own return and pays their own tax.
Yes. Life insurance proceeds are subject to Spanish inheritance tax, though there's a €9,195 exemption per beneficiary (varies by region). The payout is added to other inherited assets when calculating total inheritance value.
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