Inheritance Tax Rates in Spain

EU citizens, ordinarily resident in another EU country, may apply any deductions available for Inheritance tax rates in Spain.

Inheritance tax rates in Spain

National vs Regional Tax Rules

 

Formerly, only those who have been ordinarily resident in a particular region of Spain over the balance of a period of five years prior to their death will have the more generous regional inheritance tax exemptions applied to their estate.

In addition it will require the beneficiary to be resident in some part of Spain.

If not, the national rules applied. What this meant of course was that, more often than not, the rules for most non-Spanish beneficiaries were calculated using the less generous ‘national level’ deductions.

However, following a judgment by the European Court, the Spanish government has passed into law Ley 26/2014 about inheritance tax rates in Spain, which came into force on January 1st, 2015.

The new legislation provides that European Union citizens, ordinarily resident in another European country, may apply any deductions available to residents of the region in Spain in which their assets are located. Please view the regional tax deductions.

For non-EU citizens, the less generous ‘national level’ tax exemptions below apply.

Tax Exemptions

The exemptions available at a national level may be summarised as follows:

 

Personal Exemptions

Inheritance tax rates in Spain - Personal exemptions

Inheritance tax rates in Spain – Personal exemptions


Guide to Groups

In Spain a beneficiary is assigned a category or Group depending on their relationship with the deceased, as per the following table:

Group I            Children, including adopted children, under the age of 21

Group II           All other children, spouses and parents

Group III         Close relatives such as brothers and sisters, grandparents, aunts/uncles

Group IV         More distant relatives

 

Disabilities

In addition to the above exemptions, should any beneficiary be disabled, further exemptions ranging between €47,858.59 and €150,253.03 depending on the level of disability.

 

Life Insurance Policies

If the deceased took out a life insurance policy in favour of a beneficiary there is an exemption up to the value of €9,159.49 where the beneficiary is a spouse, child or parent.

 

Inheritance of the Family Home

An exemption also exists for tax payable on the permanent or habitual residence. The definition of habitual residence is the same as that used in Spanish Income Tax legislation and presupposes time having been spent living in the property.

The classification of a property as the family home will be assisted through the presentation of supporting evidence such as tax returns with the property listed as the habitual address of the taxpayer.

This exemption applies equally to a spouse, children and parents of the deceased at a rate of 95% of the value of their inherited portion of the property up to a maximum value of €122,606.47 each. An important proviso exists in that the property may not be sold for a period of 10 years after the inheritance.

Other relatives further removed, may also benefit from this exemption but must have been living with the deceased in the property for a period of at least two years prior to the date of death.

Tax Rates

Inheritance tax rates in Spain - Taxrates

Inheritance tax rates in Spain – Taxrates

To demonstrate how the tax rates are applied, consider the following example:As stated earlier, the relevant factors when calculating the tax liability that a beneficiary of an estate in Spain will face include tax exemptions, the tax rate and their personal wealth.

Example

Where three children each inherit, after exemptions and charges, an inheritance valued at €45,000 from a parent, to determine the amount of tax payable by each we would calculate as follows:

Up to €39,943.26 the tax payable is €3,734.59

The portion above €39,943.26 (€45,000 – €39,943.26 = €5,056.74) is taxable at 11.9% = €601.75

So, total tax payable by each child is € 3734.59 + € 601.75 = €4,336.34

 

Personal Wealth

Inheritance tax rates in Spain - Personal wealth

Inheritance tax rates in Spain – Personal wealth

Example

A brother of the deceased inherits an estate comprised of cash of approximately €68,000 generating a net tax liability of €6,000 (after exemptions, deductible charges gave been deducted and tax rate applied). The beneficiary has a pre-existing wealth of €450,000.

Then the total tax payable increases to 6,000 x 1.6676 = €10,002 (As a brother of the deceased the correct category is Group III).

33 Lawyers Offering Inheritance Services in Spain

Testimonials for our Inheritance service
  • Gail Maher
    Gail Maher, Fuengirola

    Hi, I would like to thank Alvaro very much for all his expertise. We had a very long journey from dealing with the inheritance will for my mother's apartment in Torrenueva to dealing with sale of the apartment.


    He was brilliant in every aspect. Nothing too much trouble. Very professional and would definitely recommend him to anyone in the future.


    So a big thank you and wishing you to continue delivering an excellent service. Regards Gail Maher


    Oct 21, 2020
  • Johanna Count
    Johanna Count, Benidorm

    Consuelo explained and took care of everything. She is easy to get in touch with and a pleasure to deal with.


    Having to deal with Spanish probate laws and procedures was overwhelming but Consuelo made it so straight forward.


    Oct 07, 2020
  • Michael Armstrong
    Michael Armstrong, La Manga del Mar Menor

    Consuelo has the highest praise and gratitude from this family by somehow reclaiming inheritance tax from Madrid. Previous solicitors left a mess,partial/incorrect and missing documents were received very late.


    Despite obstacles such as denial from tax office and virus Consuelo promptly, courteously and professionally simply got on with the job and succeeded against all odds. We cannot thank her enough!


    Jul 27, 2020
  • Abbie Orsini
    Abbie Orsini, England

    Rosa responded efficiently I was extremely happy and satisfied with this !


    She explained everything I needed to know and more to help me understand. At the beginning I found the process daunting Rosa took this feeling way and helped me feel at ease.


    Paying was straight forward and I was well informed with fees etc. Rosa took a very professional approach and I felt comfortable approaching her about any issues I had.


    She is a credit to advocate abroad !!!!! Thank you for your help !!!!!!!!!❤️


    Jun 18, 2020
  • Jonathan Mackay
    Jonathan Mackay, Jaca

    Francisco was extremely professional and answered our many questions promptly and clearly, both by phone and email. We feel very lucky to have had Francisco handle our Spanish Fiscal declaration.


    The service was perfect, and we are very happy with the whole process.


    Mar 12, 2020
  • Gail Maher
    Gail Maher, Torrenueva

    Alvaro is brilliant.


    He comes across very professional and friendly,nothing too much trouble.


    As I was unable to go to Spain initially all communication was via phone and was put at ease straight away as he understood exactly what was required to deal with my case, and all went exceptionally well. I was able to meet Alvaro in August to pass over documents required and made me very welcome.


    I have been so pleased with everything I have now engaged him on a further instruction on our property in Torrenueva..


    Dec 11, 2019
  • Andrew Hales
    Andrew Hales, Fuengirola

    We dealt with Angela, and had a superb service - she was efficient, clear, timely and exceptionally helpful. We would recommend this respectable Solicitor who has excellent English.


    Trustworthiness is so important, and step by step help was very much appreciated. Thank you Angela of myAdvocate Fuengirola.


    Oct 23, 2019
  • Isabel Albert
    Isabel Albert, Valencia

    Inmaculada has always responded to all my queries and explained and provided excellent solutions. She is very approachable, diligent and professional.


    Sep 17, 2019
  • Irene Hyde Christie
    Irene Hyde Christie, Coin

    I am very pleased with the service provided by Francisco. He has been most helpful and responded very quickly to all my emails.


    Jul 26, 2019
  • Franco Trio
    Franco Trio, United Kingdom

    Rosa always responded promptly to any email I sent.


    She kept me informed and provided alternatives and 3rd party services (translation).


    Thank you Rosa for your assistance, perseverance and honesty in helping my mum and I. We will definitely recommend you.


    Apr 10, 2019
  • Marcus Bond
    Marcus Bond, Fuengirola

    Proactive, great communication, thoroughly recommend.


    Feb 14, 2019
  • Michael Bates
    Michael Bates, UK

    Francisco was very easy to deal with. Very professional. Would not hesitate to recommend him to friends.


    Jul 27, 2018
  • Sarah Finnagan
    Sarah Finnagan, England

    Francisco was fantastic and helped me through every single step and helping understanding everything.


    Price was very reasonable i have no complaints at all.


    Very easy to get hold of and very quick at responding would definitely go back to him - thankyou so much Francisco for everything.


    Sep 21, 2017
  • Michael Tenerife
    Michael Tenerife, UK

    Rosa excelled in all of the criteria listed for evaluation.


    Extremely responsive, understanding, professional, and offered great value for money. Rosa explained the situation clearly and provided the clearest solution every time.


    I just can't imagine how Rosa could have done more. Truly excellent service.


    Aug 07, 2017
  • LM
    LM, Ibiza

    Cristina was amazing and very helpful and i would highly recommend her services again.


    I am very satisfied and I definitely would use the same lawyer again in the future.


    Mar 10, 2017
  • Diana Rawstron
    Diana Rawstron, London

    Domingo provided an excellent service on this matter and I was very pleased that I had found him through your website.


    I definitely use the same lawyer again in the future.


    Nov 03, 2016
  • Mrs. Irene C Price
    Mrs. Irene C Price, Acton Trussell

    It was a pleasure to deal with Francisco. He spoke excellent English. He was professional and courteous at all times, and responded to any queries I had by return, taking time to explain complicated legal procedure in a manner I could understand.


    For the work Francisco did, his charges were good value for money. I would recommend his services without hesitation.


    Oct 12, 2016