Inheritance Tax Rates in SpainTax Exemptions

Inheritance tax rates in Spain

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.

19 Lawyers Offering Inheritance Services in Spain

Testimonials for our Inheritance service
  • 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
  • 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
  • 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
  • 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
  • Glynis Stanley
    Glynis Stanley, Dublin

    I appreciated the in-depth information, time and willingness to explore all angles to help what was a difficult situation.


    As I had previously had very unsatisfactory dealings legally in Spain I left my appointment feeling that I had found a Practice that was honourable and trustworthy....very happy to recommend.


    Feb 12, 2014