How inheritance tax works in Spain
Spain's Inheritance and Gift Tax applies to individuals receiving assets by inheritance, legacy, life insurance or donation. A legal entity receiving value is generally dealt with under corporate tax rather than this individual acquisition tax.
The state fallback rate scale runs from 7.65% on the first EUR 7,993.46 of taxable base to 34% above EUR 797,555.08. Personal and family reductions, business and agricultural reliefs, life-insurance rules and multipliers are applied after the taxable acquisition is determined.
The state baseline groups children and adoptees under 21 in Group I, spouses and adult direct-line relatives in Group II, more distant relatives in Group III and unrelated beneficiaries in Group IV. The state allowance for Group I starts at EUR 15,956.87 plus EUR 3,990.72 for each year under 21, capped at EUR 47,858.59; Group II has a EUR 15,956.87 baseline and Group III EUR 7,993.46.
The tax is largely ceded to Spain's autonomous communities. The applicable community can change the tariff, allowances, reductions and bonuses, and can turn a close-family transfer into a very low-tax event or leave a substantial bill. The Basque Country and Navarre have separate foral systems.
The state fallback applies a multiplier based on the beneficiary's pre-existing wealth and relationship. For the highest pre-existing-wealth band, the multiplier reaches 1.2 for Groups I and II, 1.9059 for Group III and 2.4 for Group IV, so the state fallback can reach an effective 81.6% before any regional relief.
Inheritance returns are generally due within six months of death, with a possible extension if requested within the statutory period. Gift returns are generally due within 30 business days. Non-resident estates and gifts may have an option to use the autonomous-community rules in the cases allowed by law.
Inheritance tax brackets in Spain
| Bracket | Rate | Notes |
|---|---|---|
| Up to EUR 7,993.46 | 7.65% | State fallback rate before regional relief |
| EUR 7,993.47 to EUR 15,980.91 | 8.50% | |
| EUR 15,980.92 to EUR 23,968.36 | 9.35% | |
| EUR 23,968.37 to EUR 31,955.81 | 10.20% | |
| EUR 31,955.82 to EUR 39,943.26 | 11.05% | |
| EUR 39,943.27 to EUR 47,930.72 | 11.90% | |
| EUR 47,930.73 to EUR 55,918.17 | 12.75% | |
| EUR 55,918.18 to EUR 63,905.62 | 13.60% | |
| EUR 63,905.63 to EUR 71,893.07 | 14.45% | |
| EUR 71,893.08 to EUR 79,880.52 | 15.30% | |
| EUR 79,880.53 to EUR 119,757.67 | 16.15% | |
| EUR 119,757.68 to EUR 159,634.83 | 18.70% | |
| EUR 159,634.84 to EUR 239,389.13 | 21.25% | |
| EUR 239,389.14 to EUR 398,777.54 | 25.50% | |
| EUR 398,777.55 to EUR 797,555.08 | 29.75% | |
| Above EUR 797,555.08 | 34.00% |
Tax rates at a glance
- Inheritance tax
- 7.65% - 34%Progressive
- Gift tax
- 7.65% - 34%
- Group I state allowance
- EUR 15,956.87+
- Group II state allowance
- EUR 15,956.87
- Group III state allowance
- EUR 7,993.46
- Group IV state allowance
- None
- State fallback effective ceiling
- Up to 81.6%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
FamiliesExpatsInvestorsProperty ownersFamily offices
Watch out for
- There is no single Spain-wide inheritance-tax answer for an ordinary resident. The deceased's or beneficiary's residence, the autonomous community, the relationship, the asset type and the beneficiary's pre-existing wealth can all change the bill.
- A gift can create more than one tax. The recipient may owe Inheritance and Gift Tax, while the donor can face IRPF on an unrealised capital gain and the transfer can trigger municipal land-value tax when urban property is involved.
- Close-family bonuses are often generous in some autonomous communities but much less generous in others. A move shortly before death or a gift can raise residence, anti-avoidance and civil-law questions as well as tax questions.
- Spanish real estate, a Spanish-resident deceased person, a Spanish-resident heir and foreign assets can create different competence and filing options for non-residents. EU and treaty relief does not make the filing automatic.
- Business or family-company relief can be valuable, but the activity, ownership, management, remuneration and holding conditions must be satisfied. A passive portfolio is not a qualifying operating business by default.
Frequently asked questions
Does Spain have inheritance tax?
Yes. Spain taxes inheritances, legacies, certain life-insurance receipts and gifts. The state fallback scale is 7.65% to 34%, but autonomous communities can change rates, allowances, reductions and bonuses substantially.
Do spouses and children pay inheritance tax in Spain?
They can, but the result varies by autonomous community. Under the state fallback, spouses and direct-line heirs receive a EUR 15,956.87 baseline allowance, with additional rules for children under 21; regional reductions and bonuses may be much more generous.
What is the inheritance-tax deadline in Spain?
An inheritance return is generally due within six months of the death. A gift return is generally due within 30 business days. The exact form, competent authority and extension procedure depend on the residence and asset facts.