Inheritance & Gift Tax in Spain

Inheritance and gift tax in Spain is regulated at national level, but each autonomous community can adapt tax rates and allowances to suit its own legislation. As a result, tax rates can vary significantly across the country.
In general, inheritance and gift tax rates in Spain range from 7.65% to 34%, depending on the autonomous community involved and the value of the assets received.

Who Pays Inheritance Tax?Inheritance tax in Spain applies to both residents and non-residents.
Also known as Succession and Donation Tax (Impuesto sobre Sucesiones y Donaciones – ISD), it is a progressive tax payable when an individual receives an inheritance or donation, whether that is property, money or any other type of asset, from a friend or relative.
European Union citizens who are resident in Spain are taxed under the same rules as Spanish citizens. This ensures equal treatment and removes discrimination between Spanish and other EU residents.

How Residency Affects Inheritance Tax
  • When the heir is resident in the European Union, the inheritance tax rules of the autonomous community where the deceased had their habitual residence may apply, provided legal criteria and evidence of residency are met.
  • If the heirs are resident in Spain but the inherited assets are located outside Spain, Spanish inheritance tax may still apply, in accordance with the relevant regional regulations.
  • In these cases, any inheritance tax paid in another country for the same assets can usually be deducted, helping to avoid double taxation.

Inheritance tax can be complex, particularly when different countries, regions or residency statuses are involved. Clear advice at the right time can make a significant difference.

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