Inheriting in Catalonia: taxes

Do you have to pay inheritance tax if you inherit property in Catalonia? Yes, if you inherit as a non-resident property located in Catalonia (such as Barcelona, Girona, Tarragona or Lleida), you will be liable for inheritance tax (Impuesto de Sucesiones) in Spain. However, the Catalonia region has specific exemptions up to €100,000 for close relatives and a progressive rate starting at 7%.

Expert Insight: "Many Belgians and Dutch people mistakenly think there is a complete double taxation. In practice, the inheritance tax paid in Spain is often deducted from the inheritance tax at home, keeping the tax burden manageable."

How is the value of Spanish property determined?

The basis for calculating inheritance tax is not simply the market value, but the tax reference value.

Since 2022, the Spanish tax authorities have applied the Valor de Referencia del Mercado. This is the minimum administrative value assigned to a property by the Land Registry.

• Valor de Referencia: This is the floor price for the tax calculation. Is the actual sales value or estimated market value in the deed higher? Then the highest value applies.
• No reference value? Only if no official reference value is available, may one fall back on the tax value (often cadastral income multiplied by a coefficient) or the declared market value.

Confianz can request the tax value for you.

Calculation example:

You inherit a flat in Sitges.

• Estimate broker (Market value): € 190.000
• Valor de Referencia (Land Registry): € 118,000
• Tax base: You may include in the declaration € 118.000 hold (if this is the official reference value), even if the market value is higher. This significantly lowers your taxable base.

Read more about the steps when settling an estate in Spain.

Exemptions and Reductions in Catalonia

Catalonia applies specific deductions to the taxable base. These are determined by the degree of kinship with the deceased (causante).

Personal reductions (Group I and II)

For most direct heirs (children and spouses), there are generous exemptions that are first deducted from the value:

• Group I (Children < 21 years old): €100,000 + €12,000 per year under 21 (with a maximum of €196,000).
• Group II (Spouses and children > 21 years): Standard reduction of € 100.000 per heir.
• Disabled people: Additional reduction between €275,000 and €650,000, depending on the degree of disability.
• Elderly people (>75 years): Additional reductions may apply in specific cases.

'Bonification' (Discount on tax)

In addition to the reduction on the value, Catalonia also has a bonus on the amount payable for spouses and children.

• This discount ranges from 99% to 57%, depending on the amount of the inheritance. The lower the inheritance, the higher the discount rate.

Inheritance tax rates Catalonia (Table)

After deducting the deductions, the rate is applied to the remaining amount (the taxable base). Rates in Catalonia are progressive.

Source: Agencia Tributaria de Cataluña (ATC)

After that rate, you officially have to have a coeficient multiplier apply to the final "quota íntegra". This depends on the patrimonio preexistente (existing assets heir) and the degree of kinship.

Case study: How much do you actually pay?

Let's work out a realistic case for two brothers inheriting from their mother.

Situation:

• Property in Catalonia (tax value): € 120.000
• Bank balances in Spain: €20,000
• Total estate Spain: € 140.000
• Inheritance per person: € 70.000

Calculation per heir:

1. Value inheritance: € 70.000
2. Reduction (Child > 21 years): – € 100.000
3. Taxable base: € 0
4. Inheritance tax payable: € 0

What in the case of a larger inheritance (€500,000 total)?

• Inheritance per person: €250,000
• Reduction: - €100,000
• Taxable base: € 150.000

Tax calculation:

• Disc 1 (up to €50,000 of 7%): €3,500
• Disc 2 (€100,000 to 11%): €11,000
• Total before bonification: € 14.500
  The coefficient is 1.
• Note: A bonification (discount) may still apply to this, depending on the total asset position, degree and any special circumstance.

Here you will find more detailed information on estate declaration in Spain.

Additional costs and taxes

In addition to inheritance tax, you should consider the following cost items to settle the estate correctly:

1. Plusvalía Municipal: A municipal tax on the increase in value of land. It must be paid on any transfer of ownership (including death) and varies from one municipality to another. Read more about the plusvalia muncipal.
2. Notary and registry fees: For drafting the Escritura de Aceptación de Herencia and entry in the Spanish property register.
3. Gestoria & Attorney fees: For tax processing, translations and powers of attorney.

Important: The return period for Spanish inheritance tax is 6 months after death. Renewal is possible, but must be requested in time to avoid penalties.

Relationship with Belgian Inheritance Tax

Do you have to pay twice? In principle, the Spanish property is part of your worldwide estate in Belgium (Flanders, Brussels or Wallonia).

• Flanders: The Flemish Tax Code provides that inheritance tax paid abroad on real estate may be deducted from Flemish inheritance tax (article 2.7.5.0.4).
• Results: In practice, you often pay only the highest rate of the two countries, but no double taxation.

Read more about inheritance tax in Flanders and Spain.

Frequently asked questions (FAQ)

What is the inheritance tax exemption in Catalonia for children?

Children over 21 are entitled to a general exemption of €100,000. For children under 21, this €100,000 plus an additional €12,000 for each year they are under 21 (up to a maximum of €196,000).

How much time do I have to declare the inheritance in Spain?

You have legally 6 months time from the date of death to complete the Spanish inheritance tax return and payment. If necessary, you can apply for a 6-month extension within the first 5 months (which does incur default interest).

Do I pay tax on the market value or the cadastral value?

Since 2022, you pay tax on the Valor de Referencia del Mercado (the reference value determined by the land registry), unless the value in the deed is higher. If there is no reference value, the market value applies.

Is there a treaty between Belgium and Spain for inheritance tax?

No, there is no specific double taxation treaty for inheritance tax between Belgium and Spain. However, Belgian legislation allows inheritance tax paid in Spain on property to be credited against Belgian inheritance tax to avoid double taxation.

What about estate declaration of Spanish property for Flemish inheritance tax?

About the author: Glenn Janssens is a lawyer specialising in Spanish real estate transactions and tax regulations. Since 2017, he has been helping Belgian and Dutch individuals and entrepreneurs safely purchase and structure real estate in Spain. He guides files from A to Z: from due diligence, ownership and tax control to estate planning and optimisation for residents and non-residents. Thanks to his years of experience, hundreds of handled files and focus on transparent communication, Glenn makes complex Spanish legislation understandable and practically applicable for every property buyer.