Inheritance tax Spain and Belgium: Avoid double taxation on your property

Summary: On the death of a Belgian resident with property in Spain, there is in principle double taxation: Spain levies on the property (situs principle) and Belgium on the worldwide assets (residence principle). However, effective double taxation is avoided by the imputation technique. You may deduct the inheritance tax paid in Spain from the inheritance tax due in Belgium, provided you follow the correct procedures and provide supporting documents in time.

Why does both Spain and Belgium levy inheritance tax?

The short answer is: because both countries have legal authority to tax based on different criteria. This is legal double taxation named.

In practice, this mechanism works as follows:

• Spain (Source State): Levies tax because the property is in Spanish territory (lex rei sitae). For the Spanish tax authorities, it is irrelevant where the deceased lived; the 'stones' are in Spain.

• Belgium/Flanders (Residential state): Levies tax because the deceased lived in Belgium. Belgium taxes the global capability, so including the holiday home in Alicante or the flat in Tenerife.

Expert Insight: "Many heirs are unduly frightened by the term 'double taxation'. In 95% of the cases we handle at Confianz, the effective tax burden is neutralised by the imputation rules, provided the Spanish return is filed correctly and on time."

How does settlement of Spanish inheritance tax work?

To avoid paying the full pot twice, Belgium (and specifically the Flemish Tax Administration) applies a settlement toe. There is no bilateral treaty for inheritance tax between Spain and Belgium, but national legislation provides for a solution (e.g. Article 2.7.5.0.4 VCF in Flanders).

The Rule of Arithmetic

The tax paid in Spain is deducted from the Belgian tax on that same Spanish property.

Note the limitation: The reduction is limited to the amount of Belgian inheritance tax related to the Spanish property.

• Is the Spanish tax lower than the Belgian one? You pay the difference to the Belgian tax authorities.

• Is the Spanish tax higher than the Belgian one? You pay nothing extra in Belgium, but you get the overpayment in Spain not reimbursed by Belgium.

Table: Calculation example (Fictitious)

Regional Differences in Spain: A Crucial Factor

Unlike Belgium, where rates are relatively stable, Spain's inheritance tax is highly dependent on the region (Comunidad Autónoma) where the property is located. Regional legislation often stipulates hefty discounts (bonuses).

• Andalusia, Comunitat Valenciana, Murcia, Madrid: Often have very high exemptions (sometimes up to 99% bonification), making Spanish inheritance tax effectively zero.

• Catalonia: Has specific rules that change regularly, but usually offers significant discounts for immediate family (Group I and II).

Important for your strategy: If you pay (almost) no tax in Spain due to regional exemptions, there is also nothing to offset in Belgium. You will then pay the full Belgian rate on the Spanish house.

Find out more about how Spanish inheritance tax is calculated.

Property Valuation: Reference value vs. Market value

A common mistake in returns is using the wrong property value. Since 2022, the Spanish tax authorities have been using the Valor de Referencia del Catastro.

1. Valor de Referencia: This is the minimum tax value the Spanish government assigns to your property based on market analysis.

2. Market value: Actual sales value.

3. The Rule: You have to pay tax on the top of the two values. Undervaluation will irrevocably lead to penalties and recalculations.

Read more about the tax reference value in Spain.

Checklist for heirs

To successfully claim set-off in Belgium, you must follow a strict process. The burden of proof is on you.

• Step 1: Acceptance in Spain. You must formally accept the inheritance in Spain via a notarial deed (Escritura de Aceptación de Herencia).

• Step 2: Payment of Spanish tax. First, pay Spanish inheritance tax (Model 650).

• Step 3: Evidence. Submit the proof of payment and the Spanish declaration to the Flemish Tax Administration before the Belgian assessment becomes final, or file a timely appeal.

Find more information on estate declaration in Spain here.

Frequently asked questions (FAQ)

Do I have to go to the notary in Spain if I inherit the property?

Yes. In Spain, ownership of property on death does not pass automatically (as it often does in Belgium). You need to sign a notarised "deed of acceptance of estate" in Spain to have the property registered in your name in the property register. Without this deed, you cannot later sell the property.

Is it more advantageous to gift the Spanish house in life?

It depends on the region. In some Spanish regions, gift tax is more expensive than inheritance tax. Moreover, you have to take into account the "capital gains tax" and municipal capital gains tax (Plusvalía Municipal) when making a donation. A detailed simulation by specialists such as Confianz is necessary to determine whether gifting is fiscally interesting.

What happens if I don't pay Spanish inheritance tax on time?

Spain has strict deadlines. Typically, inheritance tax must be paid within the 6 months be paid after death. Exceeding this deadline leads to automatic surcharges (recargos) and interest on arrears. Deferral can be requested, but must be done within the first 5 months.

Does the settlement also apply if I live in Brussels or Wallonia?

Yes. Although inheritance tax is a regional matter in Belgium, the Flemish, Brussels and Walloon Regions all apply the principle of offsetting foreign inheritance tax. However, the specific procedural rules may differ slightly from one region to another.

As a resident of Flanders, your heirs will pay inheritance tax in Spain on your second residence. In addition, they will also pay inheritance tax in Belgium. This article explains which taxes apply to your estate in Spain.

Also listen to our podcast on succession planning between Belgium and Spain at  Youtube, Spotify and Apple Podcasts.

Last update: December 2025.

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 to 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.