Spanish inheritance tax (Impuesto sobre Sucesiones) are due when an heir lives in Spain or when Spanish property (such as a second residence) is included in the estate. The tax burden varies enormously by region, with autonomous regions such as Valencia, Andalusia and Murcia applying rate reductions of up to 99% for immediate family members since 2024/2025.
As a property owner in Spain, proper estate planning is essential. Without preparation, you risk not only Spanish tax, but potentially double taxation in Belgium or the Netherlands. In this article, we explain the calculation method, recent legislative changes and regional differences in detail.
When do you pay inheritance tax in Spain?
You are mandatory Spanish inheritance tax to be paid in two specific situations:
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Personal obligation: The heir is tax resident in Spain (regardless of where the inherited property is located).
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Business obligation: The heir lives not in Spain, but inherits property located in Spanish territory (such as a holiday home in Alicante or Malaga).
Expert Tip: Do not confuse Spanish inheritance tax with the Plusvalía Municipal. This is a separate, municipal tax on the capital gain of the land that must also be paid on death.
The Taxable Base and the 'Valor de Referencia'
Spain calculates tax per heir based on their specific inheritance.
Since 2022, property valuation has become more objective but also stricter. The taxable basis is no longer the subjective market value, but at least the Fiscal Reference Value (Valor de Referencia).
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This value is determined annually by the Spanish Land Registry.
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Is the value stated in the deed higher than the reference value? Then the higher of the two applies.
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Is no reference value available? Then an official estimate must be made.
Learn more about the tax reference value in Spain here.
Blocking arrangement
Note: Heirs cannot legally dispose of (sell) the property until the inheritance tax has been paid and the Form 650 has been submitted.
Discrimination between Residents and Non-Residents: Resolved
Before 2015, non-residents (e.g. a Belgian with a country house) paid significantly more inheritance tax than residents of Spain. The European Court of Justice ruled that this was contrary to the free movement of capital.
The current regulations are clear: Non-residents are entitled to the same regional reductions and exemptions as residents. Did you overpay in the past? If so, there was a right to recover, although the statute of limitations for this has now expired in many cases.
Rates and Regional Reductions (Update 2025)
National base rates vary progressively from 7.65% to 34%. However, the autonomous regions have the power to grant substantial rebates (bonificaciones) to apply. Below is the current situation for the most popular regions.
Find more information on estate declaration in Spain here.
1. Valencia region (Alicante, Castellón, Valencia)
New legislation (Ley 6/2023) in force.
The Valencia region recently drastically reduced inheritance tax for close relatives. The old, complex rules with limited reductions have been replaced by a broad tax break.
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Group I and II (Children, grandchildren, spouses and parents): A bonus (discount) from 99% on the tax due. Specifically, you will pay only 1% of the calculated tax.
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Exemption: In addition, there is a tax-free allowance (minimum exemption) of € 100.000 per heir in this category.
2. Andalusia region (Málaga, Marbella, Seville)
Andalusia has one of the most favourable regimes in Spain for Group I and II.
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Exemption: Inheritances up to € 1.000.000 per heir are fully exempt from inheritance tax.
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Discount: Does the inheritance exceed this million? Then a bonus of 99%.
3. Murcia region
Murcia is also following the trend of fiscal competitiveness.
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Group I and II: There is a 99% tax rebate applicable to spouses, (grand)children and parents.
FAQ: Frequently asked questions about Spanish Inheritance Tax
Below, we answer the most common questions property owners ask.
1. Do I pay double inheritance tax (in Spain and in Belgium/Netherlands)? Yes, this risk exists. As a Belgian national resident, your worldwide assets are taxed in Belgium. You pay tax in Spain because the property is located there ('situs principle'). However, Belgium usually allows you to pay the in Spain already paid Inheritance tax deducted from Belgian inheritance tax (credit).
2. What is the deadline for estate declaration in Spain? You have six months time from the date of death to file the return (Modelo 650) and pay the tax. You can apply for an extension of six additional months within the first five months (which does incur default interest).
3. Is a Spanish will necessary? It is not strictly mandatory, but legally highly recommended. A Spanish will significantly simplifies and speeds up the administrative process (called 'Aceptación de Herencia'), which is crucial to meet the strict six-month deadline.
4. Does the 99% discount in Valencia also apply to partners who are not married? In the Valencia region, de facto cohabitants (parejas de hecho) who are officially registered in the region's registry are treated the same as married couples for the purposes of inheritance tax. Without registration, you fall back on the expensive rate for 'strangers'. However, non-residents often do not have this registration.
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.
