Inheritance Tax Charges in Spain
The seventeen autonomous regions in Spain all have different taxes payable by heirs inheriting assets as well as certain allowances and we have a summary of those below. Here are the tables used to calculate Spanish inheritance tax.
The table below is relevant for determining the level of inheritance tax due in Spain, however each region has its own separate calculations which heirs and executors need to be aware of when calculating any tax. For example: Andalucia, Canary Islands, Valencia, Murcia, Balearic Islands and Catalonia.
| Value of estate
(Up to euros) |
Tax payable
(Euros) |
Balance of tax payable
(Until euros) |
Applicable rate
(Percentage %) |
|---|---|---|---|
| 0,00 | 7 993,46 | 7,65 | |
| 7 993,46 | 611,50 | 7 987,45 | 8,50 |
| 15 980,91 | 1 290,43 | 7 987,45 | 9,35 |
| 23 968,36 | 2 037,26 | 7 987,45 | 10,20 |
| 31 955,81 | 2 851,98 | 7 987,45 | 11,05 |
| 39 943,26 | 3 734,59 | 7 987,46 | 11,90 |
| 47 930,72 | 4 685,10 | 7 987,45 | 12,75 |
| 55 918,17 | 5 703,50 | 7 987,45 | 13,60 |
| 63 905,62 | 6 789,79 | 7 987,45 | 14,45 |
| 71 893,07 | 7 943,98 | 7 987,45 | 15,30 |
| 79 880,52 | 9 166,06 | 39 877,15 | 16,15 |
| 119 757,67 | 15 606,22 | 39 877,16 | 18,70 |
| 159 634,83 | 23 063,25 | 79 754,30 | 21,25 |
| 239 389,13 | 40 011,04 | 159 388,41 | 25,50 |
| 398 777,54 | 80 655,08 | 398 777,54 | 29,75 |
| 797 555,08 | 199 291,40 | and beyond | 34,00 |
The location of the assets will determine whether the heirs are entitled to increased personal inheritance tax allowances or not. Generally under national Spanish law each group would be entitled to the following allowances:
- Group I. Children, grandchildren, adopted children, minors all under the age of 21 can inherit 15.956,87 euros free of tax plus 3.990,72 euros for each year that a child is under the age of 21 without exceeding 47.858,59 euros.
- Group II. Children and adopted children over the age of 21, parents, grandparents, spouses up to 15.956,87 euros.
- Group III. Brothers, sisters, aunts, uncles, step children, step parents up to 7.993,46 euros.
- Group IV. Cousins, other family members and non family members- no allowance
| Existing wealth | Groups of relatives – multiplier | ||
|---|---|---|---|
| Euros | I y II | III | IV |
| From 0 to 402.678,11 | 1,0000 | 1,5882 | 2,0000 |
| From 402.678,11 to 2.007.380,43 | 1,0500 | 1,6676 | 2,1000 |
| From 2.007.380,43 to 4.020.770,98 | 1,1000 | 1,7471 | 2,2000 |
| More than 4.020.770,98 | 1,2000 | 1,9059 | 2,4000 |
If a person in Group 4 inherits Spanish assets than the tax set out in the table above is multiplied by 2. For example someone inheriting assets of 159,634.83 euros would pay tax of 23,063.25 euros x 2 amounting to a total of 46,126.50 euros.
Depending on the pre existing wealth of the heir, a multiplier could also be applied to the tax.
THE AUTONOMOUS REGIONS TEND TO IMPROVE THE ABOVE ALLOWANCES AND BELOW WE SET OUT EXAMPLES OF INHERITANCE ALLOWANCES IN SOME OF THE MOST POPULAR REGIONS.
Although we have inserted the Spanish inheritance tax tables on this page and mentioned some of the regional allowances, we fully appreciate that it is not easy to calculate the Spanish inheritance tax payable.
With InheritingSpanishAssets.com our legal costs are fixed. However, in addition you will pay:
Notary fees
Translations of foreign documents
Land Registry fees if there is a property in the Spanish estate
Inheritance tax (if applicable)
NIEs
Courier fees
Andalucia
- From 1 January 2018, the personal allowance for direct heirs groups I. & II. increased to 1.000.000€ for each heir.
- In addition there is a discount of 99% on inheritance and donations.
Canary Islands
- Group I. : Children
a) Children under the age of 10, 100% of the assets however the reduction cannot exceed 138.650 euros
b) Children under the age of 15 or of the same age but older than 10, 100% of the assets however the reduction cannot exceed 92.150 euros
c) Children under the age of 18 or of the same age but older than 15, 100% of the assets however the reduction cannot exceed 57.650 euros
d) Children under the age of 21 or of the same age but older than 18, 100% of the assets however the reduction cannot exceed 40.400 euros
- Group II. : Children and adopted children over the age of 21, parents, grandparents, spouses
a) Spouses: 40.400 euros
b) Children and adopted children: 23.125 euros
c) Rest of descendants: 18.500 euros
d) Ascendants or adopted children: 18.500 euros
- Group III. : Brothers, sisters, aunts, uncles, step children, step parents up to 9300 euros.
- Group IV. : Cousins, other family members and non family members no allowance
Community of Valencia (Alicante, Valencia & Castellon)
- Group I. Children, grandchildren, adopted children, minors all under the age of 21 can inherit up to 156,000 euros. The rest have a discount of 75% of the applicable inheritance tax as calculated from the table above and you will pay tax on the remaining 25% of the Spanish assets.
- Group II. Children and adopted children over the age of 21, parents, grandparents, spouses up to 100,000 euros. The rest have a discount of 50% so you will pay tax on the remaining 50% of the Spanish assets.
- No further allowances so we revert to the national table above for Groups III & IV.
Murcia
- Groups I & II. Children, grandchildren, adopted children, minors all under the age of 21, 99% deduction of the tax payable.
- No further allowances so we revert to the national table above for Groups III & IV.
- The tax payer can also deduct inheritance taxes that they may have paid abroad on overseas assets.
Balearic Islands
- Group I. Children under the age of 21 can inherit 25,000 euros free of tax plus 6,250 euros for each year that a child is under the age of 21 without exceeding 50,000 euros.
- Group II. Children and adopted children over the age of 21, parents, grandparents, spouses up to 25,000 euros.
- Group III. Brothers, sisters, aunts, uncles, step children, step parents up to 8,000 euros.
- Group IV. Cousins, other family members and non family members- 1,000 euros
There is a reduction of 99% of the tax payable for heirs in Group I.
Catalonia
- Group I. Children under the age of 21 can inherit 100,000 euros free of tax plus 12,000 euros for each year that a child is under the age of 21 without exceeding 196,000 euros.
- Group II. Children and adopted children over the age of 21, spouses and stable partner up to 100,000 euros. Rest of descendants 50,000 euros and ascendants 30,000 euros
- Group III. Brothers, sisters, aunts, uncles, step children, step parents up to 8,000 euros.
- Group IV. Cousins, other family members and non family members no allowance
Inheriting assets in Spain
The process needs a thorough understanding to ensure that you carry out the wishes of your loved ones and pay the appropriate tax. We offer a practical, professional English-speaking service to help you with inheriting Spanish assets.
If you would like to discuss how to manage your recent inheritance, then please contact us or telephone us on +34 951 820 099.