Inheritance Guide
Inheritance Planning in Spain: Regional Rules That Change Everything
Spain is one of the few countries where your inheritance tax bill depends not just on what you inherit, but on which region you live in. The autonomous communities set their own tax rates, so inheriting a property in Madrid might cost you almost nothing in tax, while the same inheritance in Andalusia could come with a significant bill. Add in forced heirship rules that reserve two-thirds of your estate for your children, and planning becomes essential, especially if you own a holiday home on the coast.
Inheritance Tax
The national inheritance tax ranges from 7.65% to 34% on a progressive scale, with multipliers based on pre-existing wealth and relationship. However, most autonomous communities offer substantial reductions. Madrid, for example, offers a 99% reduction for spouses and children, effectively eliminating the tax. Non-residents pay national rates unless they can claim the rules of the region where the assets are located.
Forced Heirship
Spain has forced heirship (legitima). Two-thirds of the estate is reserved for children: one-third must be divided equally (legitima estricta), and another third can be distributed among children as the testator chooses (mejora). The remaining one-third is freely disposable. Some regions like Navarra and the Basque Country have different rules.
Key facts about inheritance in Spain
The details that matter most when planning for your family's future in Spain.
- 1
Forced heirship reserves two-thirds of the estate for children (legitima), though one-third of that can be distributed unequally among them
- 2
Inheritance tax rates range from 7.65% to 34%, but regions apply their own reductions, some nearly eliminating the tax
- 3
Each autonomous community (region) has different inheritance tax rules and allowances
- 4
Spain applies EU Succession Regulation 650/2012
- 5
Non-residents inheriting Spanish assets are subject to the national tax rates
What makes Spain different
These are the considerations unique to Spain that most families don't discover until they need to.
Regional variations mean inheritance planning must be tailored to the specific autonomous community where assets are held
The Modelo 720 foreign asset declaration requires Spanish tax residents to report overseas assets above EUR 50,000
Spanish property often involves a declared value (valor escriturado) that may differ from the real price, creating potential tax complications for heirs
Couples in Spain typically follow a separation of property regime unless they choose otherwise at marriage
Documents commonly needed in Spain
The documents families typically need when dealing with inheritance matters in Spain.
Testamento Abierto (open will, executed before a notary)
Poder Notarial (notarial power of attorney)
Testamento Vital (living will/advance directive)
Escritura de Aceptacion de Herencia (deed of inheritance acceptance)
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Important disclaimer
This content is for general informational purposes only and does not constitute legal, tax, or financial advice. It was created with the assistance of AI and may contain inaccuracies. Inheritance laws change frequently — always consult a qualified attorney or tax advisor in Spain before making decisions about inheritance or estate planning.