Zuuring Lawyers | Spanish inheritance tax
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Spanish inheritance tax

A GUIDE TO SPANISH INHERITANCE TAX

If you own a property in Spain, it is advisable to seek qualified professional advice in order to make the best arrangements for you and your family.

WILLS:

Spanish laws protect family heirs in that they restrict the testators freedom to dispose of his estate to anybody he so chooses. A non-Spanish national can make a Spanish will bequeathing their assets as they wish under the law of their own country.

Your foreign wills are valid in Spanish inheritance cases, but we highly recommend to have a Spanish will just for your Spanish assets in order to avoid complications and high costs during the inheritance process. Upon making a Spanish will you must ensure that your foreign will excludes Spain and that any subsequent will you make in another country does not supersede the testementary dispositions under your Spanish will.

INHERITANCE TAX:

Calculating Inheritance tax

Tax is chargeable on inheritance by the spouse, children or any other party who receives any part of the deceased´s estate in Spain. There is a tax-free allowance of € 15.956,87 when left to spouse and children, € 7.993,46 for brother/ sisters, nephews/ nieces, aunts/ uncles. There is no tax-free allowance for relatives in forth degree or friends.

Once the allowance has been deducted the tax rate applicable is then charged on a sliding scale, please find below. The value of the property you need to declare will be the minimum value of the property accepted by the Spanish Tax Office (valor fiscal).

It is important to take steps to lower your Spanish succession tax liability, where possible, e.g.:

  • BUY JOINTLY WITH FUTURE INHERITORS.
  • SELL THE PROPERTY TO FUTURE INHERITORS EITHER FULLY OR PARTLY.
  • TAKE OUT A MORTGAGE LOAN ON THE PROPERTY.
  • ORGANISING LIFE INSURANCE ENSURING ADEQUATE FUNDS TO COVER THE INHERITANCE TAX BILL.
AmountPercent (%)
0 up to 7,993.46€7.65
Up to 15,980.91€8.50
Up to 23,968.36€9.35
Up to 31,955.81€10.20
Up to 39,943.26€11.05
Up to 47,930.72€11.90
Up to 55,918.17€12.75
Up to 63,905.62€13.60
Up to 71,893.07€14.45
Up to 79,880.52€15.30
Up to 119,757.67€16.15
Up to 159,634.83€18.70
Up to 239,389.13€21.25
Up to 397,555.08€25.50
Up to 797,555.08€29.75
Over 797,555.08€34.00