When a non-resident inherits or receives a gift of assets located in Spain — including property, bank accounts, or investments — Spanish Inheritance and Gift Tax (ISD, Impuesto sobre Sucesiones y Donaciones) applies. In 2026, the applicable tax burden depends critically on which autonomous community’s rules govern the estate.
The Two Events That Trigger Spanish ISD
| Transfer Type | Event | Tax Form | Deadline |
|---|---|---|---|
| Inheritance (mortis causa) | Death of the asset owner | Form 650 (Modelo 650) | 6 months from date of death (extendable to 12) |
| Gift (inter vivos) | Voluntary transfer during donor’s lifetime | Form 651 (Modelo 651) | 30 WORKING DAYS from deed date |
Warning: The 30-working-day gift tax deadline is one of the most frequently missed in all Spanish tax law.
Which Law Governs the Inheritance? EU Regulation 650/2012
Under EU Regulation 650/2012 (Brussels IV), an international succession is governed by the law of the country where the deceased had their habitual residence at death — NOT by their nationality.
Examples
- A German national living in Spain who dies with property in Germany and Spain → Spanish law governs the entire succession.
- A British national living in the UK who dies with a property in Spain → UK succession law governs the estate structure, but Spanish ISD still applies to the Spanish property.
- A French national living in France who dies with a Spanish apartment → French law governs the succession, but the Spanish property triggers Spanish ISD for the heirs.
Professio Juris (Brussels IV Election)
EU nationals can explicitly elect their nationality’s law in their will to govern the succession — instead of the default habitual residence law. This is particularly valuable for:
- People whose home country has no forced heirship rules (England & Wales, common law jurisdictions).
- People with complex family structures (second marriages, step-children, unmarried partners).
Important: The election governs succession law only (who inherits) — it does NOT affect Spanish ISD tax obligations on Spanish assets.
Post-Brexit Note — UK Nationals
EU Regulation 650/2012 still applies to UK national estates to determine which country’s succession law applies. However, UK nationals can NO LONGER make a Brussels IV professio juris election — as the UK is not an EU member state. The regulation still determines which law governs the succession, but the election option is removed.
UK nationals with Spanish property should:
- Make a Spanish will that explicitly addresses Spanish-situated assets.
- Seek specific legal advice from Lextax on succession planning for Spanish assets.
- Note that Spanish ISD is applied under Spanish regional rules regardless of UK succession law.
Spanish Inheritance Tax Scale — State Baseline
| Taxable Base | Rate |
|---|---|
| Up to €7,993 | 7.65% |
| €7,993 – €31,956 | 10.20% |
| €31,956 – €79,881 | 15.30% |
| €79,881 – €239,389 | 21.25% |
| €239,389 – €398,778 | 25.50% |
| €398,778 – €797,555 | 29.75% |
| Over €797,555 | 34.00% |
These are the maximum rates before regional bonifications. In practice, most direct heirs pay far less — or nothing — depending on the region.
Kinship Groups — State Allowances
| Group | Who | State Allowance |
|---|---|---|
| Group I | Descendants under 21 | €15,956.87 + €3,990.72/year under 21 (min. age 13), up to €47,858.59 |
| Group II | Spouses, descendants over 21, ascendants | €15,956.87 |
| Group III | Siblings, nieces/nephews, in-laws, step-relatives | €7,993.46 |
| Group IV | All others (non-relatives, friends) | No state allowance |
Inheritance Tax by Region (2026) — Groups I & II (Direct Heirs)
| Region | Effective Rate (Groups I & II) | Key Changes 2026 |
|---|---|---|
| Madrid | Near 0% (99% bonification, no limit) | Most favourable in Spain for any estate size |
| Andalusia | Near 0% (99% bonification up to €1M) | 100% relief below €1M; standard scale above |
| Canary Islands | Near 0% (99.9% bonification) | Effectively zero for direct heirs and spouses |
| Balearic Islands | 0% (100% bonification) | Full exemption for Groups I & II |
| Extremadura | Near 0% (100% up to €500K, 90% up to €600K) | Excellent for mid-size estates |
| Valencia | Near 0% (99% bonification up to €1M) | NEW from June 2026: Group III 25% bonification (siblings, nephews), rising to 50% from June 2027 |
| Galicia | Near 0% (100% bonification up to €1M) | Very favourable for direct heirs |
| Castilla y León | Near 0% (99% bonification) | Very favourable since 2023 reform |
| La Rioja | Near 0% (98–99% bonification) | Very favourable |
| Asturias | 0% up to €300,000; 99% in specific cases | Full exemption for close family below threshold |
| Catalonia | Variable (up to 99% with age-related conditions) | Complex — less automatic than Madrid/Andalusia |
| Aragon | Moderate (50% bonification, Groups I & II) | Less generous than southern regions |
| Navarra | 0% up to €250K (spouses/descendants) | Foral system — excellent for moderate estates |
| Basque Country | Very favourable (foral system) | Each territory has its own rules |
| Murcia | Moderate | Less generous than frontrunner regions |
| Cantabria | Moderate | Some regional bonifications available |
Gift Tax — Inter Vivos Donations
Gift tax applies when assets are transferred voluntarily and gratuitously during the donor’s lifetime.
CRITICAL: The gift tax deadline is only 30 WORKING DAYS from the deed date — far shorter than the inheritance deadline.
For real estate donations, the applicable regional rules are always those of the autonomous community where the property is located — regardless of where the donor or recipient lives.
Double Taxation Risk
When a non-resident donor gives away property in Spain, two taxes can apply simultaneously:
- Spain: gift tax on the recipient (ISD — Form 651).
- Home country of the donor: capital gains tax (treated as a realisation event in UK, US, Germany, France).
Spain does NOT have a comprehensive network of DTAs specifically covering gift tax (only France, Sweden, Greece for inheritance). Lextax coordinates the Spanish and home-country tax analysis for every donation.
The 6-Month Filing Deadline — And How to Extend It
Spanish ISD on an inheritance must be filed and paid within 6 months of the date of death.
How to Request a 6-Month Extension
- Request must be submitted within the FIRST 5 MONTHS following the date of death.
- Filed via Form 650 extension request or by written submission to the AEAT.
- The extension covers the filing deadline only — statutory late-payment interest accrues from the end of the original 6-month period.
- If no response within 1 month of submission (and request made within 5 months), extension is deemed granted by silence.
Penalties for Late Filing
- Up to 3 months late: 5%
- 3–6 months late: 10%
- 6–12 months late: 15%
- Over 12 months late: 20% + late payment interest
Estate Planning Strategies for Non-Residents
Strategy 1: Make a Spanish Will
A Spanish will that addresses Spanish-situated assets is strongly recommended for any non-resident property owner. It avoids probate delays, is interpreted under Spanish law by Spanish notaries, and can include a Brussels IV election clause.
Strategy 2: Make a Brussels IV Election (EU Nationals Only)
EU nationals resident in Spain or spending significant time here should consider explicitly electing their nationality’s law in their Spanish will. Particularly valuable for people from common law jurisdictions (England & Wales, Scotland) where forced heirship does not exist. NOT available to UK nationals post-Brexit.
Strategy 3: Location of Property Purchase
Since ISD regional rules depend on where the property is located, buyers should factor inheritance tax into their purchase decision. A Madrid property attracts near-zero ISD for direct heirs; the same property in another region may generate a significant bill.
Strategy 4: Lifetime Gifts vs. Inheritance
In regions with generous gift tax bonifications (Canary Islands, Balearics, Andalusia, Valencia — now with Group III bonification), lifetime donations may be tax-efficient. ALWAYS analyse the donor’s home-country capital gains tax consequences simultaneously.
Strategy 5: Double Taxation Treaty Analysis
Spain has DTAs covering inheritance/gift tax with France, Sweden, and Greece only. For UK, US, Germany, Belgium, Netherlands, Israel, Australia — no DTA exists. Most home-country systems offer a credit for foreign inheritance tax paid, which Lextax structures to minimise double taxation.
Practical Process: When a Non-Resident Inherits Spanish Property
| Step | Action | Timeline |
|---|---|---|
| 1 | Obtain death certificate and apostille | Within 1–2 weeks of death |
| 2 | Submit extension request to AEAT (if needed) | Within 5 months of death |
| 3 | Obtain NIE numbers for all non-resident heirs | 4–6 weeks |
| 4 | Obtain certificate of last wills (Registro de Actos de Última Voluntad) | 15 working days after death |
| 5 | Obtain Spanish will (if one exists) | Concurrent with step 4 |
| 6 | Obtain European Certificate of Succession or apostilled foreign will | 2–6 weeks |
| 7 | Value Spanish assets (property, bank accounts, investments) | 2–4 weeks |
| 8 | Prepare and file Form 650 with AEAT or regional authority | Before 6-month deadline (12 if extended) |
| 9 | Pay ISD | Simultaneously with step 8 |
| 10 | Register change of ownership at Land Registry | After ISD payment certificate obtained |
Frequently Asked Questions
Do non-residents pay inheritance tax in Spain?
Yes — but only on assets located in Spain. Following CJEU rulings in 2014 and 2018, all non-residents (including non-EU) can apply the same regional bonifications as Spanish residents.
Valencia reduced its inheritance tax in 2026 — what changed exactly?
From June 2026, Valencia: (1) maintains the 99% bonification for Groups I & II up to €1M; (2) NEW — adds a 25% bonification for Group III (siblings, nieces/nephews, in-laws), rising to 50% from June 2027.
Can UK nationals still use Brussels IV to choose English law for their succession?
No. Post-Brexit, UK nationals cannot make a Brussels IV professio juris election. However, EU Regulation 650/2012 still determines which country’s succession law applies to their estate. UK nationals should seek specific legal advice on Spanish succession planning.
How long do non-residents have to file inheritance tax in Spain?
6 months from the date of death. A single 6-month extension can be requested (bringing total to 12 months) — but the request must be submitted within the first 5 months.
What is the gift tax deadline in Spain?
Only 30 working days from the date of the gift deed — far shorter than the inheritance deadline. Missing it results in automatic surcharges. Lextax coordinates filing well before this deadline.
Which region has the lowest inheritance tax for non-residents?
Madrid (99% bonification, no limit — effectively zero for direct heirs), followed by Andalusia, Canary Islands, Balearic Islands, and Galicia. Valencia is significantly improved in 2026 with new Group III bonifications.
Let Lextax Manage Your Spanish Inheritance or Donation
International inheritance in Spain involves strict deadlines, complex interactions between multiple legal systems, and significant tax planning opportunities that can only be captured before — not after — the event.
- Form 650 preparation and filing + extension request management
- Form 651 (gift tax) preparation and filing within 30-working-day deadline
- Spanish will drafting + Brussels IV election clause (EU nationals)
- Post-Brexit succession planning for UK nationals
- Forced heirship planning for EU and non-EU nationals
- Double taxation analysis: Spain + home country (UK, US, Germany, France, Israel, etc.)
- NIE management for non-resident heirs
- Post-inheritance Land Registry registration + Form 210 takeover
Contact Lextax for an Initial Assessment of Your Spanish Inheritance
