Legal Requirements & Documentation
Inheritance and gift tax in Spain in 2026: the rules region by region
Who pays Spanish inheritance and gift tax, how each region treats close family in 2026, and the deadlines for residents and non-residents.
Updated: October 2026
Spain has one inheritance and gift tax, but seventeen regions that each set their own discounts. That is why the same inheritance can cost almost nothing in Málaga and a five-figure sum elsewhere. This guide explains who pays, how the tax is worked out, what each region offers close family in 2026, and the deadlines foreign residents and non-residents need to know.
How inheritance and gift tax works in Spain
The tax is called Impuesto sobre Sucesiones y Donaciones (ISD). Unlike in the UK or Ireland, it is not paid by the estate. It is paid by each person who receives something: the heir, the person named in a legacy, the beneficiary of a life insurance policy, or the person who receives a gift.
The state law (Ley 29/1987) sets the basic rules, a scale and the family groups. The regions then add their own reductions and bonuses, and in practice those regional rules decide how much you pay. The Basque Country and Navarra have their own separate (foral) systems.
- Residents in Spain pay on everything they inherit or receive, wherever in the world it is.
- Non-residents pay only on assets located in Spain, such as a flat on the Costa del Sol or a Spanish bank account.
The family groups and the state scale
How close you were to the person who died (or who gives you the gift) matters more than anything else. The law uses four groups:
| Group | Who is in it |
|---|---|
| Group I | Children and adopted children under 21 |
| Group II | Children aged 21 or over, spouses, parents and grandparents |
| Group III | Brothers and sisters, nephews and nieces, uncles and aunts, and in-laws |
| Group IV | Cousins, more distant relatives and people who are not related (including unmarried partners under the state rules) |
Under the state rules, the taxable amount is first reduced by an allowance for your group (for example €15,956.87 for Group II, more for young children). The state scale then runs from 7.65% to 34%, and the result is multiplied by a coefficient that rises for distant relatives and for heirs who already have significant wealth. For a non-relative this can push the effective rate well above 34%.
There is also a state reduction of 95% on the value of the deceased’s main home when it goes to a spouse, child or parent (or a relative over 65 who lived there), capped at €122,606.47 per heir and normally conditional on keeping it for ten years. Several regions improve this.
Rules by region for close family in 2026
For spouses, children and parents (Groups I and II), most regions now cut the tax to a symbolic amount. The table summarises the 2026 position according to the Ministry of Finance’s annual report on regional taxation. Conditions apply in every region, so treat this as a starting point, not a calculation.
| Region | Inheritance (Groups I and II) | Gifts (Groups I and II) |
|---|---|---|
| Andalucía | 99% bonus on the tax | 99% bonus |
| Madrid | 99% bonus | 99% bonus |
| Comunitat Valenciana | 99% bonus | 99% bonus |
| Región de Murcia | 99% bonus | 99% bonus |
| Canarias | 99.9% bonus | 99.9% bonus |
| Illes Balears | 100% bonus | 100% bonus |
| Cantabria | 100% bonus | 100% bonus |
| Castilla y León | 99% bonus | 99% bonus |
| La Rioja | 99% bonus | 99% bonus |
| Extremadura | 99% bonus | 99% up to €300,000, partly above |
| Galicia | Own lower scale and larger reductions; 99% bonus for Group I | Reduced rates of 5% to 9% |
| Aragón | Large reductions (up to €500,000 for spouse, parents and adult children combined); 99% bonus for Group I | Reductions and bonuses with limits |
| Castilla-La Mancha | Bonus from 100% down to 80%, depending on the amount | Bonus from 95% down to 85% |
| Cataluña | 99% bonus for spouses; sliding bonus for children and other close family that falls as the amount rises | Reduced rates of 5% to 9% |
| Asturias | Improved reductions for close family | Own reduced scale |
For brothers, sisters, nephews and nieces (Group III) the picture is less generous. Madrid gives a 50% bonus, Canarias 99.9%, and the Balearics partial bonuses. The Comunitat Valenciana is phasing in a bonus for this group: 25% from 1 June 2026 and 50% from 1 June 2027. In many regions, siblings and especially non-relatives still face a real bill.
Which region’s rules apply to you
For inheritances, the key is where the person who died lived for most of the last five years, not where the heir lives or where the property is. If the deceased lived in Andalucía, Andalusian rules apply even if the heir lives in Madrid or abroad.
Non-residents were for many years taxed under the less favourable state rules. After European court rulings, the law was changed, and since 2021 non-residents from any country can opt for the regional rules:
- Deceased lived in Spain, heir lives abroad: the rules of the region where the deceased lived.
- Deceased lived abroad: the rules of the region where most of the Spanish assets are located.
- Gift of Spanish property: the rules of the region where the property is.
Non-residents file with the national tax agency (Agencia Tributaria) rather than the regional tax office, and you must tick the option to apply the regional rules on the form.
Deadlines, forms and other costs
- Get the death certificate and the certificate of last wills to find out whether there is a Spanish will.
- Value the assets at the date of death. The Cadastre publishes a reference value (valor de referencia) for most properties, and declaring less usually leads to a correction.
- File and pay within six months of the death. You can ask for a further six months if you apply within the first five months; interest then runs on the extra time.
- Use the right form: modelo 650 for inheritances and modelo 651 for gifts (regions may use their own versions). Under the state rules, a gift must be declared within 30 working days.
Even when the regional bonus brings the tax to almost zero, you must still file. Missing the deadline means surcharges and interest, and some regional benefits are tied to filing on time.
Watch out for two other taxes. Inheriting or receiving urban property usually triggers the municipal plusvalía (tax on the increase in land value), paid to the town hall. And when you give property during your lifetime, the donor may owe income tax on any capital gain since they bought it, even though no money changes hands. That income tax charge does not apply to inheritances.
Practical tips for foreign families
- Check your home country too. Some countries tax the same inheritance. Spain gives credit for tax paid abroad in many cases, but the interaction is complex.
- Gifts need paperwork. Most regional gift bonuses require a notarial deed, and for cash gifts proof of where the money came from.
- Make a Spanish will. It speeds up the process and avoids having to translate and legalise foreign documents.
- Get help early. A gestor or lawyer who handles inheritances can run the numbers before the deadline, and sometimes before the death, when planning is still possible.
Useful links
- Ministry of Finance: Tributación Autonómica 2026 (regional tax rules)
- Agencia Tributaria: modelo 650 for non-residents
- Agencia Tributaria: instructions for modelo 650 (non-residents, PDF)
- Taxes for foreign property owners in Spain in 2026
- Understanding the tax system in Spain
- Funerals in Spain for foreigners: what families need to know
FAQ: inheritance and gift tax in Spain
Does a spouse pay inheritance tax in Andalucía?
Usually very little. Spouses, children and parents get a 99% bonus on the tax in Andalucía, but the return must still be filed within six months.
I live abroad and inherit a flat in Spain. Do I pay Spanish tax?
Yes, on the Spanish assets. You file with the Agencia Tributaria and can choose the regional rules, which are normally more favourable than the state rules.
Are unmarried partners treated like spouses?
Under the state rules, no: they fall in Group IV. Several regions treat registered partners (pareja de hecho) like spouses, so check your region and register the partnership in time.
What happens if I miss the six-month deadline?
You pay surcharges and late interest, and some regional benefits depend on filing on time. Ask for the extension within the first five months if you need more time.
Disclaimer: This article is general information only and is not legal or tax advice. Regional rules change often and every bonus has conditions – always check with your regional tax office or a qualified gestor or lawyer before you act.
