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:

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.

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

1. Get the death certificate and the certificate of last wills to find out whether there is a Spanish will.
2. 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.
3. 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.
4. 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

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.

Updated: October 2026

If you are moving to Spain for a job, to work remotely for a foreign company or to run a qualifying business, you may be able to pay income tax under a special regime instead of the normal progressive scale. It is known everywhere as the “Beckham law”, after the footballer who was one of the first high-profile people to use it. This guide explains who can apply in 2026, how the tax works, the deadlines that catch people out and when the regime is not worth it.

What the Beckham law actually is

The official name is the special regime for workers, professionals, entrepreneurs and investors relocating to Spain (régimen especial para trabajadores desplazados, article 93 of the Spanish income tax law). If you opt in, you are a Spanish tax resident, but you pay tax largely as if you were a non-resident.

In practice that means two things:

• A flat rate on work income: employment and qualifying business income is taxed at 24% up to €600,000 a year and 47% on anything above that. Under the normal system, rates climb progressively and the top band starts at a much lower income.
• Most foreign income stays outside Spanish tax: you are generally taxed on Spanish-source income only. Dividends, interest and gains from abroad are usually not taxed in Spain. The important exception is your work income: all employment income earned while on the regime is treated as obtained in Spain, wherever it is paid.

Spanish savings income (for example interest from a Spanish bank or gains on Spanish shares) is taxed on a separate scale, which the Tax Agency’s instructions put at 19% rising to 30% at the top from 2025 onwards.

Who can use it in 2026

The Startups Law (Ley 28/2022) widened the regime considerably, and those rules are what apply in 2026. The main conditions are:

• No recent Spanish tax residence: you must not have been tax resident in Spain in the five tax years before the year you move. Before 2023 it was ten years.
• A qualifying reason for the move: for example a new employment contract with a Spanish employer, a posting by a foreign employer, remote work for a foreign company (the route many digital nomad visa holders use), becoming a company director, or carrying out an innovative entrepreneurial activity or highly qualified professional work for start-ups.
• No permanent establishment: as a general rule you must not earn income through a permanent establishment in Spain, with exceptions for the entrepreneur route.
• Not a professional athlete: ironically, professional sportspeople under the special sports employment rules are now excluded.

Since 2023, your spouse and children under 25 (or children of any age with a disability) can also opt in, provided they move with you or later, and each meets their own conditions. Each family member files separately, after the main taxpayer.

Self-employed freelancers (autónomos) who simply move to Spain and invoice clients do not automatically qualify. The entrepreneur and professional routes have specific requirements, usually linked to an approved innovative project or work for a certified start-up. Get advice before assuming you fit.

How long it lasts

The regime covers the tax year in which you become Spanish tax resident plus the following five tax years, so up to six years in total. If you arrive late in the year and are not resident for that first year, you lose part of that window, which is why the timing of your move matters.

You can renounce the regime, and you can be excluded if you stop meeting the conditions. After it ends, you are taxed like any other resident on your worldwide income.

How to apply: Modelo 149 and the six-month deadline

The regime is never applied automatically. You have to opt in with Modelo 149, filed online with the Agencia Tributaria. The steps are roughly:

1. Get your NIE and make sure you are registered in the tax census (if you are not, a census declaration comes first).
2. Start work and be registered with Spanish Social Security (alta), or, for remote workers and other routes, have the relevant start date documented.
3. Upload the supporting documents electronically first (for example your contract, employer certificate or proof of the remote work arrangement). You receive a registration number.
4. File Modelo 149 with that registration number, generally within six months of the start of your activity as shown in your Social Security registration.
5. Keep the Tax Agency’s acknowledgement. Your employer can then withhold at the regime rate, and you can request a certificate confirming you are on the regime.

The deadline is strict. Filing late usually means you cannot use the regime at all, even if you meet every other condition. This is the single most common reason people miss out.

Each year after that, you file Modelo 151 instead of the normal income tax return (Modelo 100), during the usual spring tax campaign.

Other taxes and reporting while on the regime

• Modelo 720: according to the Tax Agency’s own FAQ, taxpayers on this regime do not have to file the informative return on assets abroad. Family members who are not on the regime may still have to. See our guide to Modelo 720.
• Wealth tax: you are generally only taxed on assets located in Spain, not your worldwide assets.
• Double tax treaties: because you are taxed like a non-resident, some treaty benefits and Spanish tax residence certificates work differently. Check this if you have income in another country.
• Social Security, IBI and VAT: the regime only affects income tax. You still pay Social Security contributions, local property tax and everything else. Our overview of the Spanish tax system covers the rest.

When the Beckham law is not worth it

A flat 24% sounds attractive, but it is not always cheaper. You lose most personal and family allowances and deductions that ordinary residents get, and the flat rate applies from the first euro. On a modest salary, the normal progressive scale with its allowances can work out lower. The regime tends to pay off for higher earners and for people with substantial investment income abroad.

Joint filing with a spouse is also not possible under the regime. Ask a tax adviser to run both scenarios with your real figures before you file Modelo 149, ideally before you sign your contract or decide your arrival date.

Useful links

• Agencia Tributaria: Modelo 149 (opting in to the special regime)
• Agencia Tributaria: Modelo 151 instructions (rates and rules)
• Spain’s digital nomad visa in 2026
• Work visas and permits in Spain
• Understanding the tax system in Spain

FAQ: the Beckham law

Disclaimer: This article is general information only and is not legal or tax advice. The rules of the special regime are detailed and depend on your personal situation – always check with the Agencia Tributaria and ask a gestor, tax adviser or lawyer before you apply.

Updated: October 2026

Once you become tax resident in Spain, you may have to tell the Spanish Tax Agency about bank accounts, investments and property you still hold in your home country. This is done on Modelo 720, an information return that worries many newcomers because of its once-notorious fines. This guide explains who has to file, the thresholds, the deadline and what has changed since the penalty regime was struck down.

What Modelo 720 is (and what it is not)

Modelo 720 is a declaración informativa: you report what you own abroad, but you pay no tax with it. The income those assets produce (interest, dividends, rent, gains) is declared separately on your annual income tax return, as for any Spanish resident taxed on worldwide income. If you are unsure about that side, start with our overview of the Spanish tax system.

The form is filed online through the Agencia Tributaria’s electronic office, using a digital certificate, Cl@ve or similar. Many residents ask a gestor or tax adviser to prepare it the first time.

Who has to file

The obligation applies to Spanish tax residents, including individuals and companies. Non-residents who only own a holiday home in Spain do not file it. You are usually tax resident if you spend more than 183 days a year in Spain or your main economic interests are here.

You must report not only assets you own outright, but also accounts on which you are an authorised signatory, a beneficiary or the beneficial owner. If an asset is jointly owned, each resident co-owner reports it: for bank accounts you give the full balance, not split, together with your ownership percentage.

One notable exception: people taxed under the special regime for new residents (the Beckham law) do not have to file, according to the Tax Agency’s own FAQ. Family members who are not on that regime are not covered by the exception.

The three blocks and the €50,000 thresholds

Assets abroad are split into three blocks. You only have to file for a block when its combined value is more than €50,000.

Each block is measured on its own. A person with €60,000 in a foreign savings account and €30,000 in foreign shares only reports the accounts block. Amounts in other currencies are converted at the exchange rate on 31 December.

Deadline and later years

Modelo 720 is filed between 1 January and 31 March for the situation on 31 December of the previous year. Assets held at the end of 2025 were reported by 31 March 2026, and assets held at the end of 2026 must be reported between 1 January and 31 March 2027.

You do not have to file every year. After your first Modelo 720, you file again only if:

• the value of a block you already declared has risen by more than €20,000 compared with your last return, or
• a block crosses the €50,000 threshold for the first time, or
• you have closed, sold or stopped holding an asset you declared before (this must be reported even if values fell).

Crypto goes on Modelo 721

Cryptocurrencies held with providers abroad are not included in Modelo 720. Since the 2023 tax year they go on a separate return, Modelo 721, which also uses a €50,000 threshold and the same January–March filing window. Crypto held on a Spanish platform or in your own private wallet follows different rules, so check with an adviser.

Penalties after the 2022 EU ruling

Modelo 720 used to carry some of the harshest penalties in Europe: fixed fines per missing item, a 150% penalty and the rule that undeclared assets could be taxed as unjustified income with no time limit. On 27 January 2022, the Court of Justice of the European Union (case C-788/19) ruled that this system breached EU law because it was disproportionate.

Spain then passed Law 5/2022, which removed the special penalty regime. Since then, late or incorrect Modelo 720 returns fall under the general penalty rules of the Spanish tax code, which are much lower. That does not mean the form can be ignored: the Tax Agency receives a lot of data from foreign banks through automatic exchange of information, and penalties for missing information returns still apply.

If you realise you should have filed in earlier years, filing late on your own initiative, before the Tax Agency contacts you, usually leads to lower penalties. Our guide to tax audits and inspections explains what happens if they do.

Practical checklist for your first Modelo 720

1. List every account, investment, insurance policy and property you hold abroad, including ones you are only authorised on.
2. Ask each foreign bank or broker for a statement showing the 31 December balance and, for accounts, the fourth-quarter average.
3. Find the purchase deeds or documents for any foreign property.
4. Convert all amounts to euros at the 31 December exchange rate and add them up per block.
5. If any block is over €50,000, file between 1 January and 31 March, and keep a copy of your return as the baseline for the €20,000 rule.

Useful links

• Agencia Tributaria: Form 720 (assets and rights abroad)
• Agencia Tributaria: Modelo 720 FAQ (PDF, Spanish)
• Garrigues: the law that removed the Modelo 720 penalty regime (Spanish)
• Taxes for foreign property owners in Spain
• Investment strategies for expats in Spain

FAQ: Modelo 720

Disclaimer: This article is general information only and is not legal or tax advice. Reporting rules and thresholds can change – always check with the Agencia Tributaria and ask a gestor, tax adviser or lawyer about your own situation.