Inheritance Tax in Spain for Non-Residents: Regional Differences Explained

General Spanish inheritance tax rules for non-residents

1) Who is required to pay inheritance tax?

If you are not a tax resident in Spain but inherit assets located in Spain — such as a holiday home, a Spanish bank account or shares in Spanish entities — you are required to pay inheritance tax in Spain, regardless of your country of residence.

• Non-residents are only taxed on assets located in Spain (situs principle).
• Inheritance tax is paid by the heirs, not by the estate itself.

2) Deadlines and procedure

• The inheritance tax return must generally be filed within 6 months of the date of death.
• In certain cases, an additional 6-month extension may be requested.

3) National tax rates

Spain applies progressive inheritance tax rates at national level, which can rise to approximately 34%. These rates form the basis for the calculation, although the final tax due is often significantly lower thanks to regional exemptions and reductions.

Source: Ley 29/1987 del Impuesto sobre Sucesiones y Donaciones.

4) Groups of heirs

• Group I: children under 21 years of age
• Group II: children aged 21 or over, spouse or partner, and parents
• Group III: siblings, uncles, aunts, nephews and nieces
• Group IV: other persons without a family relationship

Since a ruling of the Court of Justice of the European Union (2015), non-residents are entitled to the same regional reductions and allowances as Spanish residents.

Regional overview of inheritance tax

Costa Blanca — Valencian Community

Inheritance tax is very favourable for direct heirs (groups I and II). Key features include:

• An exemption of €100,000 per heir for direct heirs (children, spouse or partner, and parents).
• A reduction of up to 99% on the calculated inheritance tax above this exemption.
• Additional advantages apply to heirs under the age of 21.

As a result, a non-resident inheriting a property on the Costa Blanca will generally pay only a very limited amount of inheritance tax in practice when the heirs are direct family members.

For more distant heirs, such as siblings or unrelated persons, the advantages remain significant, although more limited than in some other regions.

Costa Cálida — Region of Murcia

The Region of Murcia is known for applying a 99% reduction for direct heirs (spouse, children and parents).

In practice, this means that inheritance tax often exists only in name and is virtually negligible for direct family members.

Costa de Almería & Costa del Sol — Andalusia

In Andalusia, the following applies to direct heirs:

• An exemption of up to €1,000,000 per heir.
• Above this amount, a 99% reduction on the calculated inheritance tax.

This means that, in practice, virtually no inheritance tax is payable between direct family members, even for higher-value estates.

Registered partners (parejas de hecho) are often treated in the same way as spouses for inheritance tax purposes, although regional differences may apply.

Tenerife — Canary Islands

The Canary Islands apply a 99.9% reduction for direct heirs.

In practice, this means that inheritance tax is effectively almost non-existent for direct family members.

Formal allowances (such as €18,500 for children and €40,400 for the surviving spouse) still exist, but are largely neutralised by this regime.

Mallorca — Balearic Islands

The Balearic Islands apply a very favourable regime for direct heirs, with a 100% exemption.

For other heirs, such as siblings, reductions of approximately 60% or more may apply, depending on the situation.

Summary by region

The table below provides a simplified overview of the regional regimes and does not constitute a ranking. The actual impact always depends on the family situation and the value of the estate.

Practical tips

• Making a Spanish will can simplify the procedure.
• Each heir must have a NIE number.
• Regional regulations change regularly; professional guidance is recommended.