Inheritance tax
Inheritance tax in Spain when you or the deceased live abroad
In Spain the inheritance tax is paid by each heir, not by the estate. What counts is where you live and where the deceased lived, not your nationality. If you live abroad, you pay in Spain only for what is in Spain, and you can use the allowances of the Spanish region involved: in Madrid, for example, 99% for children and spouses. They have to be claimed when filing, within the deadline.
Saúl Rosell Manglano · Inheritance in Spain · Madrid · ICAM 83.198
Only Spain
If you live abroad, you pay Spanish inheritance tax only on assets located in Spain, such as a flat or an account at a Spanish bank.
99%
Allowance for the spouse, children, grandchildren, parents and grandparents in Madrid, also if they live abroad. Andalusia, the Valencia region and the Balearics have large ones too.
6 months
To file, from the date of death. An extension of six more months can be requested within the first five.
The law of another country, always with a lawyer from there
I am a Spanish lawyer and I advise on Spanish law, including the European rules that Spain applies to inheritances. When part of the case depends on the law of another country, for example because the deceased chose it in their will, or because there are assets or taxes there, I do not advise on that law on my own: I work together with a lawyer from that country, yours if you already have one. Before we start, I tell you who that lawyer is and what each of us will do.
Who pays, and on what
Each heir pays for what they receive.
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If you live in Spain, you pay Spanish inheritance tax on everything you inherit, wherever it is: a house in Portugal, an account in Switzerland or a retirement account in the United States. The exception is a tax treaty, such as the one with France.
If you live abroad, you pay in Spain only for what is in Spain, for example a flat or an account at a Spanish bank. If the flat had a mortgage taken out to buy it, what is still owed can be deducted.
Nationality does not count: a Spaniard living in London inherits as a non-resident, and a Briton living in Madrid as a resident.
Where it is filed, and the regional allowances
If you or the deceased lived abroad, the tax is normally filed with the State Tax Agency, not with the region. The Basque Country and Navarre have their own tax authorities and rules that can change this.
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Even so, you can apply the reductions and allowances of the region where the deceased lived, also if you live outside the EU. If the deceased lived abroad, those of the region where most of their Spanish assets, by value, are located. If you choose a region's rules, all of them apply, not just the ones that suit you.
Those rules are chosen when filing. If you file under the general State rules and the deadline passes, the tax office does not let you change afterwards, and if the deceased lived in Madrid the difference can be a lot of money.
Some regions have reserved their allowances for residents in Spain: the Balearics did so until 24 July 2025.
Madrid, Andalusia, the Valencia region and the Balearics
Madrid: the spouse, children, grandchildren, parents and grandparents have a 99% allowance on the tax, also if they live abroad.
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Andalusia: the same relatives have a reduction of 1,000,000 euros each and a 99% allowance on what remains, also if they live abroad.
Valencia region: a 99% allowance for the same relatives for deaths since 28 May 2023, also if they live abroad. It only covers what is declared: an asset that turns up later keeps it only if you declare it before the tax office asks.
Balearics: since July 2023, a 100% allowance for the same relatives, although the tax must still be filed. If they live abroad, for deaths since 25 July 2025; before that, the Balearic law reserved it to residents in Spain, and if it was refused to you for that reason there are arguments to claim it.
Each allowance has its own conditions. I tell you which ones you meet.
Deadline, extension and filing late
Six months from the death, whether or not the heirs have accepted. An extension of six more months, with interest, can be requested only within the first five months; if you or the deceased lived abroad, from the State Tax Agency.
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Foreign documents go with an apostille and a sworn translation where required, and if you live outside the EU you normally have to appoint someone resident in Spain to represent you before the tax office.
Filing late on your own initiative, before the tax office contacts you, costs a surcharge of 1% plus another 1% for each full month of delay, with no penalty; after twelve months, 15% plus interest. If you wait until the tax office contacts you, there is interest and possibly a penalty.
Paying twice in two countries
If you live in Spain and paid a similar tax in another country on what you inherited there, you can deduct it from the Spanish tax, up to what Spain charges on those assets. It has to be an inheritance tax or similar.
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Spain has inheritance tax treaties only with France, Greece and Sweden. Treaties on income tax do not apply to this tax.
If you live abroad, Spain does not deduct what you pay in your country: that depends on your country's rules. Your country may also tax the inheritance under its own rules. I do not advise on that part on my own: it is reviewed by a lawyer or tax adviser from there.
Selling the inherited home as a non-resident
You pay non-resident income tax at 19% on the gain: the sale price less what the home cost you.
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The cost is the value given to the home in the inheritance tax, not above its market value, plus the notary, the registry and the part of the inheritance tax that corresponded to it. If you sell soon after inheriting and at a similar price, the gain is usually small.
The buyer withholds 3% of the price and pays it to the tax office within a month. You then file your own return: if you owed less, the difference is refunded, and if more, you pay the rest.
The municipal tax on the increase in land value, when the seller does not live in Spain, is paid by the buyer on the seller's behalf. That is why it is usually deducted from the price, and it should be written into the contract.
While the home is yours and you do not rent it out, as a non-resident you pay an annual tax for owning it, even if it gives you no income.
How we will understand each other
I work in Spanish. With clients abroad I use translation tools to read and answer messages, and we manage well that way. The documents Spain needs from your country go with a sworn translation where required, and I tell you which ones before you ask for them. If you write to me in English, I will answer you.
Common questions
I live abroad and have inherited a flat in Spain. What do I pay?
The Spanish inheritance tax on the flat and on anything else you inherit that is in Spain, filed within six months of the death, normally with the State Tax Agency. You can apply the allowances of the region where the deceased lived or, if they lived abroad, of the region where most of their Spanish assets are. In Madrid, for example, children and spouses have a 99% allowance. As the flat is urban property, the municipal tax on the increase in land value is normally due as well; if the land has not gained value, it is declared but nothing is paid.
I live in Spain and inherited a house in another country. Do I pay here?
Normally yes. If you live in Spain, you pay Spanish inheritance tax on everything you inherit, including what is abroad, and you can deduct what you paid in the other country for a similar tax, up to a limit. The exception is the countries with a treaty, which are only France, Greece and Sweden: with France, for example, if the deceased lived in Spain or in France, a house in France is taxed only there.
Which form is used?
Form 650, the self-assessment of the inheritance tax. Each heir declares what they receive and calculates what they have to pay.
What happens if we file late?
If you file before the tax office contacts you, there is a surcharge of 1% plus another 1% for each full month of delay, without a penalty, and after twelve months 15% plus interest. If you wait until they contact you, interest and possibly a penalty.
Who pays the municipal tax when a non-resident sells?
The buyer pays it on the seller's behalf. That is why it is usually deducted from the price, and it is worth writing it into the contract.
Will my country also tax the inheritance?
It may, under its own rules. If you live abroad, Spain does not deduct what you pay in your country. I do not advise on your country's taxes on my own: that part is reviewed by a lawyer or tax adviser from your country, and before we start I tell you who does what.
An inheritance with something in Spain?
Tell me where the deceased lived, their nationality and what they owned in Spain. I will tell you which law applies and what has to be done here, and send you a written quote, free of charge.
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