Inheritance and gift tax in Spain

It is for anyone considering, planning or going through a move to Spain, whether you are inheriting, receiving a gift or planning your own estate.

Start with "How Spanish inheritance and gift tax works". It shows how the tax is calculated, how family relationship affects it and who has to pay. Then read the pages that match your situation: regional differences, non-resident heirs, deadlines, gifts, or double taxation.

Key rules

• Home reduction: The state reduction is 95% of the value of the deceased's habitual home, capped at 122,606.47 euros per heir, and the home must be kept for 10 years.
• Gift filing: Gift tax must be filed within 30 working days of the date of the gift.
• Inheritance filing: Inheritance tax must be filed and paid within six months of the date of death.
• Extension: An extension of six more months must be requested in writing within the first five months after death.
• Who pays: Each heir pays separately on what they personally receive.
• Region: Regional rules can change reductions, tariff and multipliers, so the result can differ a lot from the state figures.

Inheritance and gift tax in Spain: the whole process, step by step

• Gift: file the gift tax return (read: Gift tax on money or property given to family in Spain): within 30 working days of the date of the gift

• Inheritance: note the date of death, which starts every clock (read: Filing and paying Spanish inheritance tax on time): on the day of death; the count starts the day after

• Work out the taxable base and your reductions (read: How Spanish inheritance and gift tax works): in the first weeks after death, before you file

• Check which region's rules and allowances apply (read: How inheritance tax differs between Spanish regions): before you file

• If you or the deceased live abroad, check which rules apply (read: Inheritance tax when the heir or the deceased lives outside Spain): before you file

• Ask for a six-month extension in writing if you need more time: within the first five months after death; if not refused within a month, it is granted

• File and pay inheritance tax: within six months of the date of death

• File plusvalía municipal (the town-hall tax on land value) if you inherit urban property (read: Municipal land value tax on inherited property): within six months of death; an extension of up to six more months must be requested within the first six months

• If you filed late, pay the surcharge: 1% per full month of delay for up to 12 months, then 15% plus interest

Documents you may need

Identity and residence

• Your parent's ID or passport — Receiving a gift from parents abroad: tax and bank checks

Income and work

• Gift tax return — Gift tax on money or property given to family in Spain
• Your parent's bank statements showing where the funds came — Receiving a gift from parents abroad: tax and bank checks
• Your filed gift tax form — Receiving a gift from parents abroad: tax and bank checks
• Proof the foreign tax was paid — Avoiding double inheritance tax between Spain and your home country
• Documents valuing the foreign assets and showing which assets were taxed abroad — Avoiding double inheritance tax between Spain and your home country
• Proof that your parent has filed any tax due on the money — Receiving a gift from parents abroad: tax and bank checks

Translations and legal papers

• Public deed of gift signed before a notary — Gift tax on money or property given to family in Spain
• Sworn translations of those foreign documents — Avoiding double inheritance tax between Spain and your home country
• Sworn translation of any of these documents that are not in Spanish — Receiving a gift from parents abroad: tax and bank checks

Other documents

• Gift letter or gift deed — Receiving a gift from parents abroad: tax and bank checks
• Proof of the underlying source of the money — Receiving a gift from parents abroad: tax and bank checks

Each article lists the other documents it asks for, where you need them.

Inheritance and gift tax in Spain: questions that cross several articles

Does the 95% home reduction apply to any inherited home?

No, the 95% state reduction only applies to the deceased's habitual home, up to 122,606.47 euros per heir, and you must keep the home for 10 years. It covers spouses, ascendants, descendants and some relatives aged 65 or older who lived with the deceased. Many regions improve it, so read How Spanish inheritance and gift tax works and How inheritance tax differs between Spanish regions.

How much tax will I actually pay on an inheritance?

The tax comes from the net value you receive, minus your reductions, run through a scale from 7.65% to 34%. That result is then multiplied by a coefficient based on your existing wealth and your kinship group. Read How Spanish inheritance and gift tax works for the steps and How inheritance tax differs between Spanish regions, since many regions replace the state figures.

Is a gift from a relative abroad taxed in Spain?

Yes, if you live in Spain you pay Spanish gift tax on gifts from anywhere, whatever the donor's residence. File within 30 working days of the gift, normally with your region of residence. Tax paid abroad on the same gift may give a credit, so read Receiving a gift from parents abroad: tax and bank checks and Avoiding double inheritance tax between Spain and your home country.

Do inheritance tax and plusvalía have the same deadline?

Both start from the date of death and both have six months to file, but they go to different offices. Inheritance tax goes to the regional tax office, while plusvalía goes to the town hall where the property sits. Read Filing and paying Spanish inheritance tax on time and Municipal land value tax (plusvalía municipal) on inherited property.