Avoiding double inheritance tax between Spain and your home country

Key rules

• Treaties: Only France, Greece and Sweden have inheritance or gift tax treaties with Spain; the UK and US do not.
• Credit limit: The credit is the lower of the foreign tax paid and the Spanish tax due on the same assets.
• No refund: The credit can cut your Spanish tax to zero but never produces a refund.
• Proof: You need evidence the foreign tax was actually paid, plus sworn translations where needed.

Treaties rarely help

Spain has very few treaties on inheritance and gift tax. The ones in force are with France, Greece and Sweden. The Swedish one is old and limited. If your home country is the UK or the US, no treaty applies to you.

For most people, relief comes from a Spanish credit for foreign tax paid. It needs evidence and has limits, explained below.

The EU succession regulation does not solve this. It decides which country's law governs the estate. It does not decide who collects tax.

How the credit works

If you are taxed in Spain on assets abroad, you can deduct the lower of two amounts:

• the foreign inheritance or gift tax you actually paid on those assets, and
• the Spanish tax that would be due on those same assets.

Three conditions apply:

• The foreign tax must be similar to Spanish inheritance or gift tax.
• It must have been paid, not just assessed.
• The credit can reduce your Spanish bill to zero but never gives a refund.

Value the foreign assets under Spanish rules before you compare the two amounts. Your foreign valuation may differ from the Spanish one, and the Spanish value is the one that counts.

Keep your proof

Spain's tax office can ask for evidence when it checks your return. Keep proof that the foreign tax was paid, and documents showing which assets were taxed abroad and what they are worth. The documents list below has the full set. Ask the foreign tax authority for a payment certificate early, as it can take time. Foreign documents not in Spanish may need sworn translations.

What to do

1. Check whether your home country is France, Greece or Sweden. If so, look at the treaty terms for your case.
2. If not, plan to use the Spanish credit.
3. Gather the proof while the foreign file is still open.
4. Work out the credit using the steps in the checklist below.

Documents you need

• Proof the foreign tax was paid: the foreign tax assessment, the return or the payment receipt.

• A certificate from the foreign tax authority confirming the tax paid, as an alternative or addition to the assessment or receipt.

• Sworn translations of those foreign documents, where they are not in Spanish.

• Documents valuing the foreign assets and showing which assets were taxed abroad.

Checklist

• Check whether your home country is France, Greece or Sweden, the only countries with an inheritance or gift tax treaty with Spain.

• If you are in the UK or US, plan to use the Spanish credit for foreign tax paid, as no treaty applies.

• Confirm the foreign tax is similar to Spanish inheritance or gift tax and has actually been paid.

• Work out the credit as the lower of the foreign tax paid and the Spanish tax due on those same assets.

• Ask the foreign tax authority for a payment certificate, and keep the assessment, return or receipt.

• Get sworn translations of foreign documents where needed and keep them with the asset valuations.

Frequently asked questions

Which countries have an inheritance or gift tax treaty with Spain?

Spain has inheritance and gift tax treaties in force with France, Greece and Sweden only. The Sweden treaty is old and limited. The UK and the US have no such treaty with Spain, so relief there comes only from the Spanish credit for foreign tax paid.

Does the EU succession regulation stop me paying tax twice?

No, the EU succession regulation does not prevent double tax, because it only decides which country's law applies to the estate. It does not deal with tax. You still need the Spanish credit for foreign tax paid, or a treaty if one applies.

Can the foreign tax credit give me a refund from Spain?

No, the credit cannot create a refund. It only reduces the Spanish tax due on the foreign assets, up to the lower of the foreign tax actually paid and the Spanish tax on those assets. The foreign tax must be similar in nature and already paid.

What proof do I need to keep to claim the foreign tax credit?

You need proof that the foreign tax was paid, such as the foreign tax assessment, return, payment receipt or a certificate from the foreign tax authority. Keep sworn translations where needed, plus papers valuing the foreign assets. Spain's tax office can ask for them in an audit.