How inheritance tax differs between Spanish regions

Key rules

• Deciding region: The region where the deceased lived most days in the five years before death sets the rules, not your own region.
• Close family: Madrid, Andalucía and Valencia give a 99% bonus to spouses, children and parents, so the tax is almost nil.
• Catalonia: Catalonia is the heaviest of the five main regions compared here.
• Non-residents: For property in Spain owned by a non-resident, the region where the property sits applies.

Regional figures change with each regional budget law, so confirm current amounts with the relevant regional tax office before acting.

The region can change the bill from almost nothing to a lot

Spain's inheritance tax is a national tax, but regions can replace the national reductions with their own and add bonuses. The same estate can therefore cost almost nothing or a lot, depending on which region applies. Find out which region applies before you estimate any tax.

Which region's rules apply

The region where the deceased lived decides, not the region where you live. "Lived" means habitual residence: the region where they spent the most days in the five years before death.

If the deceased was not a resident of Spain, the rules are less simple. For property in Spain owned by a non-resident, the region where the property sits applies. Courts have extended regional rules to cases involving countries outside the EU and EEA, so the state rules are not always the only option. If the deceased lived abroad, ask a Spanish tax adviser or the tax office of the region where the property is which rules apply.

The decision block below walks you through the choice.

How five main regions compare

• Madrid, Andalucía and Valencia: a bonus of 99% of the tax for close family (spouse, children, parents). This makes the tax almost nil. Andalucía also removes the tax up to a large threshold.
• Galicia: a reduction of 1,000,000 euros for spouses, children and parents.
• Catalonia: its own tax scale, with large reductions for children and spouses. It is the heaviest of the five.

Figures differ by region and change with each regional budget law. Confirm the current amounts with the regional tax office before you rely on them. The comparison below sets the regions side by side.

What to do

1. Work out where the deceased had their habitual residence.
2. Check that region's current reductions and bonuses for your relationship to the deceased.
3. If the deceased lived outside Spain, get advice on which rules apply before you file.

Choosing between options

Which region's inheritance tax rules apply to your inheritance?

• The region where the deceased lived: The deceased lived in Spain. The region where they spent the most days in the five years before death applies, whatever the heir's residence.

• The region where the property is: The heir is not resident in Spain and inherits real estate in Spain. The property's location sets the rules.

• The heir's region or the state rules: The deceased lived outside Spain. Which applies depends on the case, so ask a tax adviser before you file.

Start with where the deceased spent most days in the last five years. Only if they lived abroad, or you are not a Spanish resident inheriting property, look at the other options.

Inheritance tax in Madrid, Andalucía, Catalonia, Valencia and Galicia compared

Side by side

Madrid, Andalucía and Valencia cut the tax for close family to almost nothing. Galicia gives a large reduction. Catalonia is the heaviest of the five.

How to use this

• Groups I and II cover close family such as spouses, children and parents. More distant relatives and people with no family link get far smaller reliefs, so the table does not apply to them.
• Which region's rules apply depends on your situation. Find out before you rely on a column.
• Each region sets its own figures and changes them through its yearly budget law. Before you act, check the current allowances and bonuses with the regional tax office of the region that applies.

Frequently asked questions

Does my own region of residence decide which inheritance tax rules apply?

No, your own region does not decide it when the person who died lived in Spain. The region where the deceased spent the most days in the five years before death sets the rules. If you live in Madrid but the deceased lived in Catalonia, Catalan rules apply.

Which region's rules apply if the deceased lived outside Spain?

It depends on the case, but a property in Spain can still be taxed under the rules of the region where it sits. Where the deceased lived abroad, the heir's region or the state rules may apply. Court rulings since 2018 have extended regional rules to non-EU/EEA cases, so ask a tax adviser before filing.

How big is the tax gap between Madrid, Andalucía, Valencia, Galicia and Catalonia?

The gap is large for children and spouses. Madrid, Andalucía and Valencia give a 99% bonus on the tax for close relatives, which leaves almost nothing to pay. Galicia gives a 1,000,000 euro reduction to spouses, children and parents, and Catalonia is the heaviest of the five.