taxes

What inheritance tax applies to property in Spain?

Spanish inheritance tax (Impuesto sobre Sucesiones y Donaciones) applies when property in Spain is inherited, regardless of whether the owner or beneficiary is resident.

Rates and allowances vary significantly by autonomous community.

In the Valencian Community, close relatives (spouse, children) benefit from substantial reductions — up to 99% reduction for inheritances under certain thresholds.

Non-EU heirs and distant relatives may face higher effective rates.

The base rates range from 7.65% to 34%, with multipliers based on the relationship to the deceased and the heir's existing wealth.

EU residents benefit from a 2015 ruling allowing them to apply the more favorable regional rules.

Key planning strategies include: making a Spanish will covering your Spanish assets, considering ownership structures (joint, company), and understanding how your home country's inheritance laws interact with Spanish law.

EU Regulation 650/2012 allows you to choose your national law to govern succession.

WOW-Estates advises all buyers to create a Spanish will alongside their purchase.