Spain · Inheritance and tax
Spain's inheritance tax (Impuesto sobre Sucesiones y Donaciones) is paid by each heir on his or her share, not by the estate. Heirs living in the UK pay only on what they inherit in Spain, such as the home, and since July 2021 may use the regional reliefs, which in six of the seven regions below remove at least 99% of the tax for a spouse or child. If the owner was a long-term UK resident, UK inheritance tax can also apply, with a credit for the Spanish tax.
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See what fits →The heir or legatee is the taxpayer (art. 5, Ley 29/1987). An heir living in Spain is taxed on everything inherited, wherever it is; one living abroad only on assets located in Spain (arts. 6 and 7).
Where the person who died or the heir lived outside Spain, the State tax agency (Agencia Tributaria) handles the tax, and each heir files a self-assessment on form 650. A home is valued at the Catastro's reference value at the date of death, or the declared value if higher (art. 9.3).
Without regional reliefs the State scale runs from 7.65% to 34% (art. 21).
Yes, as the law stands in September 2026. Regional reliefs once required a link with a Spanish region. The EU Court of Justice found against that in case C-127/12 (3 September 2014), and from 2015 Spain opened the regional rules to EU and EEA residents.
The Supreme Court applied the same free-movement reasoning to non-EU residents in judgment 242/2018 of 19 February 2018, and Ley 11/2021 extended the right to every non-resident from 11 July 2021. The Agencia Tributaria's FAQ confirms that residents of third countries may choose State or regional rules.
| Situation | Rules available |
|---|---|
| The person who died lived outside Spain | The region holding the greatest value of the Spanish estate |
| The person who died lived in a Spanish region | That region's rules, including for heirs living in the UK |
Sources conflict here: articles 20.4 and 21.3 of the same law, which predate the change, still send heirs taxed only on Spanish assets to the State reliefs and scale, while the later disposición adicional segunda and the Agencia Tributaria give them the regional choice.
Each region applies two layers: a reduction in the taxable amount, then a percentage off the tax. The table covers spouses and children (Groups I and II) as of September 2026, from each region's own law or tax agency.
| Region | Reduction: spouse or child aged 21+ | Relief on the tax | Regional law |
|---|---|---|---|
| Andalucía | €1,000,000 | 99% | Ley 5/2021, arts 28 and 39 |
| Comunidad Valenciana | €100,000 | 99% | Ley 13/1997, arts 10 and 12 bis |
| Región de Murcia | €15,956.87 (State figure) | 99% | D. Leg. 1/2010, art. 3 |
| Comunidad de Madrid | €16,000 | 99% | D. Leg. 1/2010, arts 21 and 25 |
| Catalonia | €100,000 | Spouse 99%; children on a sliding scale | D. Leg. 1/2024, arts 631-2 and 633-4 |
| Balearic Islands | €25,000 | 100% | D. Leg. 1/2014, arts 21 and 36 |
| Canary Islands | Spouse €40,400; child €23,125 | 99.9% | D. Leg. 1/2009, arts 20 and 24 ter |
Catalonia gives the spouse 99%; for other close heirs the relief shrinks as the inheritance grows, from 60% on the first €100,000 for adult children and from 99% for under-21s. Under-21s get larger reductions in most regions, up to €196,000 in Catalonia.
Balearics: the 100% relief requires any property value in the deed to be no more than the Catastro reference value plus 20%. The Balearic tax agency's guide describes it as for heirs taxed as residents, but article 36 of the law sets no residence condition.
The self-assessment and payment are due within six months of the death. One six-month extension can be requested within the first five months, with late-payment interest from the end of month six (arts. 67 and 68, Real Decreto 1629/1991).
Heirs resident outside the EU and EEA, as UK residents now are, must appoint a representative resident in Spain for this tax. The Agencia Tributaria asks for a certificate from Spain's General Register of Wills, even if negative, the will or declaration of heirs, and each heir's tax number, for most Britons the NIE (how to get one). UK official documents need an apostille and a sworn translation.
The town hall's plusvalía tax on land value is separate: the heir pays it within six months, extendable to a year (arts. 106 and 110, RDL 2/2004).
Since 6 April 2025 UK inheritance tax on overseas assets depends on long-term UK residence, not domicile: ten consecutive years of UK tax residence, or ten of the previous twenty. The status can last up to ten tax years after you leave, or three if you had lived in the UK for 10 to 13 years.
A long-term resident's Spanish home is part of the estate. The tax is 40% above the £325,000 threshold, is paid from the estate rather than by each heir, and a home left to a spouse or civil partner is normally exempt.
The UK has no inheritance tax treaty with Spain; HMRC's unilateral relief credits tax charged abroad on assets located there, up to the UK tax on the same asset.
For deaths since 17 August 2015 the EU Succession Regulation applies in Spain: an estate normally follows the law of the country where the person last lived, unless they chose the law of their nationality (EU e-Justice portal).
The UK government's guidance for Britons in Spain says instead that nationality usually decides, and tells readers to state in the will whether Spanish or UK law applies. It also suggests a Spanish will that does not conflict with a UK one. We report both views without recommending either.
Everything above is information as at September 2026, not advice, and each relief has conditions not listed here. Heirs should confirm their position with an independent Spanish lawyer (abogado) or tax adviser, plus a UK adviser on inheritance tax, well inside the six months.
Still planning? See buying in Spain, retiring to Spain, moving from the UK and Spanish property by region.
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Talk to us about Spain →Yes, if you inherit something located in Spain, such as a home or a Spanish bank account. Each heir pays on his or her share, and a UK-resident heir pays only on Spanish assets, with the right to use the region's reliefs. The self-assessment goes to the Agencia Tributaria within six months of the death.
Six months from the date of death, for filing and payment. A further six months can be requested, but only within the first five, and interest then runs from the end of month six. The council's plusvalía tax on an inherited home has the same six months, which can be stretched to a year.
In principle yes, but the reliefs are large. As of September 2026 a surviving spouse gets 99% off the tax in Andalucía, Valencia, Murcia, Madrid and Catalonia, 99.9% in the Canary Islands and 100% in the Balearics, after a reduction of the taxable amount. A spouse living in the UK can choose those rules.
Yes, if the owner was a long-term UK resident, meaning UK tax resident for at least ten of the previous twenty tax years; this test replaced domicile on 6 April 2025. The home then counts towards the estate, taxed at 40% above £325,000, with a credit for the Spanish tax capped at the UK tax on it.
The UK government suggests Britons in Spain make a Spanish will that does not conflict with their UK will, to spare heirs problems and cost. Under the EU Succession Regulation, which Spain applies, a will can choose the law of your nationality. Whether that suits you is a question for an independent Spanish lawyer.
Last checked 2026-09-28. Rules and rates change; this is general information, not legal, tax or financial advice. Confirm your own position with an independent Spanish lawyer or tax adviser before you act.