Inheritance Tax in Spain for Non-Residents: Regional Differences Explained

General Spanish Inheritance Tax Rules for Non-Residents

1) Who must pay inheritance tax?

If you are not a tax resident in Spain but inherit assets located in Spain such as a holiday property, a Spanish bank account or shares in Spanish entities, you are required to pay Spanish inheritance tax, regardless of your country of residence.

• Non-residents are only liable for assets located in Spain (territorial principle).
• The inheritance tax is paid by the heirs, not by the estate itself.

2) Deadline and procedure

• The inheritance tax return must, in principle, be filed within 6 months from the date of death.
• In certain cases, a 6-month extension may be requested.

3) National tax rates

Spain applies progressive national tax rates that can reach approximately 34%. These rates form the basic framework; in practice, the final tax due is often significantly lower due to regional reductions and allowances.

Source: Ley 29/1987 del Impuesto sobre Sucesiones y Donaciones.

At national level, general tax-free allowances per heir also apply. For spouses, parents and adult children, the basic allowance is approximately €15,957. For heirs in Group III, the allowance is approximately €7,993. However, these national allowances are only the starting point. In practice, it is mainly the regional regulations that determine the final tax burden.

4) Groups of heirs

• Group I: children under 21 years old
• Group II: children over 21, spouse or partner and parents
• Group III: siblings, aunts, uncles, nieces and nephews
• Group IV: other individuals

Following a ruling of the Court of Justice of the European Union (2015), non-residents are entitled to the same regional reductions and benefits as residents.

Regional overview of inheritance tax

Costa Blanca — Comunidad Valenciana

Very favourable inheritance tax treatment for close family members (Groups I and II). Key features:

• An allowance of €100,000 per heir for direct heirs (children, spouse or partner and parents).
• A reduction of up to 99% on the calculated inheritance tax above this threshold.
• Additional benefits may apply for heirs under 21.

In practice, a non-resident inheriting a property in Costa Blanca usually pays only a very limited amount of inheritance tax when it concerns direct family.

The final tax burden depends on the value of the inherited assets and the degree of kinship, but in many family situations the effective inheritance tax is very limited.

For more distant heirs, benefits still exist, although they are more limited than for close relatives.

Costa Cálida — Region of Murcia

The Region of Murcia is known for applying a 99% reduction for direct heirs (spouse, children and parents).

In practice, inheritance tax is often almost negligible for close family members.

For heirs outside the immediate family (Groups III and IV), reductions are lower, although the system remains more favourable than the national baseline regime.

Costa de Almería & Costa del Sol — Andalusia

In Andalusia, the following applies for direct heirs:

• An allowance of up to €1,000,000 per heir.
• Above that amount, a 99% reduction on the calculated tax.

This means that, in practice, inheritance tax between close family members is virtually non-existent, even at higher property values. The high allowance per heir allows substantial assets to be transferred largely tax-free.

Registered partners (parejas de hecho) are generally treated similarly to married couples, although regional differences may apply.

Tenerife — Canary Islands

The Canary Islands apply a 99.9% reduction for direct heirs.

In practice, inheritance tax is therefore almost non-existent for close family members.

Formal allowances (such as €18,500 for children and €40,400 for the surviving spouse) still exist but are effectively neutralised by this regime.

Thanks to the combination of allowances and the very high regional reduction, the effective tax burden is usually negligible.

Mallorca & Ibiza — Balearic Islands

The Balearic Islands apply a 100% exemption for direct heirs.

For other heirs, a reduction of approximately 60% or more applies, depending on the degree of kinship and the value of the inheritance.

Double taxation & Belgium / Netherlands

When a non-resident inherits Spanish real estate, Spanish inheritance tax is due on the assets located in Spain. In the country of residence, there may also be an obligation to declare the worldwide estate.

Spain does not have a specific double taxation treaty for inheritance tax with Belgium or the Netherlands.

However, both countries provide domestic mechanisms to avoid or mitigate double taxation on foreign real estate through tax credit or offset systems.

In the case of the Netherlands, the so-called 10-year rule may apply, under which the Netherlands may continue to levy inheritance tax under certain conditions after emigration. The concrete application always depends on national legislation and the individual situation.

Summary per region

The table below provides a simplified overview of the regional regimes and does not constitute a ranking.