Note: This article reflects 2026 rules and is undergoing final review by María Luisa de Castro (ICA Cádiz nº 2745). Specific figures and thresholds should be confirmed for your case — book a consultation or email marialuisa@costaluzlawyers.es.
Spanish inheritance tax (Impuesto sobre Sucesiones y Donaciones, ISD) is levied on the heir, not the estate, and varies dramatically by autonomous community. Non-resident heirs of Spanish-located assets are taxed under state rules, with relief rights established by EU case law. Foreign wills may or may not be enforceable — advance planning avoids surprises.
Last updated: April 2026. Any figure marked <<CLIENT-CONFIRM>> is pending BOE / AEAT verification before publication.
Side-by-side comparison
| Criterion | Option 1 | Option 2 |
|---|---|---|
| Who pays | The heir (not the estate) | Progressive scale on inherited value |
| Applicable law | Autonomous community of the deceased's habitual residence (if in Spain), OR state rules (if non-resident) | ECJ Case C-127/12: non-residents can claim regional bonifications |
| State tax-free threshold per Group I/II heir | <<CLIENT-CONFIRM: 2026 Group I/II allowance>> | Varies by group |
| Group I/II inheritance | Spouse + direct descendants | Most bonified |
| Group III | Siblings, uncles, nephews | Lower bonifications |
| Group IV | Unrelated / distant kin | Surcharge applies |
| Foreign will — recognised? | Yes if EU Regulation 650/2012 applies and the will is valid under applicable national law | Grant of probate process required |
Next step
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The value declared here is not only an inheritance tax question. It becomes the acquisition value against which any future sale is taxed, so the two decisions are really one. how the declared value affects a later sale
Frequently asked questions
Which autonomous community applies to my inheritance?
Generally the one where the deceased had habitual residence in the 5 years prior to death. If they were non-resident, state rules apply — but ECJ case law gives non-residents the right to claim the regional bonifications their closest-connection AC would provide.
Is there a better AC to die in for inheritance-tax purposes?
Madrid, Andalucía, and a few others bonify heavily for spouses + direct descendants. Moving habitual residence for tax purposes requires real substance and lead time.
Does a UK will cover Spanish assets?
Under EU Regulation 650/2012 (Brussels IV), a UK will can govern Spanish assets if it elects UK law. But probate in Spain is easier with a Spanish will for Spanish assets.
Is there a gift tax I can use to reduce inheritance exposure?
Yes — the same ISD covers both inheritance and gifts. Lifetime gifting strategies exist but require careful structuring to avoid future-inheritance aggregation rules.
What does Costaluz charge for a Spanish inheritance matter?
Flat fee per mandate (planning or probate). Email marialuisa@costaluzlawyers.es.
This article provides general guidance only and does not constitute legal advice. For personalised advice tailored to your specific situation, please book a consultation with our team.
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Client line (EN/ES): +34 919 499 342 · marialuisa@costaluzlawyers.es · Costaluz Lawyers — María Luisa de Castro, ICA Cádiz nº 2745.
This content has been prepared with the assistance of artificial intelligence and reviewed by María Luisa de Castro, a lawyer specialising in Real Estate Law and founder of CostaLuz Lawyers.
The information provided is general and indicative in nature. It should not be used as the sole basis for making professional, legal or investment decisions, and CostaLuz Lawyers assumes no responsibility for decisions taken solely on the basis of this content.
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