Spanish Inheritance Tax Calculator 2026 — Estimate Your IHT Liability

Spanish Inheritance Tax: What You Need to Know Before You Calculate

Spanish inheritance tax — officially the Impuesto sobre Sucesiones y Donaciones (ISD) — is a tax paid by the person who receives an inheritance, not by the estate itself. This is a fundamental difference from the UK system, where inheritance tax is deducted from the estate before distribution. In Spain, each individual beneficiary calculates and pays their own tax liability based on what they personally receive.

The tax applies in two situations. First, if you are tax resident in Spain, you owe Spanish inheritance tax on worldwide assets you inherit — regardless of where those assets are located or where the deceased lived. Second, if you are a non-resident, you owe Spanish inheritance tax on any assets located within Spain that you inherit — most commonly property, bank accounts held in Spanish institutions, and shares in Spanish companies.

Spain operates a progressive rate structure at the state level, with marginal rates climbing from 7.65% on the first tranche to 34% on amounts exceeding approximately €797,000 in taxable base. However, the actual tax you pay depends on several additional factors: your relationship to the deceased (which determines your group allowance and multiplier), the value of your pre-existing wealth (which can increase the tax via a multiplier coefficient), and critically, the autonomous community (region) where the deceased was resident or where the assets are located.

Spain’s 17 autonomous communities have the power to modify inheritance tax rules within their territory. Some regions have introduced near-total exemptions for close family members. Madrid, for example, applies a 99% reduction for Group I and II heirs (spouse, children, parents), meaning close relatives effectively pay almost no inheritance tax. Andalusia exempts inheritances up to €1,000,000 for Group I and II heirs. Other regions like Catalonia, Valencia, and the Balearic Islands offer partial reductions of varying generosity.

This regional variation means that the same inheritance can attract wildly different tax bills depending on where the deceased lived. A British expat dying in Marbella (Andalusia) may leave a largely tax-free inheritance to their children, while the same estate in Catalonia could face a meaningful liability. Understanding which region’s rules apply — and how to structure your affairs accordingly — is essential for anyone with assets in Spain.

The calculator below applies the 2026 state-level brackets from Law 29/1987, the group allowances from Article 20, the pre-existing wealth multiplier table, and the standard regional bonuses for Spain’s major autonomous communities. Use it to estimate your liability, then speak with a specialist to confirm the result for your specific circumstances.

Inheritance Tax Calculator

How Spanish Inheritance Tax Works

Spanish inheritance tax is governed by Law 29/1987 (Ley del Impuesto sobre Sucesiones y Donaciones) and its implementing regulation, Royal Decree 1629/1991. The tax is levied on the beneficiary — every person who receives an inheritance or gift must file and pay individually. This is known as a personal obligation system, in contrast to estate-based systems like the UK’s.

Step 1: Determine the Taxable Base (Base Imponible)

The taxable base is the net value of assets received by each heir. For an inheritance, this means the gross value of assets allocated to the beneficiary, minus any debts and charges attributable to those assets (mortgages, funeral expenses, last-illness costs). Where the deceased owned property, a current market valuation is required — the Spanish tax authorities (Agencia Tributaria) publish reference values for real estate that serve as a minimum.

Step 2: Apply Group Allowances (Reducciones por Parentesco)

Article 20 of Law 29/1987 establishes four kinship groups, each with a different personal allowance deducted from the taxable base before rates are applied:

Group	Relationship	Allowance
I	Children and adopted children under 21	€15,956.87 + €3,990.72 per year under 21 (max €47,858.59)
II	Spouse, children over 21, parents, grandparents	€15,956.87
III	Siblings, aunts, uncles, nephews, nieces, in-laws	€7,993.46
IV	Distant relatives, unrelated persons	€0

Additional allowances exist for disabled heirs (€47,858.59 for disability of 33-65%, and €150,253.03 for disability above 65%), and for life insurance proceeds received by the surviving spouse (up to €9,195.49).

Step 3: Apply Progressive Tax Rates

After deducting the allowance, the remaining taxable base is subject to a progressive rate scale. The state-level brackets, set out in Article 21 of Law 29/1987, range from 7.65% on the first €7,993.46 to 34% on amounts exceeding €797,067.26:

Taxable Base Up To (€)	Marginal Rate
7,993.46	7.65%
15,980.91	8.50%
23,968.36	9.35%
31,955.81	10.20%
39,943.26	11.05%
47,930.72	11.90%
55,918.17	12.75%
63,905.62	13.60%
71,893.07	14.45%
79,880.52	15.30%
119,042.67	16.15%
158,204.82	18.70%
237,327.22	22.25%
397,129.52	25.50%
797,067.26	29.50%
Above 797,067.26	34.00%

Step 4: Pre-Existing Wealth Multiplier (Coeficiente Multiplicador)

The tax calculated from the progressive brackets is then multiplied by a coefficient that depends on both the heir’s kinship group and the value of their pre-existing wealth (patrimonio preexistente). This multiplier increases the tax for wealthier beneficiaries and for those more distantly related to the deceased:

Pre-Existing Wealth (€)	Groups I & II	Group III	Group IV
0 – 402,678.11	1.0000	1.5882	2.0000
402,678.11 – 2,007,380.43	1.0200	1.6196	2.0400
2,007,380.43 – 4,020,770.98	1.0400	1.6510	2.0800
Above 4,020,770.98	1.0600	1.6824	2.1200

Step 5: Regional Competence (Article 32 of Law 29/1987)

Under Spain’s decentralised tax system, each autonomous community has the power to modify IHT rates, allowances, and bonuses within its territory. Article 32 of Law 29/1987 and the broader framework of the Ley de Cesion de Tributos (Law 22/2009) grant regions this authority. The applicable region is determined by where the deceased had their habitual residence during the five years prior to death. For non-residents inheriting Spanish assets, a 2014 ruling by the Court of Justice of the European Union (case C-127/12) and subsequent legislative reform mean non-residents can now apply the most favourable regional rules.

The effect of regional rules is dramatic. Close family members inheriting an estate in Madrid will typically pay close to nothing, while the same inheritance in a region without generous bonuses could attract a significant bill. Planning around regional competence is one of the most effective tools in Spanish estate tax planning.

The Brussels IV Regulation

EU Regulation 650/2012, commonly known as Brussels IV, determines which country’s succession law applies to a cross-border estate. By default, the law of the country where the deceased had their habitual residence applies. However, Article 22 allows individuals to elect — via their will — that the law of their nationality should apply instead. For British expats living in Spain, this is particularly important because it can allow them to avoid Spanish forced heirship rules (legitima) and distribute their estate according to English or Scottish law. For a detailed guide, see our article on Brussels IV Regulation and estate planning in Spain.

Regional Comparison: How Much Would You Pay?

The following table compares the effective inheritance tax treatment across Spain’s major autonomous communities for Group I and II heirs (spouse, children, parents):

Region	Group I/II Reduction	Group III	Group IV	Key Notes
Madrid	99% bonus	15% bonus	State rates	Effectively zero tax for close family
Andalusia	99% bonus (up to €1M exempt)	State rates	State rates	Generous for close family; standard for others
Catalonia	Up to 60% reduction	Partial reductions	State rates	Complex system with multiple tiers
Valencia	50% bonus	State rates	State rates	Moderate relief for close family
Balearic Islands	Up to 33% reduction	State rates	State rates	Limited relief compared to mainland regions
Canary Islands	99.8% bonus	State rates	State rates	Among the most generous in Spain

For non-residents, a landmark 2014 ECJ ruling (case C-127/12) established that EU/EEA nationals inheriting Spanish assets have the right to apply the same regional bonuses as residents. Post-Brexit, British nationals may still benefit depending on the specific region and ongoing administrative practice — professional advice is essential.

Frequently Asked Questions

Related Guides

For comprehensive estate planning in Spain, see our related resources:

• International Estate Planning in Spain — Complete Guide
• Intestate Succession in Spain — What Happens Without a Will
• Brussels IV Regulation — Choosing Which Country’s Law Applies
• How Much Does a Spanish Will Cost?
• Spanish Will vs UK Will: Do You Need Both?
• Forced Heirship in Spain: How It Works
• Spanish Probate Timeline — How Long Does It Take?
• Spanish Will for Non-Residents