Inheritance tax is a tax that a person must pay on money or property inherited after the death of a loved one. This tax is based on who gets the assets of the deceased and the value of what the deceased gets.
Inheritance tax in Spain applies to everyone, both residents and non-residents. If you are a foreigner, you might also want to read this article about the inheritance of foreigners in Spain: which law applies.
This tax is payable when you receive an inheritance from a friend or relative, whether it is property, money or assets of any kind.
Spanish inheritance tax rates
The Spanish inheritance tax rates set by the national government are progressive and divided into the following brackets depending on the amount of inheritance:
- Inheritance up to €7,993: 7.65%
- €7,993–€31,956: 7.65 to 10.2%
- €31,956–€79,881: 10.2 to 15.3%
- €79,881–€239,389: 15.3 to 21.25%
- €239,389–€398,778: 25.5%
- €398,778–€797,555: 29.75%
- €797,555+: 34%
The general procedure for inheritance tax in Spain:
Although national rules apply throughout the country, Spanish inheritance law rules vary from region to region, in some cases significantly.
Inheritance and gift tax in Spain is administered by the autonomy in which the testator was resident unless the heir is a non-resident of Spain. In the second case, the declaration must be submitted to the “Agencia Estatal de Administración Tributaria”. You can find more information on the website of Agencia Tributaria.
The following steps must be observed:
1. The declaration (self-assessment)
It is made using forms (Modelos) 650 or 652. In almost all inheritance cases, form (Modelo) 652, which is a simplified version compared to form 650, is used. You can download those forms on the website of Agencia Tributaria. You can also, within the period indicated in point 6, make a list of the inherited goods and rights and thus apply for an administrative assessment.
2. If the heir is not resident in Spain
The declaration must be submitted to the following office, which may also be contacted for information on the status of the declaration:
Agencia Estatal de Administración Tributaria
Oficina Nacional de Gestión Tributaria
– Recepción de documentos –
c./Infanta Mercedes, 49
28020 Madrid
3. Spanish resident representative
You must appoint a Spanish resident representative to represent you before the Spanish Tax Administration.
4. The documents that you must enclose with your tax return:
a) General documentation:
- The original and a copy of the declaration of acceptance of the inheritance. If this does not exist, the following documents are required: a complete list of the assets of the deceased and the heirs (in duplicate), showing the data identifying the deceased, the names of the heirs and an address for notification. It is also necessary to have a detailed list of the assets and rights that are the subject of inheritance, with their respective values at the time of death, as well as the charges, debts, and costs for which deduction is requested.
- Death certificate (copy)
- Certificate of the testament (to be requested from the Ministry of Justice) certifying whether or not an entry has been made in the register of wills (copy).
- Will and declaration of heirs (copy)
- Granting of power of attorney to the representative (copy)
b) Specific documents as appropriate:
- Certificate from the Bank certifying the balance of accounts and/or securities deposited at the time of death.
c) It should also be noted that documents issued by foreign authorities must be accompanied by the Hague Apostille and a certified translation.
5. Tax allowances
The Spanish inheritance tax allowances are €15,956.87 for first-line descendants and spouses. For other second and third-degree relatives, an allowance of €7,993.46 applies. There is a tax reduction for children under the age of 21.
6. Deadline for submitting the Spanish inheritance tax return
The deadline for submitting the tax return is 6 months after the inheritance. It can be extended for a further 6 months by paying interest on arrears and by submitting an application from the heirs during the period of 5 months following the date of death of the deceased. The extension is considered accepted if one month has elapsed without a response from the Spanish Tax Agency “Agencia Tributaria”. In the event of late delivery without requesting an extension, a surcharge of 5, 10, 15 or 20% will be added to the amount of tax to be paid, depending on the delay.
7. Bank accounts
The bank branch where the account exists needs proof that the applicants are the heirs and that the inheritance tax obligations have been fulfilled.
If you have doubts about any inheritance, whether you are a resident or non-resident in Spain, our tax advisors in Barcelona will analyze your particular case. We are specialists in all kinds of legislative matters in tax concerns. Please contact us by email or phone.
