Guide to Spanish inheritance or probate tax
Inheritance or probate tax in Spain is incredibly complex as there are national and regional variations. For regional rules to apply it is normally necessary for the deceased to have been habitually resident in the region for five years and sometimes it is also necessary for the beneficiary to have been resident and to continue to remain resident.
Spanish inheritance tax
Spanish inheritance tax is payable if either the recipient is resident in Spain or if the asset passing on death is property in Spain. It is payable by the recipient and not the estate.
No husband-wife exemption
There is no exemption between a husband and a wife and where both are resident in Spain then the surviving spouse is fully liable on the worldwide assets of the deceased spouse.
Tax payable
The amount payable depends on a number of factors such as:
- Value of asset inherited
- Pre-existing wealth of beneficiary
- Relationship between deceased and beneficiary
Deductions
The surviving spouse, children, grandchildren, parents and grandparents can each claim a deduction of EUR15,957
Distant relatives (cousins, nieces and nephews) can claim a deduction of EUR7,994
Non-relatives are not entitled to any standard deduction.
Children between the age of 13 and 21 are entitled to additional increased deductions starting at EUR47,859 for a child aged 13 and thereafter reducing proportionally up to 21 years of age.
Spanish inheritance tax rates
Tax base |
Tax |
Marginal % |
0 |
0 |
7.65 |
7,993 |
611 |
8.50 |
15,980 |
1,290 |
9.35 |
23,968 |
2,037 |
10.20 |
31,955 |
2,852 |
11.05 |
39,943 |
3,735 |
11.90 |
47,930 |
4,685 |
12.75 |
55,918 |
5,703 |
13.60 |
63,095 |
6,790 |
14.45 |
71,893 |
7,944 |
15.30 |
79,880 |
9,166 |
16.15 |
119,757 |
15,606 |
18.70 |
159,634 |
23,063 |
21.25 |
239,389 |
40,011 |
25.50 |
398,777 |
80,655 |
29.75 |
797,555 |
199,291 |
34.00 |
Multiplier
| Existing net worth | Group I |
Group II |
Group III |
Up to EUR402,678 |
1.0000 |
1.5882 |
2.0000 |
EUR402,678 to EUR2,007,380 |
1.0500 |
1.6676 |
2.1000 |
EUR2,007,380 to EUR4,020,770 |
1.1000 |
1.7471 |
2.2000 |
Above EUR4,020,770 |
1.2000 |
1.9059 |
2.4000 |
Group I – Spouse, children, adopted children, grandchildren, parents & grandparents
Group II – Cousins, nieces, nephews, & other distant relatives
Group III – All others included common law partners
Prescripción or 4 year limit
The liability to all Spanish taxes expires four years after the date upon which taxes should have been paid. Spanish law requires that an inheritance be declared and all taxes paid within 6 months of death. Therefore after 4 years and 6 months no inheritance tax is payable. However in the intervening period the beneficiary is exposed to significant penalties and interest.
Surcharge & interest on late payment
Number of months late in making payment |
Surcharge/Interest |
0 to 3 |
5% |
3 to 6 |
10% |
6 to 12 |
15% |
12 to 18 |
20% |
18+ |
20% Surcharge + |
Statutory interest ( Interés de demora ) is calculated from end of surcharge period until date payment is actually made.
