International differences, planning advisable
The inheritance tax and gift tax in Spain can be high. The standard rates are up to 34%, but in the case of non-relatives, these can be up to 82%. The rates can be found at the bottom of this page.
This is an important issue for the many foreigners who have built up their assets in their homeland, have family there, but are moving to Spain and will than see the Spanish tax authorities claim a substantial share of this.
Residents and non-residents
The Spanish tax authorities levy inheritance tax and gift tax in Spain if the recipient of the inheritance or donation resides in Spain (‘residents’). In other countries, however, the testator or donor might be the one to be taxed.
In addition, Spain has the right if the testator or donor does not live in Spain (‘non-residents‘) to levy taxes on the assets that are located in Spain, such as real estate, bank accounts and art.
Not regulated in international tax treaties
Inheritance tax and gift tax is normally not regulated in tax treaties between countries to prevent double taxes. However some countries have unilateral arrangements.
Do you have a question about the tax treaty between Spain and your country? Feel free to send us your question.
Rates inheritance tax and gift tax Spain
The rates consist of ‘basic rates‘ and a table with increases that apply depending on the family grade (if you are not a direct family or ‘recognized’ partner, the increases are substantial).
Basic rates:
| Amount | to (euro) | rate | beginning scale |
| 0 | 7,933 | 7.65% | 0 |
| 7,933 | 15,980 | 8.50% | 611 |
| 15,980 | 23,968 | 9.35% | 1,290 |
| 23,968 | 31,955 | 10.20% | 2,037 |
| 31,955 | 39,943 | 11.05% | 2,851 |
| 39,943 | 47,930 | 11.90% | 3,734 |
| 47,930 | 55,918 | 12.75% | 4,685 |
| 55,918 | 63,905 | 13.60% | 5,703 |
| 63,905 | 71,893 | 14.45% | 6,789 |
| 71,893 | 79,880 | 15.30% | 7,944 |
| 79,880 | 119,757 | 16.15% | 9,166 |
| 119,757 | 159,635 | 18.70% | 15,606 |
| 159,635 | 239,389 | 21.25% | 23,063 |
| 239,389 | 398,777 | 25.50% | 40,011 |
| 398,777 | 797,555 | 29.74% | 80,655 |
| 797,555 | > | 34.00% | 199,291 |
The rates above are multiplied by a factor that depends on the family grade and the assets of the recipient:
| capacity of receiver | Group I – II | Group III | Group IV |
| < 402,700 euro | 1.00 | 1.5882 | 2.0 |
| 402,700 – 2,007,400 | 1.05 | 1.6676 | 2.1 |
| 2,007,400 – 4,020,800 | 1.10 | 1.7471 | 2.2 |
| > 4,020,800 | 1.20 | 1.9059 | 2.4 |
• Group I: children < 21 years
• Group II: children > 21 years, male / female, parents
• Group III: Family 2nd and 3rd degree
• Group IV: other (including cohabitation partner)
The level of the exemptions from the inheritance tax and gift tax for Spain for the above mentioned groups varies per region. Every autonomous region in Spain has the right to use its own exemptions. In a number of autonomous regions even discounts of 99% of the calculated inheritance or gift tax are granted.
Due to the many regional exceptions and given the complex subject matter, further information and advice is only provided on an individual basis.
Do you have questions about inheritance tax and gift tax in Spain?
Do you want more information about this subject or do you want us to take care of your declaration of inheritance or gift tax?
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