Inheritance tax and gift tax

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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?

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