Shorouk Express
Spain’s inheritance tax, known as el impuesto de sucesiones, can very greatly depending on the region in which you have to pay it. It applies to the transfer of property and assets between individuals when the original owner dies, regardless of whether they left a will or not.
Gift tax on the other hand – known as impuesto de donaciones in Spanish – is levied on the increase of wealth, because you received a donation from someone while they are still alive.
It’s important to understand how they both work in order to avoid any surprises when a loved one with a connection to Spain passes away or if you receive any financial help from family while living here.
Law 29/1987 of December 18 on inheritance and gift tax, establishes a tax scale that ranges between 8.65 and 34 percent, but discounts and benefits are specific to each region, so it can vary quite a lot.
READ ALSO: How much money can I give someone in Spain without paying tax on it?
Keep in mind that regional governments may change to change the conditions for inheritance and gift tax at any point throughout 2025, as this isn’t always done at the start of the year, so you may find them to be different later on.
Andalusia
A reduction of up to one million euros is granted to descendants, spouses and ascendants; and a €250,000 for second, third and fourth degree relatives, as well as for descendants and ascendants by affinity.
Aragón
A 99 percent reduction is granted in Aragón on inheritance tax. Until now, only those under 21 years of age whose inheritances did not exceed €500,000 benefited from this.
Asturias
Children under 21 years of age who are descendants or adopted, as well as spouses, ascendants or legal guardians over 21 years of age, are exempt from paying the tax until the inheritance reaches €300,000.
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Balearic Islands
Inheritances between ascendants, descendants and spouses are exempt from taxes. A general discount of 25 percent is granted for inheritances between siblings, aunts and uncles, and nieces and nephews, which increases to 50 percent if the deceased had no descendants or had disinherited them.
Basque Country
When the inheritance amount between descendants, ascendants, spouses or de facto partners is less than €400,000 you are not required to pay taxes. For higher amounts, a tax rate of 1.5 percent is applied.
Canary Islands
As of September 6th, 2023, inheritances between ascendants, descendants, spouses, siblings, aunts and uncles, plus nieces and nephews are almost completely exempt as a 99.9 percent discount is applied. The taxation of gifts between spouses, ascendants and descendants also has a 99.9 percent discount.
Cantabria
Children, parents and spouses are entitled to a 95 percent reduction on the tax base of the value of the home, with a limit of €125,000 for each heir.
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Castilla-La Mancha
In Castilla-La Mancha, descendants, spouses and ascendants can get a 100 percent bonus. But if the inheritance exceeds €300,000, the reduction is only 80 percent.
Castilla y León
Castilla y León applies a 99 percent reduction for spouses, descendants and adoptees, as well as ascendants and legal guardians of the deceased.
Catalonia
In Catalonia, descendants under 21 can receive a reduction on the tax base of €100,000, plus an additional €12,000 for each year under 21, with a limit of €196,000. For spouses, the reduction is €100,000, and for parents and grandparents it’s €50,000 and €30,000 respectively.
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Extremadura
Descendants and adoptees under 21 can get a 99 percent reduction on the adjusted tax rate. Descendants and guardians aged 21 and older, spouses and ascendants can also benefit from the following:
A 99 percent reduction when the tax base does not exceed €175,000
A 95 percent reduction when the tax base does not exceed €325,000
A 90 percent reduction when the tax base does not exceed €600,000
As of January 1st, 2025 there is a 99 percent reduction for family members with special ties, which includes nieces, nephews and stepchildren.
Galicia
There is a reduction of €400,000 for ascendants, descendants and spouses with rates between 5 and 18 percent and a reduction of €300,00 for disabled people who are siblings, aunts, uncles, nieces, nephews or cousins.
La Rioja
La Rioja offers a 99 percent reduction on inheritances from parents to children or between spouses. Since the beginning of 2024, no tax has to be paid on inheritances exceeding €400,000 between direct nuclear family members.
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Madrid
As of January 1st, 2017, spouses or relatives of the deceased or donor can benefit from a 99 percent reduction. In addition, there is a reduction of up to 25 percent for siblings, uncles, aunts, as well as nieces and nephews, although this may be a 50 percent bonus later this year.
Murcia
A reduction of 99 percent on gifts to ascendants, descendants and spouses.
Navarra
Ascendants and descendants can benefit from rates of 2 to 16 percent. In the case of spouses, the rate will be 0 percent for less than €250,000 and above that value it will be 0.8 percent.
Valencia region
As of May 28th 2023, a 99 percent discount on inheritance tax is applied retroactively for spouses, ascendants and descendants, as is the same in the case for gifts and donations.
READ ALSO: What are Spain’s tax rules on inheritance from abroad?
