When someone passes away and leaves property or assets in Spain, one of the first questions families ask is:
“How much inheritance tax will we have to pay?”
The answer depends on several factors, especially which region of Spain the assets are in. Some regions charge almost nothing for close relatives, while others apply higher rates.
This guide explains the rules in plain English, so you understand what to expect. And if you prefer, we can calculate everything for you and send a clear tax estimate within 48 hours.
Do all heirs have to pay Spanish inheritance tax?
Spanish inheritance tax applies to:
all assets located in Spain, and
worldwide assets if the heir is a Spanish resident
However, many regions offer very generous reductions for children, spouses and parents.
Before any regional rules apply, all heirs benefit from state-level allowances.
State Allowances (Apply Everywhere in Spain)
These allowances reduce the taxable base before calculating any tax.
Group I – Children, grandchildren and great-grandchildren under 21
• €47,858.59 per heir
• Plus €3,990.72 for each year under 21 (max €15,956.87)
Group II – Children aged 21+, spouses, parents, grandparents
• €15,956.87 per heir
Group III – Siblings, nieces/nephews, aunts/uncles, in-laws
• €7,993.46 per heir
Group IV – Cousins, friends, unmarried partners (unless registered)
• No state allowance
Regional rules then add their own reductions or additional allowances.
Regional Inheritance Tax Rules (What UK Families Really Need to Know)
Below are the regions where UK nationals most commonly own holiday homes or inherit property.
Andalucía (Málaga, Marbella, Estepona, Costa del Sol)
One of the most favourable regions in Spain.
Extra allowance: €1,000,000 per heir (Groups I & II)
After allowances → 99% tax reduction for Groups I & II
Children, spouses and parents almost always pay nothing.
Heirs in Groups III & IV pay state rates.
Comunidad Valenciana (Alicante, Costa Blanca, Benidorm, Jávea)
Very generous for close relatives.
Additional allowances:
Group I: €100,000 + €8,000 per year under 21 (max €156,000)
Group II: €100,000
After allowances → 99% reduction for Groups I & II.
Very low or zero tax for close family members.
Madrid
Extremely favourable.
99% reduction for Groups I & II
50% reduction for Group III
No reductions for Group IV
Parents, children, spouses usually pay almost nothing.
Cataluña (Barcelona, Girona, Tarragona)
Less generous than Andalucía or Valencia.
Extra allowance: €100,000 (Groups I & II)
No flat 99% reduction
Uses progressive rates
Close relatives may pay some tax here.
Balearic Islands (Mallorca, Ibiza, Menorca)
Additional allowances:
Group I: €25,000
Group II: €25,000
Reductions:
100% reduction for Groups I & II
60% reduction for some Group III relatives
35% for others in Group III
Very favourable for children, spouses and parents.
Canary Islands (Tenerife, Gran Canaria, Lanzarote)
Exceptionally favourable.
Extra allowances:
Spouse: €40,400
Children: €23,125
Descendants/ascendants: €18,500
Extended relatives: €9,300
After allowances → 99.9% reduction for Groups I, II & III.
Close relatives pay almost zero.
Murcia (Costa Cálida)
No extra personal allowances
But 99% reduction for Groups I & II
Children, spouses and parents still pay almost nothing.
Other Regions
Every region applies its own rules.
Correct inheritance tax calculation requires:
accurate asset valuation
identification of the right regional rule
correct application of state + regional allowances
correct documentation and deadlines
We handle all of this for you and explain everything in simple terms.
Want a Free Inheritance Tax Estimate?
We can calculate a clear, no-obligation tax estimate for your Spanish property.
Simply send us:
the property location
the approximate value
the relationship of the heirs
You’ll receive a clear breakdown within 48 hours.
Email:
Call: +34 674 326 758
We’re here to help you through the process.