Planning your inheritance as a foreign national with assets in Spain is not a straightforward task. The regulations can feel confusing, and the financial consequences of poor planning are significant.
In fact, inheritance tax for non-residents in Spain is one of the most common concerns we hear from international clients — and understandably so, as it can result in high costs if not properly addressed in advance.
Spanish inheritance tax for non-residents applies to the transfer of assets located in Spain or received by both resident and non-resident heirs. However, its application can vary significantly depending on the state or region where the assets are located and whether a double taxation treaty exists between the country of the heir’s residence and the country of the assets’ location.
For the purposes of Spanish non-resident inheritance tax, a non-resident is any individual who, at the time of the decedent’s death, does not qualify as a Spanish tax resident.
According to Law 35/2006 (IRPF), you are considered a tax resident in Spain if:
If none of these conditions apply, you are considered a non-resident for tax purposes.
Regarding Inheritance and Gift Tax (ISD), different scenarios apply when non-residents are involved:
Following the European Court of Justice ruling (C-127/12, 3 Sep 2014), Spain may no longer discriminate between residents and non-residents in inheritance matters. As a result, non-residents are now entitled to apply the same regional tax benefits available to residents — a key improvement that corrects previous practices which often penalised international heirs.
When applying inheritance tax, the combination of residency status between the decedent and the heir determines the scope of taxation:
In cases involving cross-border estates, EU Regulation 650/2012 allows the testator to apply the inheritance laws of their nationality — a useful option for many international families.
Understanding how tax rates and allowances work is essential for non-residents inheriting assets in Spain. These rules are shaped by both national law and the specific regulations of each autonomous community.
Spanish inheritance tax is progressive, meaning the greater the value of the estate, the higher the applicable tax rate. Rates typically range from 7.65% to 34%, and may be further increased based on kinship coefficients and the pre-existing wealth of the heir.
The law provides reductions in the taxable base depending on the relationship between the deceased and the heir. However, these standard reductions tend to be lower than those established by each autonomous community. For this reason, it is highly advisable to seek advice from a specialist, as local regulations can result in substantial savings.
Following the CJEU ruling (C-127/12, 3 Sep 2014), Spain was required to eliminate discriminatory treatment of non-residents in inheritance tax. Legislative reforms introduced by Law 26/2014 extended regional tax benefits to non-resident heirs within the EU. In 2018, Spain’s Supreme Court expanded this benefit to heirs outside the EU, confirming that unequal treatment violated the principle of free movement of capital.
Inheritance tax rules vary significantly by region:
Andalusia: Offers a 99% allowance for spouses, ascendants, and descendants on estates up to €1 million. A reduction of up to €1 million per direct heir may apply. You can find more information about inheritance tax in Andalusia .
Madrid: Also applies a 99% allowance for Groups I and II, including for non-resident heirs if the assets are located in Madrid.
Catalonia: Offers smaller reductions compared to other regions, with tax rates reaching up to 36.5%, and adjustments based on pre-existing wealth.
Do you need a professional help for Non-resident Inheritance Tax in Spain?
One of the most significant concerns for non-residents is the potential for double taxation in both Spain and their country of residence. To avoid this, Spain has signed double taxation agreements (DTAs) with several countries.
The UK and Spain have a bilateral agreement for non-resident inheritance tax in Spain, allowing British heirs to credit the inheritance tax paid in Spain against their UK tax liability. British heirs may also apply for regional Spanish tax benefits based on the location of the inherited assets.
Under the US-Spain tax treaty, American heirs can deduct Spanish inheritance tax from their US obligations. According to the 1990s treaty, only assets physically located in Spain are subject to taxation. Certain holdings, such as minority shares in Spanish companies, may be exempt from this requirement.
Although there is no specific DTA for Canadians, Spanish law (Art. 23, Law 29/1987) provides relief mechanisms to avoid double taxation. In Canada, inherited assets are treated under the “deemed disposition” rule, which generates potential capital gains, whereas Spain imposes its own inheritance tax.
Tax advisors specializing in international taxation assist expatriates in navigating the Spanish tax system. With over 20 years of experience, I provide tailored tax plans to optimize tax efficiency, ensuring compliance with regulations and minimizing dual taxation.
To prevent penalties, it is crucial to understand the procedures and deadlines for non-resident inheritance tax in Spain.
Among the general documentation to settle Non-resident inheritance tax in Spain, we find:
Literal death certificate
Certificate of last will
Authorized copy of the will
Declaration of heirs (if there is no will)
NIE and passport copies of all heirs
Proof of debts and charges against the estate
Inheritance tax is filed using Form 650, which must be submitted to the tax authority of the relevant autonomous community. Filing can be done either in person or online.
The general deadline is six months from the date of death. A one-time extension of another six months is available, but must be requested within the first five months.
Secure your assets with our Spanish inheritance tax for non-resident guidance
To reduce or avoid paying inheritance tax for non-residents, various methods can be employed, including living donations, making a will, or purchasing life insurance.
Gifts made during the lifetime of the decedent, filed using Form 651, can benefit from the same regional reductions as inheritance. For example, the gift tax in Andalusia allows a 99% exemption for gifts between parents and children.
Having a Spanish will allows you to:
Spanish inheritance tax rules have undergone significant changes in recent years, particularly in how they affect non-resident heirs. Understanding these developments is essential for anyone inheriting or planning estates across borders.
Following the CJEU ruling (C‑127/12), Spain has removed discriminatory treatment between residents and non-residents. The European Commission continues to monitor compliance, and in 2024, it confirmed the removal of the fiscal representative requirement for EU residents.
Decree‑Law 7/2023 in Andalusia extended the €1 million reduction and 99% allowance to heirs from non-EU countries, making Andalusia one of the most favourable regions in Europe for estate planning.
UK citizens no longer automatically benefit from Article 63 protections under the Treaty on the Functioning of the EU. Still, the UK-Spain tax treaty and recent UK inheritance tax reforms (effective from 2025) offer planning opportunities for individuals with cross-border assets.
Avoid costly mistakes—get clarity on non-resident inheritance tax in Spain
At Tejada Solicitors, we offer extensive experience in inheritance tax for non-residents, combining in-depth legal expertise with an international approach. Our services include:
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Yes. You can grant a power of attorney to a representative in Spain, such as your solicitor, who can handle the inheritance on your behalf. This includes signing the acceptance of inheritance, submitting the self-assessment form, and managing all notarial and tax procedures — without the need for you to travel to Spain.
It is highly recommended to draft a Spanish will. While a foreign will may be valid in Spain if properly legalised and translated, having a Spanish will adapted to local law will significantly simplify the inheritance process. It avoids costly sworn translations, reduces notarial steps, and makes it easier to apply regional tax benefits, which often require specific local documentation. In addition, a Spanish will allows you to explicitly designate the applicable law under EU Regulation 650/2012, helping to avoid jurisdictional conflicts or unfavourable interpretations.
A solicitor manages the entire inheritance process on your behalf: obtaining the necessary certificates, calculating the inheritance tax, submitting the tax return (Form 650), managing payment, and registering the property. They ensure deadlines are met and that applicable regional tax allowances are applied. They also represent heirs before notaries and the Land Registry, and can act in administrative reviews or tax appeals if needed.
The deadline for filing the inheritance tax return is six months from the date of death, with the possibility of a six-month extension if requested within the first five months. As long as the required foreign documents are available and properly legalised (apostilled), the full process typically takes between three and six months. In more complex cases, or if documentation is delayed, the timeline may be longer.
