Author Dmitrii Sheinkman Residence permit expert, tax adviser Updated 27 September 2026 8 min read Message the author

Inheritance and gift tax in Spain in 2026: regional reliefs and non-residents

Inheritance and gift tax in Spain is paid by the person who receives the assets — the heir or the recipient of the gift — not by the person who leaves or gives them. Spanish residents pay on inheritances and gifts from anywhere in the world, non-residents only on assets in Spain. The state rate goes up to 34%, but in practice the tax is almost always calculated under the rules of the autonomous community, and in Madrid, Andalusia, Valencia, the Balearic and Canary Islands children and spouses pay between 0 and 1% of the calculated tax. Since 2021 regional reliefs have also been available to non-residents, including residents of Russia. Here is who pays, which region applies, which reliefs apply in 2026, the deadlines and what else to pay when inheriting property.

Who pays inheritance and gift tax

The tax is set by Law 29/1987. It applies to assets received by inheritance, gifts and life insurance payouts to beneficiaries.

Recipient	What is taxed
Spanish tax resident	everything received, wherever it is located
Non-resident	only assets located in Spain and rights exercised in Spain

Tax residence is determined for the heir or recipient, not for the deceased or the donor. If you have moved to Spain and spent more than 183 days here in a year, you will also pay tax on an inheritance received in Russia. How residence is determined is covered in our guide to Spanish tax residence.

How the tax is calculated under state rules

State rules apply if the region has not set its own or they do not apply to you. The calculation has three steps: reliefs are deducted from the value of the assets, the scale is applied to the remainder, and the result is multiplied by a coefficient.

Kinship group	Who is included	Deduction from the base
I	children and grandchildren under 21	€15,956.87 plus €3,990.72 for each year under 21, up to €47,858.59
II	children and grandchildren aged 21 or over, spouse, parents	€15,956.87
III	siblings, uncles and aunts, nephews and nieces, relatives by marriage in the direct line	€7,993.46
IV	cousins and more distant relatives, unrelated persons	0

Scale: from 7.65% to 34%. The 34% rate starts at €797,555.08.
Coefficient: depends on the group and the wealth the heir already had: from 1.0 to 1.2 for children, spouse and parents, from 2.0 to 2.4 for unrelated persons.
The deceased’s main home: a 95% reduction, up to €122,606.47 per heir, if it goes to the spouse, children or parents and is kept for 10 years.
Life insurance for the spouse, children and parents: a 100% reduction, up to €9,195.49.

Which region’s rules apply

Spanish regions set their own reliefs, which are usually far more generous than the state ones. At first only Spanish residents could use them, but after the EU Court of Justice judgment of 3 September 2014 the law was changed, and since July 2021 everyone can choose the regional rules. The Spanish Tax Agency states plainly that regional rules can be applied by residents of both EU and third countries. The exception is insurance payouts that are not part of the estate: only state rules apply to them.

Regional reliefs depend on where the deceased lived or where the assets are located, not on the heir’s nationality.

If a Spanish resident moved between regions, the region where they spent the most days in the last 5 years counts. For gifts of money or other movable assets located in Spain to a non-resident, the region where the asset was located for the most days in the last 5 years applies.

Regional reliefs in 2026

For children, spouses and parents, the tax has been almost eliminated in most regions popular with people moving to Spain.

Region	Inheritance to children, spouse, parents	Gifts to children, spouse, parents
Madrid	99% tax credit	99% credit; notarial deed if more than €10,000 from one donor over 3 years; source of money stated in the deed
Andalusia	€1,000,000 deduction from the base and 99% tax credit	99% credit; notarial deed if more than €5,000; money within a month, with proof of source
Valencia	99% credit	99% credit for spouse, parents, children, grandchildren and grandparents; notarial deed
Balearic Islands	100% credit	100% deduction; notarial deed; property value in the deed no higher than the reference value plus 20%
Canary Islands	99.9% credit, also for siblings, uncles, aunts, nephews and nieces	99.9% credit; notarial deed; no more than once every 3 years
Catalonia	spouse 99%; children from 99% on the first €100,000 down to 20% above €3,000,000; €100,000 deduction for spouse and children	no credit, reduced scale: 5% up to €200,000, 7% up to €800,000, then 9%; notarial deed

Almost everywhere the key condition for the gift credit is a notarial deed, and for gifts of money, a proven source of funds. A bank transfer to a child without a notary can cost you the relief.

Recent changes:

In Madrid, from 1 July 2025 the notarial deed threshold for gifts rose to €10,000, and siblings, uncles, aunts, nephews and nieces received a 50% credit.
In Andalusia, from 1 January 2026 the gift rules were rewritten, including for money given in instalments: one notarial deed for all payments is enough.
In Valencia, from 1 June 2026 blood relatives of the second and third degree receive a 25% credit, and from 1 June 2027, 50%.

Deadlines and filing

Inheritance: 6 months from the date of death. The deadline can be extended by another 6 months if you ask in the first 5 months; interest accrues during the extension.
Gifts: 30 working days from the day after the transaction.
Forms: 650 for inheritance, 651 for gifts. Non-residents file their documents with the National Tax Management Office (Oficina Nacional de Gestión Tributaria).

Municipal tax when inheriting property

If the estate includes urban property, in addition to inheritance tax the heir pays the municipal tax on the increase in land value, the plusvalía municipal. Non-resident heirs pay it too. The deadline is 6 months, extendable to a year on request; for gifts, 30 working days. The municipality may grant a discount of up to 95% when the home is inherited by children, a spouse or parents.

If a non-resident heir later sells the inherited property, the buyer withholds 3% of the price and pays it to the tax agency on account of the seller’s tax. All property taxes are covered in our guide to property taxes in Spain.

Which law governs the estate

Who inherits and in what shares is decided not by tax law but by succession law. EU Regulation 650/2012 by default applies the law of the country where the deceased habitually resided at death. But a will can choose the law of the country of one’s nationality, including Russia. The choice of succession law does not affect the tax: Spanish tax is calculated under Spanish rules.

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What heirs from Russia need to consider

Spain and Russia have no treaty on double taxation of inheritances. The 1998 treaty covers income tax and wealth tax. Spain has inheritance tax treaties only with France, Greece and Sweden.
A non-resident heir pays in Spain only on assets in Spain, but can apply the reliefs of the region where those assets are located.
Moving changes the tax. Once you are a Spanish resident, you will pay Spanish tax on inheritances and gifts received in Russia too. Large family gifts are best planned before the move.

What happens to a Spanish bank account when the holder dies

Once informed of the death, the bank usually restricts transactions on the account: it is liable for unpaid inheritance tax if it releases the money to heirs without proof of payment (article 8 of Law 29/1987). According to the Bank of Spain, heirs provide:

the death certificate;
the certificate from the register of wills (certificado de últimas voluntades);
the will or a declaration of heirs (declaración de herederos);
documents on the division of the estate and proof of tax payment.

If the account is joint and each holder may operate it alone (cuenta indistinta), the other holder can keep using the money, but the bank may ask for proof of tax payment. Who owns the money in such an account is a separate question: the right to operate it does not mean ownership.

A family business is often grouped under a holding company in Spain — for management, the wealth tax exemption and passing it on to the children.

Frequently asked questions

Do non-residents pay inheritance tax in Spain?

Yes, but only on assets located in Spain, such as a flat or a Spanish bank account. They can also apply the reliefs of the region where the assets are located.

How much does a child pay on an inheritance from parents in Madrid?

In Madrid there is a 99% tax credit for children, spouses and parents, so 1% of the calculated tax is paid.

Can a resident of Russia apply regional reliefs?

Yes. Since July 2021 the law no longer limits the choice of region to EU countries, and the Spanish Tax Agency confirms that residents of third countries can apply regional rules.

What is the deadline for filing an inheritance tax return?

Six months from the date of death. It can be extended by another six months if you ask in the first five months, but interest accrues during that time.

Do I need a notary to give money to my child in Spain?

To get the regional credit, generally yes: in Madrid above €10,000 over 3 years, in Andalusia above €5,000, and in Valencia, the Balearic and Canary Islands a notarial deed is always required. The source of the money must be proven.

Is there an inheritance tax treaty between Spain and Russia?

No. The 1998 treaty covers income tax and wealth tax, and Spain’s inheritance tax treaties are only with France, Greece and Sweden.

Do I have to pay plusvalía when inheriting a flat?

Yes, if the flat is urban. The municipal tax on the increase in land value is paid by the heir, including a non-resident, within six months; the municipality may grant up to 95% off for children, spouses and parents.

Sources

Contents

Who pays inheritance and gift tax
How the tax is calculated under state rules
Which region’s rules apply
Regional reliefs in 2026
Deadlines and filing
Municipal tax when inheriting property
Which law governs the estate
What heirs from Russia need to consider
What happens to a Spanish bank account when the holder dies
Frequently asked questions
Sources

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