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 non-EU countries. 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.

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 abroad. 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.

Property in Spain is valued at no less than the Catastro reference value (valor de referencia, Article 9.3 of Law 29/1987). It cannot be appealed on its own — only through the tax return; how this works is explained in our guide to property taxes in Spain.

• 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.

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.

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. Residents file with their regional tax office, or with the AEAT for a gift of property abroad. 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. The choice of succession law does not affect the tax: Spanish tax is calculated under Spanish rules.

What heirs from outside Spain need to consider

• Inheritance tax treaties are rare. Spain has inheritance tax treaties only with France, Greece and Sweden; income tax treaties do not cover inheritances.
• 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 abroad too. Large family gifts are best planned before the move.

Money from parents abroad: how to document the gift

For a Spanish tax resident, a transfer from parents is a gift, and the recipient pays the tax on it wherever the parents live. The rules of the region where you live apply — more precisely, the region where you spent the most days over the last 5 years (Articles 28 and 32 of Law 22/2009). The return on form 651 is filed with that region’s tax office within 30 working days of the day after the gift. The date of the gift is the day the deed is made (Article 24 of Law 29/1987), not the day the money reaches your account.

1. A tax number for the parent. Form 651 asks for the donor’s NIF. A parent without an NIE can get a number starting with M (NIF-M) at a Spanish consulate or at the tax office through a representative using form 030 (Spanish Tax Agency).
2. The gift deed. For money the law does not require a notary: movable property can be given orally or in writing (Article 632 of the Civil Code). But almost every regional relief requires a public deed and, for cash, a statement of the source of the funds and how they are paid. The deed can be made before a notary in Spain or in the parent’s country. A foreign notarial deed needs an apostille and a sworn translation; check with the regional tax office before signing whether it will accept it for the relief.
3. Proof of kinship. The birth certificate proves the kinship group. A foreign certificate needs a sworn translation and, depending on the country, an apostille — see our guide to apostille and legalisation for Spain.
4. Transfer and return. The money is sent from the parent’s account to yours as stated in the deed. Form 651 is filed even if the relief brings the tax close to zero. In Madrid and Valencia the relief covers assets in a return filed on time or later but before the tax office asks; in Madrid the public deed must still be made before the filing deadline ends. What a late return costs is covered in Spanish tax penalties and late returns.

Giving a flat is stricter: a gift of real estate is valid only in notarial form (Article 633 of the Civil Code). If a Spanish resident receives a flat abroad as a gift, the return goes to the state Tax Agency (AEAT), not the region, but the recipient may choose the rules of their own region (AEAT table of competences). Tax paid abroad on that gift is deducted from the Spanish tax, up to the Spanish tax on the same part (Article 23 of Law 29/1987).

Gifts from one donor within 3 years are added together

If the same donor gives you several gifts within 3 years, they are treated as one transaction for the tax: the new gift is taxed at the average rate for the total (Article 30 of Law 29/1987). Splitting a large sum into yearly transfers therefore does not help. Gifts made within 4 years before the donor’s death are likewise added to the inheritance from them. Mother and father are separate donors, and their gifts are not added together.

Regional thresholds are also counted over a period. In Madrid, gifts from one donor up to €1,000 over 3 years are tax-free and need no return, and a public deed is required once the total over 3 years exceeds €10,000. In Valencia, the €100,000 deduction for children, spouse and parents counts all gifts from one donor over 5 years.

Transfers between spouses

Under community of property (sociedad de gananciales), what is earned during the marriage belongs to both spouses (Articles 1344 and 1347 of the Spanish Civil Code), so a transfer from the husband’s account to the wife’s is not a gift and is not declared on form 651. Community of property is the default under Spain’s common civil law (Article 1316); regions with their own civil law have their own rules. For a marriage between two foreign citizens of the same nationality, the regime is set by the law of their country (Article 9.2 of the Spanish Civil Code).

If the spouses have agreed separate property (separación de bienes), passing money that belongs to one of them to the other can be a gift. A spouse is in kinship group II, so the same regional reliefs as for a gift to children apply. In practice, members of tax chats agree that everyday transfers to a spouse do not need to be declared; the bank may ask where the money came from, but that has nothing to do with gift tax.

A loan from a relative instead of a gift

Money can also be borrowed. A loan between private individuals falls under transfer tax (ITP) but is exempt from it (Article 45.I.B.15 of the ITP Law). The exemption does not remove the filing: the borrower files a nil return together with the contract, as the Directorate General of Taxes (DGT) points out in ruling V1705-12. In most regions this is form 600; the state regulation sets 30 working days from signing (Article 102 of the ITP Regulation), and a region may set its own deadline.

• What the contract states: the amount, the term, the repayment schedule and the interest — or an express statement that the loan is interest-free. In practice, form 600 for a family loan is filed without a notary: the contract with a sworn translation is attached to it.
• Kinship alone does not turn a loan into a gift. Ruling V1705-12 concerned a €1,000,000 loan over 20 years between relatives: the DGT replied that a family tie does not mean a disguised gift if the contract is filed with the tax office and repayment is proven. If the money is not repaid, the tax office may treat the loan as a gift, so repayments are made by bank transfer on schedule.
• Interest. If the lender is a Spanish tax resident, the income tax law presumes the loan bears interest unless proven otherwise (Article 6.5 of the IRPF Law), so the absence of interest is written into the contract. Interest received is the lender’s income.
• Which is better. A gift to children in Madrid, Andalusia or Valencia costs 1% of the calculated tax and does not have to be repaid. A loan triggers no tax, but the money must be repaid. It makes sense when the region gives no large relief, as in Catalonia, or when the money is needed for a while.

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 a non-EU country 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, in the Balearic and Canary Islands a notarial deed is always required, and in Valencia too, except for cash gifts up to €4,000 over 3 years, where a document with a qualified electronic signature is enough. The source of the money must be proven.

Do I have to declare money my parents sent me from abroad?

Yes, if you are a Spanish tax resident. It is a gift: the recipient files form 651 with the tax office of their region within 30 working days of the deed. Regional reliefs usually require a public deed and proof of where the money came from.

Are gifts from the same parent over several years added together?

Yes. Gifts from one donor to the same recipient within 3 years are treated as one transaction: the new gift is taxed at the average rate for the total (Article 30 of Law 29/1987).

Is a transfer of money to my husband or wife a gift?

Not under community of property: what is earned during the marriage belongs to both. Under separate property, money passed from one spouse to the other can be a gift, and the regional reliefs for spouses apply to it.

Do I have to file form 600 if a relative lends me money?

Yes. The loan is exempt from transfer tax, but the borrower files a nil return together with the contract — within 30 working days under the state regulation. The contract states the amount, the term, the repayment schedule and the interest or the absence of it.

Which countries have an inheritance tax treaty with Spain?

Only France, Greece and Sweden. Income tax treaties do not cover inheritances.

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

• Law 29/1987 on inheritance and gift tax
• Royal Decree 1629/1991, tax regulation, Articles 67 and 68
• Spanish Tax Agency: inheritance and gift tax for non-residents
• Madrid: Legislative Decree 1/2010, Article 25
• Andalusia: Law 5/2021
• Valencia: Law 13/1997, Article 12 bis
• Catalonia: Legislative Decree 1/2024
• Balearic Islands: Legislative Decree 1/2014
• Canary Islands: Legislative Decree 1/2009
• Royal Legislative Decree 2/2004, plusvalía municipal
• Non-Resident Income Tax Law, Article 25.2
• Spanish Tax Agency: inheritance tax treaties
• EU Regulation 650/2012 on succession
• Law 22/2009, Articles 28 and 32: which region applies
• Spanish Civil Code, Articles 9.2, 632, 633, 1316, 1344, 1347
• ITP Law, Article 45.I.B.15: loans exemption
• ITP Regulation, Article 102: filing deadline
• DGT ruling V1705-12: loan between relatives
• Spanish Tax Agency: NIF for foreigners without an NIE
• Spanish Tax Agency: which region receives form 651