Inheritance Tax Spain 2026

It depends entirely on which autonomous community the deceased lived in. In Madrid or Andalusia: almost nothing — a 99% bonification means a child inheriting €1m pays approximately €500. In Catalonia: potentially €100,000-€180,000 on the same inheritance. The national tariff runs 7.65% to 34%, but community bonifications dramatically reduce this for direct family. Non-residents inheriting Spanish property must apply federal rates — no community bonification — which are significantly higher.

The Comunidad de Madrid applies a 99% bonification (tax reduction) to inheritance tax payable by Group I (children under 21) and Group II (spouses, children over 21, parents) heirs. This was introduced as a pro-business, low-tax policy by successive PP-governed Madrid governments and has been maintained. It means the calculated inheritance tax is multiplied by 1% — effectively eliminating it. This has made Madrid a highly attractive location for wealthy families to establish tax residency within Spain.

Spain divides beneficiaries into 4 groups: Group I — children and adopted children under 21 (largest basic reduction); Group II — spouses, registered partners (pareja de hecho), children over 21, grandchildren, parents, grandparents; Group III — siblings, aunts and uncles, nephews and nieces, parents-in-law, children-in-law; Group IV — all other relatives and unrelated persons. Groups I and II benefit from most autonomous community bonifications. Groups III and IV typically receive no bonification and pay full federal rates — which can be very high.

Yes — non-residents who inherit Spanish assets pay inheritance tax on those Spanish situs assets. Crucially, non-residents must use the national tariff (no autonomous community bonification). A non-resident child inheriting a Spanish villa worth €500,000 pays the full federal rate — approximately €50,000-€70,000 — while a Madrid-resident child would pay approximately €500. The EU Commission took action against Spain for discriminating against non-resident EU citizens, leading to a law allowing EU residents to apply the community rules of the asset location or heir's residence since 2015. UK residents (post-Brexit) lost this right.

The multiplicador (coefficient) increases the inheritance tax based on the heir's existing net wealth (patrimonio preexistente). Group I/II heirs with wealth under €402,678 have a multiplier of 1.0 (no increase). As wealth increases, the multiplier rises — up to 1.3× for Group I/II with wealth over €4m, and up to 2.4× for Group IV heirs with high wealth. The multiplier applies to the gross tax calculation before autonomous community bonifications. For most direct family heirs in bonification communities, the multiplier is academic — the bonification eliminates most tax anyway. For non-residents or Group III/IV heirs, it can dramatically increase the bill.