Do non-residents pay Spanish inheritance tax on assets located in Spain?

Yes. Spanish inheritance tax (Impuesto sobre Sucesiones y Donaciones) applies to assets located in Spain regardless of where the heirs live. Since the ECJ ruling C-127/12 (2014), non-resident heirs can apply the regional rates of the autonomous community where the property is located, which can be significantly more favourable than national rates.

What is the deadline to pay Spanish inheritance tax as a non-resident?

The deadline is 6 months from the date of death. A 6-month extension can be requested, but the request must be filed within the first 5 months. Late payments incur surcharges ranging from 5% (up to 3 months late) to 20% plus interest (over 12 months late).

Can a non-resident heir pay Spanish inheritance tax in instalments?

In some circumstances, yes — particularly where liquid assets are limited. The request must be filed with the tax office and is subject to conditions. A gestor or tax adviser can advise whether this applies to your situation.

Inheritance Tax for Non-Residents in Spain: The 2026 Guide

Q: Does inheritance tax apply to crypto assets held in Spain?

Cryptocurrency held on a Spanish exchange or held by a Spanish-resident deceased is subject to Spanish inheritance tax. Crypto held on foreign exchanges by a foreign-resident deceased may not be subject to Spanish tax, but may be taxable in the country of residence of the deceased.

In brief: If you inherit assets located in Spain and you are not a Spanish resident, you are still subject to Spanish inheritance tax (Impuesto sobre Sucesiones y Donaciones). Since a landmark ECJ ruling in 2014, you are also entitled to apply the (often much more favourable) rates of the autonomous community where the assets are located. This guide explains how it works, what you pay, and how to manage the process from outside Spain.

Who Is a Non-Resident Heir?

For Spanish inheritance tax purposes, a non-resident heir is someone who, at the time of the inheritance, does not have their habitual residence in Spain. This includes:

Heirs who live in the UK, Germany, the Netherlands, France, or any other country
Heirs who may own property in Spain but are not registered as residents (empadronados)
Heirs who are Spanish nationals but have lived abroad for years and are not resident

Non-residence is determined by your actual situation at the time of the inheritance event, not by your citizenship or the location of the assets.

The ECJ Ruling That Changed Everything: C-127/12

Before 2015, non-resident heirs inheriting assets in Spain were taxed exclusively at the national (state) rate — which is generally higher and less generous with allowances than the rates set by Spain's autonomous communities.

A Spanish resident inheriting an apartment in Andalusia would benefit from Andalusia's generous allowances and reductions (which can be substantial). A non-resident inheriting the same apartment paid national rates with no regional allowances.

The European Court of Justice ruled in C-127/12 (Commission v. Spain, 2014) that this discriminatory treatment was incompatible with EU law on the free movement of capital. Spain subsequently amended its legislation in 2015.

The current rule: Non-resident heirs — whether resident in another EU/EEA country or in a third country — may apply the regional tax rules (normativa autonómica) of the autonomous community where the inherited assets are located (for real property) or where the deceased was resident (for movable assets).

This means a non-resident inheriting an apartment in Madrid can apply Madrid's rates and allowances — which in Madrid's case can result in a 99% tax rebate for direct descendants and spouses.

National vs Regional Rates: The Practical Difference

The national (state) rate scale for inheritance tax in Spain is progressive, ranging from 7.65% on the lowest taxable amounts to 34% on amounts over €797,555.

However, in practice, no one who takes proper professional advice pays the national rate for assets in the most common inheritance scenarios. Each autonomous community has its own rules, typically providing:

Autonomous Community	Key Benefit for Direct Heirs
Madrid	99% tax relief (bonificación) for spouses, children, parents
Andalusia	99% relief for Group I and II heirs (children, spouses, parents)
Catalonia	Significant reductions plus graduated allowances
Valencia	Various reductions; less generous than Madrid/Andalusia
Galicia	99% relief for Group I and II heirs
Canary Islands	99.9% relief for Group I and II heirs
Balearic Islands	99% relief for direct descendants

These figures change with regional legislation. Always verify current rules with a local tax adviser.

The result: non-resident direct heirs (children, spouses) inheriting assets in Madrid or Andalusia may pay close to zero inheritance tax — but only if they correctly apply for the regional rate and meet the conditions.

Deadlines: The 6-Month Rule

Spanish inheritance tax must be declared and paid within 6 months of the date of death. This is a strict deadline that applies to non-residents exactly as it applies to residents.

You may request a 6-month extension — but the request must be filed within the first 5 months. If you miss the original deadline without requesting an extension, surcharges apply:

Delay	Surcharge
Up to 3 months	5%
3–6 months	10%
6–12 months	15%
Over 12 months	20% + late payment interest

For non-residents managing a cross-border estate from abroad, six months can pass very quickly — especially if the death certificate needs apostilling, the Spanish notary appointment takes time, and the NIE number for heirs needs to be obtained. Start the process immediately.

What Non-Residents Must Do

Step 1: Obtain an NIE Number

Every heir who is not a Spanish resident must obtain a NIE (Número de Identificación de Extranjero) — the Spanish tax identification number for foreigners. This is required to:

Sign the inheritance deed before a Spanish notary
Pay inheritance tax
Register inherited property in the land registry

NIE numbers can be obtained at a Spanish consulate in your home country or at a Spanish police station in person. Allow 2–6 weeks.

Step 2: File the Inheritance Tax Return

Non-residents file the inheritance tax return with the Spanish Tax Agency (Agencia Tributaria). Since the 2015 law reform:

Non-residents in EU/EEA countries file with the central tax office in Madrid
Non-residents from other countries also file centrally

You (or your Spanish gestor or tax adviser) must calculate the tax due using the applicable regional rules and submit Form 650 (or 660 for certain cases).

Step 3: Valuation of Assets

All inherited assets must be valued at the market price on the date of death:

Real property: use the valor de referencia published by the Catastro, or an independent appraisal
Financial assets: use the closing price on the date of death
Cryptocurrency: use the market price at the time of death on a recognised exchange

Double Taxation: Can You Be Taxed Twice?

If you are a tax resident in another country that also levies inheritance or estate tax on worldwide assets (such as the UK or France), you may face inheritance tax in both Spain and your country of residence.

Spain has double taxation treaties on inheritance tax with France and Sweden. With most other countries (including the UK, Germany, the Netherlands), there is no specific inheritance tax treaty. However, many countries offer unilateral tax credits for inheritance tax paid abroad, which can reduce or eliminate double taxation.

Professional advice is essential for cross-border estates involving assets in multiple countries.

A Note on Digital Asset Documentation

Non-resident heirs often face the additional challenge of not knowing exactly what assets exist in Spain — and being unable to access the information needed to manage the estate remotely. This is particularly acute for:

Online bank accounts with Spanish banks
Investment platforms used by the deceased
Rental income accounts for Spanish property

Sucesio addresses exactly this problem: by ensuring your heirs receive a complete, documented inventory of all your assets and accounts — together with contact details for your Spanish notary, gestor, and tax adviser — at the moment they need it, wherever they are in the world.

Frequently Asked Questions

I live in the UK. Do I still pay Spanish inheritance tax on my inherited Spanish property? Yes. Spanish inheritance tax applies to assets located in Spain regardless of where the heirs live. As a UK resident, you may now apply the regional rates of the autonomous community where the property is located.

What is the Spanish inheritance tax rate for a child inheriting a house worth €300,000? It depends on the autonomous community where the property is located, the prior relationship, and the child's pre-existing wealth. In Madrid or Andalusia, a child in Group II (direct descendant) may pay close to zero due to the 99% bonificación. In Catalonia or Valencia, the tax is meaningful but reduced by allowances. A gestor or tax adviser can calculate the exact figure.

Does inheritance tax apply to crypto assets held in Spain? Cryptocurrency held on a Spanish exchange or otherwise taxable in Spain (e.g., because the deceased was a Spanish resident) is subject to Spanish inheritance tax. Crypto held on foreign exchanges by a foreign-resident deceased may not be subject to Spanish tax — but may be subject to tax in the country of residence of the deceased.

Can I pay Spanish inheritance tax in instalments? In some circumstances, yes — particularly where liquid assets are limited. This must be requested from the tax office and is subject to conditions. Your tax adviser can advise whether this applies to your situation.

This article is for general informational purposes only and does not constitute legal, tax, or financial advice. Tax rules change. Always consult a qualified tax adviser or gestor for your specific situation.