Inheritance Spain – Inheritance Tax by Region, Will, and Deadlines 2026

Do you own a property in Spain and wonder what will happen to it when you are no longer here? The answer depends on three things: where in Spain the property is located, whether you have a Spanish will, and which law you have chosen to govern your estate. In the best case your heirs pay zero or close to zero in inheritance tax. In the worst case they can face a tax bill of hundreds of thousands of kronor — plus a bureaucratic nightmare that drags on for over a year.

Most regions where Swedes buy property — Andalusia, Valencia, Murcia, and Madrid — have in practice eliminated inheritance tax for close family through reductions of up to 99%. But the tax benefit is not automatic. You must declare the inheritance within six months, have the right documentation, and ideally have drawn up a Spanish will in advance.

This guide explains everything you need to know: how inheritance tax works, what it costs by region, how forced heirship rules (legítima) affect your freedom to make a will, and what concrete steps you should take to protect your heirs. We do not give legal advice — inheritance rules are complex and your situation may require individual assessment by a qualified lawyer.

How does inheritance tax work in Spain?

Spain's inheritance tax — Impuesto sobre Sucesiones y Donaciones (ISD) — is a tax paid by the heir, not the estate. This differs from many other countries where the estate is taxed before assets are distributed. In Spain it is therefore each individual recipient who declares and pays their share.

Inheritance tax has two levels: a national basic structure set by the Spanish state and regional rules determined by each autonomous community (comunidad autónoma). Regions have the right to introduce their own deductions, reductions, and tax rates — and the differences are enormous. An inheritance worth 500,000 euros can cost nothing in inheritance tax in Andalusia but tens of thousands of euros in Catalonia.

Who must pay?

You are liable for Spanish inheritance tax if:

• You inherit a property located in Spain — regardless of where you live and regardless of what nationality you or the deceased had
• You are a tax resident in Spain and inherit assets anywhere in the world
• You inherit from a person who was a tax resident in Spain — even if the assets are outside Spain

As a Swede who owns a holiday home on the Costa Blanca without being registered in Spain, the first point applies: your heirs pay Spanish inheritance tax on the Spanish property.

How is the tax calculated?

The calculation is done in four steps:

1. Determine the value of the inheritance — the property's market value (or reference value) at the time of death, plus any bank deposits, vehicles, and other assets in Spain
2. Deduct personal allowances — depending on family relationship (see groups I–IV below)
3. Calculate the base tax — by applying the progressive tax scale to the taxable base
4. Apply multipliers and regional reductions — the final tax can be dramatically reduced depending on the region and family relationship

What tax rates apply?

The national tax scale is progressive with rates from 7.65% to 34%. The scale works like a staircase — different portions of the inheritance are taxed at different percentages:

Personal allowances by family group

Before the tax is calculated, a personal basic allowance is deducted depending on your relationship to the deceased:

• Group I — Children and adopted children under 21: 15,957 euros + 3,991 euros per year under 21 (max 47,859 euros total)
• Group II — Children and adopted children over 21, spouse, parents, and grandparents: 15,957 euros
• Group III — Siblings, nieces/nephews, in-laws, stepchildren: 7,993 euros
• Group IV — Distant relatives, partners, friends, others: 0 euros

Multipliers based on wealth

The calculated tax is then multiplied by a coefficient depending on the heir's existing wealth and family group:

In practice this means that an heir without large personal wealth who belongs to group I or II (close family) is not affected by any uplift. An heir in group IV with large wealth can however see the final tax more than double.

But — and it is a big but — these national figures are only the starting point. The regional rules are what really determine what you pay.

How do the regions differ?

This is where it gets really interesting for Swedish property owners. Spain's 17 autonomous regions each have their own inheritance tax legislation, and the differences are dramatic. Choose the right region and inheritance tax can in practice be zero for your children and spouse.

Andalusia — effectively tax-free

Andalusia offers a full exemption of 1,000,000 euros per heir in groups I and II. If you inherit a property worth less than one million euros you pay no inheritance tax at all. If the value exceeds one million euros a 99% reduction on the remaining tax applies. For the vast majority of Swedes with a holiday home on the Costa del Sol this means zero inheritance tax.

Valencia — recently improved

Since May 2023 the Valencia region grants a 99% reduction for heirs in groups I and II, plus a basic allowance of 100,000 euros. This is a dramatic change — previously Valencia was one of the most expensive regions for inheritance. New from June 2026: siblings, aunts/uncles, and nieces/nephews (group III) receive a 25% reduction, rising to 50% the following year.

Murcia — a pioneer

Murcia introduced a 99% reduction as early as 2018 and was one of the first regions to effectively abolish inheritance tax for close family. The region is popular among Scandinavians — and the generous inheritance tax is one of the reasons.

Madrid — always generous

Madrid has long had a 99% reduction on inheritance tax for groups I and II. This applies to both inheritances and gifts. If you own property in the Madrid region, your children and spouse pay essentially nothing.

Catalonia — the expensive exception

Catalonia stands out negatively. The reduction for group II is limited to 100,000 euros per heir, with additional deductions based on age for group I (an additional 12,000 euros per year under 21). This means a property worth 300,000 euros can generate a considerable tax bill. If you own property in Catalonia, inheritance planning is especially important.

What is forced heirship (legítima)?

This is where Spanish and Swedish succession law clash. Sweden has essentially full freedom to make a will — you can bequeath your assets to whomever you choose (except that children can demand their reserved share, laglotten). Spanish law is considerably more restrictive.

Under Spanish succession law, the estate is divided into three equal parts:

1. Legítima estricta (strict forced share) — one third that must be distributed equally among the children
2. Mejora (improvement share) — one third that must go to children or grandchildren, but you determine the distribution
3. Libre disposición (free disposal) — one third you can bequeath to whomever you wish

This means two thirds of your estate are reserved for your children and grandchildren under Spanish law. A spouse has the right to the use and enjoyment (usufructo) of one third — but not full ownership.

Why this matters for you as a Swede

If you do not actively do anything, these rules apply to your Spanish property. This can mean:

• Your spouse does not directly inherit the property but only gets the right of use
• Children from a previous relationship have a statutory right to two thirds of the property's value
• Your wish to bequeath the property to a partner, friend, or charitable organisation cannot be fully realised

Do you need a Spanish will?

Yes. The short answer is that all Swedish property owners in Spain should draw up a Spanish will (testamento). Here is why:

Without a Spanish will

If you die without a Spanish will, your heirs must:

1. Have your Swedish will translated into Spanish by an authorised translator
2. Have the document apostilled and legalised
3. Obtain a declaration of heirs (acta de declaración de herederos) from a Spanish notary — a process requiring witnesses and taking weeks
4. Hire a lawyer to interpret how Swedish succession law applies to Spanish assets

The entire process can take 6–12 months and cost 3,000–8,000 euros in lawyer and notary fees — in addition to any inheritance tax. In the meantime the property cannot be sold, renovated, or rented out.

With a Spanish will

With a will drawn up before a Spanish notary:

1. The heirs present the death certificate and the will
2. The notary verifies the will against the central wills register (Registro de Últimas Voluntades)
3. The inheritance can be processed within 2–4 months

The cost of drawing up the will? Normally 100–200 euros at the notary. It is one of the cheapest and most effective steps you can take to protect your heirs.

What should the will contain?

A Spanish will for a Swedish property owner should at minimum include:

• Choice of law clause — that Swedish law shall apply to the entire inheritance (see the section on the EU Succession Regulation below)
• Specific reference to the Spanish property — with address and property registration number (referencia catastral)
• Clear instructions on who inherits — names, personal identification numbers/NIE, and share
• A clause stating the will does not revoke any Swedish will — they should complement each other

How does the EU Succession Regulation (Brussels IV) affect things?

EU Regulation 650/2012 — informally known as Brussels IV — is the most important legal tool for you as a Swede with property in Spain. The regulation came into force in 2015 and applies in all EU countries except Denmark and Ireland.

The basic rule

Without an active choice, the law of the country where the deceased had their habitual residence at the time of death is applied. If you live in Sweden, Swedish succession law applies. If you live in Spain, Spanish succession law applies — including the forced heirship rules.

The choice of law that changes everything

Article 22 of the regulation gives you the right to choose the law of your country of citizenship as the applicable succession law in your will. As a Swedish citizen you can write that Swedish law shall apply to your entire estate — regardless of where the assets are located.

Why is this important? Swedish succession law gives adult children no unconditional right to inheritance (the reserved share only applies if the children actively claim it, and it is half of the inheritance share). Moreover, a spouse inherits before joint children under Swedish law. This gives you considerably more flexibility than Spanish law.

How do you make the choice of law?

Include a formulation similar to this in your Spanish will:

"In accordance with Article 22 of EU Regulation 650/2012, I choose Swedish law, as the law of the country of which I am a citizen, to govern the succession of my entire estate."

The formulation should appear in both Swedish and Spanish in the will. Let your lawyer adapt the exact wording.

Important limitations

• The choice of law only affects succession rights — not the tax. Spanish inheritance tax applies regardless of which law governs the succession. You therefore avoid forced heirship but not tax.
• The choice of law must be in the will. A verbal decision or a note in a Swedish document is not sufficient.
• The surviving spouse's position changes. Under Swedish law your spouse generally inherits before joint children — but minor children still have the right to demand their reserved share.

Can you be taxed in both Sweden and Spain?

Sweden abolished inheritance tax entirely on 1 January 2005. This means you pay no inheritance tax in Sweden, regardless of what you inherit or from where.

But Spain retains its inheritance tax. This means your heirs pay Spanish inheritance tax on the Spanish property — and there is no Swedish inheritance tax to be doubly taxed against.

The Sweden–Spain double taxation agreement for inheritances

Sweden and Spain have a specific double taxation agreement for inheritances and gifts — one of only three such agreements Spain has entered into (the others are with France and Greece). The agreement regulates which assets are taxed where:

• Immovable property (real estate) is taxed in the country where it is located — i.e. Spain
• Movable property (bank deposits, securities, vehicles) is governed by the agreement's specific provisions
• Life insurance may fall under the country where the insured was resident

In practice this means: your Spanish property is always taxed in Spain. Since Sweden has no inheritance tax, there is no double taxation on the property. However, if the deceased had assets in both countries, a lawyer with knowledge of the agreement should review the situation.

Capital gains tax — a tax that remains

Even if inheritance tax is often minimal thanks to regional reductions, your heirs should be aware that they take over the property's tax cost base. If they later sell the property, capital gains tax (19% for EU citizens) can be significant — calculated on the difference between the original purchase value and the sale price.

Plusvalía on inheritance

In addition to inheritance tax, there is a municipal tax that many people forget: plusvalía municipal (Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana). The tax is based on the increase in land value since the property last changed hands and is paid by the person receiving the property — in an inheritance, therefore, by the heir.

How is plusvalía calculated?

Since the 2022 reforms you can choose between two calculation methods and use the one that gives the lowest amount:

• Objective method: The municipality applies standard coefficients to the land's rateable value (valor catastral del suelo) based on the number of years of ownership
• Real value increase: Based on the actual difference in land value between acquisition and inheritance

What does it cost?

The amount varies greatly depending on the municipality and how long the property has been owned. A typical apartment can generate 500–3,000 euros in plusvalía. The deadline is six months from the date of death — the same as for inheritance tax.

Some municipalities offer reductions for inheritance within the family. In Valencia, close relatives can receive up to a 95% reduction on plusvalía when inheriting a primary residence. Check with your local municipality (Ayuntamiento) which rules apply.

Torrevieja and other municipalities in the Alicante province generally have lower rateable values, which results in lower plusvalía compared with major cities.

Steps to protect your heirs

Inheritance planning does not have to be complicated. Here are the concrete steps you should take:

1. Draw up a Spanish will

The most important step. Book an appointment with a Spanish lawyer experienced in international successions. Include a choice of law clause (Article 22, EU Regulation 650/2012) to choose Swedish succession law. Cost: 300–600 euros including legal advice, 100–200 euros for the notary fee.

2. Coordinate with your Swedish will

Make sure your Swedish and Spanish wills do not contradict each other. The Spanish will should clearly state that it only applies to assets in Spain and does not revoke the Swedish one. Speak to a Swedish lawyer who understands international succession law.

3. Obtain NIE numbers for the heirs

Your heirs need NIE numbers (Número de Identidad de Extranjero) to be able to handle the inheritance, pay tax, and register ownership. It is faster to arrange in advance than in a pressured situation after a death.

4. Organise the documents

Collect and store the following in an accessible place:

• Escritura (title deed) for the Spanish property
• Most recent IBI receipt (shows rateable value)
• NIE documents for all parties involved
• Contact details for your Spanish lawyer and bank
• Copy of the Spanish will

5. Consider co-ownership and alternative ownership structures

If you and your spouse own the property jointly (pro indiviso), the surviving spouse inherits their share automatically — but only if the will says so. Without a will, Spanish forced heirship law can complicate matters. Discuss the ownership structure with your lawyer.

6. Review the situation every three to five years

Inheritance legislation changes regularly — Valencia's 99% reduction was introduced as recently as 2023. Regional benefits can be extended or restricted. A regular review with your lawyer ensures your planning is still up to date.

Common mistakes

1. Not having a Spanish will

By far the most common and most costly mistake. Without a will your heirs risk months of waiting, thousands of euros in extra costs, and potentially unwanted outcomes under Spanish forced heirship law.

2. Assuming Swedish rules apply automatically

Without a clear choice of law clause in the will, Spanish succession law may apply — with forced heirship and limited testamentary freedom as a result. Many Swedes discover this too late.

3. Forgetting plusvalía

Heirs often focus on inheritance tax and miss that plusvalía municipal must also be paid within six months. The tax can amount to several thousand euros.

4. Not hiring a local lawyer

The internet provides an overview, but succession law in Spain varies by region and is sensitive to details. A lawyer who knows the local rules — and who speaks your language — is an investment, not a cost.

5. Confusing succession rights and inheritance tax

The EU Succession Regulation lets you choose which succession law applies (who inherits what). It does not affect inheritance tax (how much tax is paid). Many mistakenly believe that a choice of Swedish law also eliminates Spanish tax.

6. Waiting too long to act after the death

The six-month deadline for declaring and paying inheritance tax starts running immediately at the time of death. Gathering the necessary documents — death certificate, declaration of heirs, valuations, NIE applications — takes time. Begin the process immediately.

7. Incorrectly estimating the property's value

The Spanish tax authority uses reference values (valor de referencia) as a minimum basis for inheritance tax. If you state a lower value, the authority can adjust it upwards and charge the difference plus a penalty.

Frequently asked questions about inheritance in Spain

Last updated: April 2026. Inheritance rules and tax rates may change — always consult a qualified lawyer for your personal situation. This guide does not constitute legal advice.