Everything You Need to Know about Inheritance Tax

You will have to follow Spanish inheritance law, regardless of how the inheritance tax laws in England work. This means that if you own a property abroad, your heirs will have to pay inheritance tax to the country where your property is located. In Spain, any inheritance above €175.000 for citizens in EU and EEA is liable for inheritance tax. The amount is the same whether you have set up a will or not. We can help you make the decisions that will make you feel the most secure.

Inheritance Tax in Spain

Inheritance Tax in Spain is paid by a heir or beneficiary who has been left money, property or assets in a Will.

Both resident and non-resident beneficiaries are liable to pay Inheritance Tax in Spain.

The amount of tax payable differs from region to region within Spain and there are different allowances and nil rate bands depending on where the property is located, together with the relationship between the beneficiary and the deceased. Unlike the UK however there is no spouse exemption between Husband and Wife and both residents and non-residents are liable for IHT in accordance with the defining rule.

There are strict time limits as to the payment of IHT and a tax return must be filed within 6 months from the date of death. An extension of up to 6 months can be applied for, but no further extensions are given.

In order to avoid Inheritance Tax it is possible to refuse or renounce the inheritance, however the whole of the inheritance must be renounced to avoid the liability.


Knowing that your home will be managed according to your final wishes after you pass provides a sense of security. If you are a English citizen, you can include your property in your english will. Still, it might be both more efficient and more cost-effective to set up a Spanish will. Contact us for an informal chat, where we can discuss your options.

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