Content reviewed by Patricia Rivas, lawyer registered with the Málaga Bar Association, specialising in cross-border inheritance for non-resident clients. Last reviewed: September 2026.
If you are a non-resident inheriting assets in Spain, you may be entitled to apply the same regional tax rules and benefits available to residents, depending on the circumstances of the inheritance and the applicable rules under Spanish Inheritance and Gift Tax legislation.
This is particularly relevant in regions such as Andalusia, where close relatives may benefit from significant tax reductions and a 99% tax credit on the resulting tax liability. In Andalusia, this 99% reduction currently applies to Group I and II heirs, including children, parents and spouses.
The position of non-residents changed significantly following the 2014 judgment of the Court of Justice of the European Union in Case C-127/12, after which Spain amended its legislation to allow certain non residents to access regional tax rules. The Spanish courts subsequently extended the principle to situations involving non-EU residents.
The result is that being resident outside Spain does not, by itself, mean that you must pay more Inheritance Tax. However, the applicable regional rules must be determined carefully in each individual case.
01/
Older information about Spanish Inheritance Tax often states that non residents are subject exclusively to the less favourable state rules while Spanish residents benefit from regional reductions.
That is no longer an accurate description of the current system.
Under the rules applicable today, non-resident heirs may be entitled to apply the legislation of an Autonomous Community where the statutory requirements are met. The applicable rules depend on factors including the residence of the deceased and the heir and the location and value of the assets involved.
This can make a substantial difference to the amount of tax payable, particularly in regions such as Andalusia.
02/
This isn’t a minor technicality, it’s the result of two separate legal battles, and knowing the dates matters because they define exactly whose situation is covered:
3 September 2014: The Court of Justice of the European Union ruled, in Commission v Spain (Case C-127/12), that denying EU/EEA residents the regional tax reliefs available to Spanish residents breached the free movement of capital under the Treaty on the Functioning of the EU.
1 January 2015: Spain amended the Inheritance and Gift Tax Act (Ley 29/1987) with a new Second Additional Provision, formally extending regional reliefs to EU and EEA residents.
19 February 2018: The Spanish Supreme Court went further, ruling that the same principle, free movement of capital, applies to “non-EU” residents too, since the relevant treaty protection isn’t limited to EU member states. The case involved a Canadian resident who had been overcharged on an inheritance from his mother in Spain, and the Court ordered the Spanish state to refund the difference, with interest.
The practical effect: there is currently no lawful basis for Spain to tax a non-resident heir, EU or not, more heavily than a resident would be taxed on the same inheritance in the same region. If you’re dealing with an inheritance now, this applies to you regardless of your passport.
03/
The main difference is often administrative rather than purely tax related.
| Spanish Inheritance Tax | Spanish resident | Non-resident |
|---|---|---|
| Regional rules | Determined according to the applicable residence rules | May apply regional legislation where the statutory requirements are met |
| Regional tax benefits | Available where applicable | Available where applicable |
| NIE | Spanish tax identification required | Spanish tax identification required |
| Fiscal representative | Not generally applicable | May be mandatory for non-residents outside the EU/EEA in the circumstances established by law |
| General filing deadline | Six months from death | Six months from death |
| Travel to Spain | Depends on the procedure | Often possible to manage remotely through Power of Attorney |
The six-month filing period applies regardless of where the heir lives. For international estates, obtaining foreign documents, apostilles, sworn translations and Powers of Attorney can take additional time, making it particularly important to begin the process promptly.
04/
Where Spanish real estate forms part of the inheritance, its tax valuation must be determined in accordance with the current Spanish rules.
For properties with an official valor de referencia, this value is generally used for Inheritance Tax purposes. If the value declared by the taxpayer is higher, the higher value applies. Where no reference value exists, different valuation rules apply.
Each heir is taxed on their individual share of the inheritance, taking into account their relationship with the deceased, applicable reductions, the value of their acquisition and any other relevant circumstances.
The fact that several heirs jointly inherit one property does not, by itself, mean that they are taxed as a single taxpayer.
05/
Spouses fall within Group II for Spanish Inheritance Tax purposes. In Andalusia, spouses, children and other Group I and II beneficiaries may currently benefit from a 99% reduction of the resulting tax liability, subject to the applicable requirements.
For international couples, however, the matrimonial property regime should also be examined. This can determine which part of an asset actually belonged to the deceased and therefore forms part of the taxable estate.
06/
If you live abroad additional administrative requirements may apply.
In particular:
07/
For UK nationals, Brexit did not remove the possibility of accessing applicable Spanish regional tax benefits. The treatment of non-EU residents had already been affected by the Spanish courts before Brexit.
The precise tax position, however, should always be assessed according to the circumstances of the particular estate.
08/
Consider a UK-resident child inheriting a €300,000 apartment in Málaga from a parent who was resident in Andalusia.
The inheritance would need to be analysed taking into account, among other factors:
1. The relationship between the deceased and the heir.
2. The residence of the deceased and the heir.
3. The location and value of the assets forming part of the estate.
4. The applicable Autonomous Community legislation.
5. Any available reductions and tax benefits.
6. Any potential foreign tax implications.
If the Andalusian rules apply, a child would generally fall within Group II and may benefit from the applicable Andalusian tax reductions up to 1.000.000€ and 99% bonification.
Therefore, none Inheritance tax would be paid on this case.
The final tax liability must, however, be calculated from the complete estate and the specific circumstances of the inheritance.
09/
In many cases, you do not need to travel to Spain to deal with the inheritance.By granting us a Power of Attorney, duly executed and apostilled or legalised where required, we can generally handle the necessary procedures on your behalf, including obtaining your NIE, obtaining the relevant certificates, arranging the inheritance deed, dealing with the applicable tax filings and completing the necessary Land Registry procedures.
This allows international heirs to manage their Spanish inheritance remotely, subject to the particular requirements of each estate.
No, not since 2015 for EU/EEA residents and not since 2018 for non-EU residents. Non-residents are entitled to apply the same regional tax rules, including reliefs like Andalucía’s 99% bonification, as a resident of that region.
The tax rules themselves are now the same for both. The difference is administrative: non-EU nationals generally need to appoint a fiscal representative in Spain in addition to obtaining an NIE, which EU nationals don’t need.
On the property’s official reference value (valor de referencia) or its market value if higher, using the tax rules of the Spanish region where the property is located, the same calculation a resident heir would face.
Yes. Spouses fall into a favourable kinship group with access to the highest reductions and, in regions like Andalucía, a 99% relief, though the couple’s matrimonial property regime affects exactly what is taxed as “inherited”.
Yes. A Power of Attorney allows a Spanish lawyer to handle the NIE application, notarial acceptance, tax filing and payment entirely remotely.
– Court of Justice of the European Union, Commission v Spain, Case C-127/12, judgment of 3 September 2014.
– Ley 29/1987, de 18 de diciembre, del Impuesto sobre Sucesiones y Donaciones, Disposición Adicional Segunda (as amended, effective 1 January 2015).
– Tribunal Supremo, judgment of 19 February 2018, extending equal treatment to non-EU resident heirs.
– Decreto Legislativo 1/2018, Andalucía (regional inheritance tax reliefs).
