Inheritance tax in Spain

Since the ECJ ruling (Case C-127/12) regarding inheritance tax and gift tax for non-resident taxpayers in Spain, all heirs who inherit assets on Spanish territory are subject to the same tax laws for both non-residents and tax residents in Spain. In Spain, the respective autonomy statutes have their own regulations for any tax allowances in relation to inheritance and gift tax. This means that in the event of an inheritance, the heir must calculate the inheritance tax according to the regulations in the respective region.
As a result, the situation has improved considerably in many cases.

In most regions of Spain, there are significant tax benefits if the heir is a spouse or child of the deceased (tax groups I and II).

In Andalusia, for example, the current tax-free amount is 1,000,000.00 euros and in other regions a discount of up to 99% is granted on the tax payable.

Enormously high amounts, as were still payable before the ECJ ruling, no longer exist in many cases for inheritances among tax-privileged groups (spouses, children). The situation is different for inheritances between collateral relatives (e.g. siblings) and non-relatives or unmarried couples.

Whether and how much inheritance tax is payable in your case must be determined individually.

It is also important to know that there is no double taxation agreement between Germany and Spain with regard to inheritance tax. With regard to real estate assets, however, there is the possibility of offsetting, which can be applied for. The requirements for this are checked by the respective tax advisors. This requires coordination between the German and Spanish tax advisors, which we will be happy to do for you.