Understanding Inheritance Tax in Andalucia, Spain, doesn’t have to be complex.
This article aims to clarify common misunderstandings about Inheritance Tax in Spain and provide an updated overview of Inheritance Tax in Andalucia.
Understanding inheritance tax in Andalucia doesn’t have to be complex.
Once considered one of Spain’s most punitive regions for succession tax, Andalucia has transformed into a tax haven for most families.
This definitive guide explains everything you need to know about the current rules, including the 99% tax relief that has been a game-changer for residents and non-residents alike.
We will cover the simple answer first, then show you how to calculate the tax for your specific situation, and finally provide a detailed overview of the underlying national Spanish tax laws for complete context.
Let’s get straight to the point.
For most direct family members, the tax burden on an inheritance in Andalucia is now close to zero.
The current system provides two massive benefits for beneficiaries in Groups I and II (spouses, children, parents):
Scenario A: A €1.8 Million Estate. A daughter inherits a villa valued at €1.8M. The first €1M is tax-free. Tax is calculated on the remaining €800,000. Thanks to the 99% relief, her final bill is a testimonial amount (e.g., ~€2,000) instead of a life-changing six-figure sum.
Scenario B: The €900,000 Inheritance. A registered partner (pareja de hecho) inherits €900,000. Because this is below the €1M threshold, they pay €0 in inheritance tax.
With each region in Spain having the right to set its own special rules in relation to Inheritance Tax, the rates and exemptions have become highly politicised. Depending on the party and their political affiliation in power in each region, you can see changes in exemptions or levels of taxation.
Historically, Andalucia had a high inheritance tax burden under the Spanish Socialist Worker’s Party. However, since 2018, politics in Andalucia have been more center-right, which therefore introduced substantial tax exemptions, drastically reducing the inheritance tax in Andalucia.
This means that although such a favourable situation is in place, a change in the political situation might mean a change in the favourable nature of Inheritance tax in Andalucia.
These powerful benefits apply to spouses, registered partners, children, and parents. A critical point is that residency in Spain is not required.
Following a Spanish Supreme Court ruling, these regional deductions are available not only to EU/EEA residents but also to residents of non-EU countries.
This is a vital detail for our clients from the UK, USA, and Canada inheriting assets in Andalucia.
For those who want to understand the calculation process, here is a simple breakdown.
For beneficiaries in Groups I & II (spouses, children, parents), calculating your final tax liability is remarkably straightforward.
Step 1 – Determine the Net Value: Calculate the total market value of the assets you are inheriting, then subtract any associated debts (like a mortgage).
Step 2 – Apply the €1 Million Allowance: Subtract the €1,000,000 tax-free allowance from the net value.
Step 3 – Calculate the Final Tax:
For beneficiaries in Group III (siblings, nephews) and Group IV (cousins, unrelated persons), the process is more complex and involves the full national calculation method, which we detail in the “Foundations” section below.
Do you require a quick and easy calculation? For an instant estimate based on your situation, use our free Spanish Inheritance Tax Calculator.
Understanding the practical steps and deadlines is crucial for a smooth inheritance process.
Inheritance tax must be filed and paid within six months of the date of death. It is possible to apply for a six-month extension, provided the request is made within the first five months of the initial period.
This is a critical point: assets belonging to the deceased, such as bank accounts or property, will be frozen upon death.
They will not be released to the beneficiaries until the inheritance tax has been paid in full and the deed of acceptance of inheritance is completed.
The “Raw Tax” is what the national law established at the amount of tax you should pay after the initial allowance.
| Inheritance Range | Tax Rate |
|---|---|
| Up to €7,993 | 7.65% |
| €7,993 to €31,956 | 7.65% to 10.2% |
| €31,956 to €79,881 | 10.2% to 15.3% |
| €79,881 to €239,389 | 15.3% to 21.25% |
| €239,389 to €398,778 | 25.5% |
| €398,778 to €797,555 | 29.75% |
| Above €797,555 | 34% |
The final national element to apply when considering inheritance tax in Spain is the ISD Multiplicater
| Pre-existing net wealth (Euro) | Group I and II | Group III | Group IV |
|---|---|---|---|
| 0 - 402,700 | 1.00 | 1.5882 | 2.0 |
| 402,700 - 2,007,400 | 1.05 | 1.6676 | 2.1 |
| 2,007,400 - 4,020,800 | 1.1 | 1.7471 | 2.2 |
| 4,020,800 + | 1.2 | 1.9059 | 2.4 |
Each autonomous region in Spain has its own reductions, deductions and allowances.
Since January the 1st 2018, in Andalucia, the personal allowance for those that can be found in the Kinship groups I and II increased to a €1,000,000 tax-free allowance per beneficiary, with a 99% tax relief on any amount above that threshold.
But this was not always the case.
With each region in Spain having the right to set their special rules in relation to Inheritance Tax, the rates and exemptions have become highly politicised. Depending on the party and their political affiliation in power in each region, you can see changes in exemptions or levels of taxation.
Historically, Andalucia had a high inheritance tax burden under the Spanish Socialist Worker’s Party. However, since 2018 politics in Andalucia have been more center-right, which therefore introduced substantial tax exemptions, drastically reducing the inheritance tax in Andalucia.
This means that although such a favourable situation is in place, a change in the political situation might mean a change in the favourable nature of Inheritance tax in Andalucia.
Those who can benefit from this generous tax allowance and exemption are first and second-degree relatives, specifically spouses and children. Other relatives like siblings and nephews are not eligible for the same benefits.
It’s important to know that, de facto couples (parejas de hecho) are treated as married couples for inheritance tax purposes, provided they are registered in the Andalusian Registry of De Facto Couples (Registro de Parejas de Hecho).
Need Expert Andalucian Inheritance Tax Advice?
For those who fall outside Groups I & II, or for anyone seeking a complete understanding, it’s important to know the national framework that underpins the regional rules.
Inheritance Tax in Spain (Impuesto de Sucesiones y Donaciones) is a national tax, but each autonomous region has the power to modify the rules.
Andalucia has used this power to create the highly beneficial system detailed above. If you do not qualify for the regional benefits, the national rules apply.
Spanish tax authorities have categorised the relationship between the taxpayer and the person making the gift/leaving the inheritance into 4 groups.
Do you want a deeper understanding of the national laws? Read our comprehensive and detailed guide on inheritance tax in Spain on the national scale.
Under national law, each group receives a much smaller tax-free allowance for inheritances:
After deducting the small national allowance, this table is used to find the “raw tax” figure.
Note: This step is largely irrelevant for Group I & II beneficiaries in Andalucia.
| Amount | To (Euro) | Rate (Percentage %) | Beginning Scale (Euros) |
|---|---|---|---|
| 0.00 | 7,993.46 | 7.65 | |
| 7,993.46 | 7,987.45 | 8.50 | 611.50 |
| 15,980.91 | 7,987.45 | 9.35 | 1,290.43 |
| 23,968.36 | 7,987.45 | 10.20 | 2,037.26 |
| 31,955.81 | 7,987.45 | 11.05 | 2,851.98 |
| 39,943.26 | 7,987.46 | 11.90 | 3,734.59 |
| 47,930.72 | 7,987.45 | 12.75 | 4,685.10 |
| 55,918.17 | 7,987.45 | 13.60 | 5,703.50 |
| 63,905.62 | 7,987.45 | 14.45 | 6,789.79 |
| 71,893.07 | 7,987.45 | 15.30 | 7,943.98 |
| 79,880.52 | 39,877.15 | 16.15 | 9,166.06 |
| 119,757.67 | 39,877.16 | 18.70 | 15,606.22 |
| 159,634.83 | 79,754.30 | 21.25 | 23,063.25 |
| 239,389.13 | 159,388.41 | 25.50 | 40,011.04 |
| 398,777.54 | 398,777.54 | 29.75 | 80,655.08 |
| 797,555.08 | and beyond | 34.00 | 199,291.40 |
Finally, the raw tax figure is multiplied by a coefficient based on the beneficiary’s kinship group and pre-existing wealth. This can increase the final bill significantly, especially for Groups III and IV.
| Pre-existing net wealth (Euro) | Group I and II | Group III | Group IV |
|---|---|---|---|
| 0 - 402,700 | 1.00 | 1.5882 | 2.0 |
| 402,700 - 2,007,400 | 1.05 | 1.6676 | 2.1 |
| 2,007,400 - 4,020,800 | 1.1 | 1.7471 | 2.2 |
| 4,020,800 + | 1.2 | 1.9059 | 2.4 |
If you wish to see this in action with expert analysis? You can view our free webinar on Spanish Inheritance Tax.
Here are answers to some of the most common questions about inheritance in Andalucia and Spain.
For direct relatives (spouses, children, parents), the tax is virtually eliminated.
Beneficiaries receive a €1,000,000 tax-free allowance. For any amount above this, a 99% relief is applied to the tax bill, making the final payment minimal.
Yes.
If the assets (e.g., a property) are located in Andalucia, the tax must be paid.
However, the good news is that non-residents from both EU and non-EU countries (like the UK and USA) are fully entitled to claim Andalucia’s beneficial tax allowances and reliefs.
If you are non-resident our article on Navigating Inheritance Tax in Spain for Non-Residents.
This varies dramatically by region.
In Andalucia, a spouse or child can inherit up to €1,000,000 tax-free.
Under the general national rules, which apply in regions without such generous deductions, the tax-free allowance for a spouse or child is only €15,957.
Yes, a significant portion.
Spanish succession law includes “forced heirship” (legítima), meaning children are legally entitled to inherit two-thirds of the estate.
This right is protected by law and generally cannot be removed by a will.
Andalucia also offers a 99% relief on the tax for lifetime gifts made to beneficiaries in Groups I and II.
This makes it extremely tax-efficient to pass on wealth to your children or spouse during your lifetime.
We also have an article explaining the similarities between gift tax and inheritance tax in Spain
Only if they are officially registered as a civil partnership (pareja de hecho) in the Andalusian registry.
If not, the surviving partner is treated as “unrelated” (Group IV) and will face a very high tax bill without the generous allowances.
Navigating the nuances of regional tax benefits, national laws, and succession rules requires expert planning.
At Private Client Consultancy, we ensure your estate is structured in the most tax-efficient way possible, giving you and your heirs peace of mind.
Our team of wealth managers and legal experts are specialists in inheritance tax and wealth management in Andalucia.
We provide clarity and confidence for your financial future.
Get in touch today for a free and confidential consultation.
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