Inheritance Tax in Spain varies significantly between autonomous communities, and Catalonia is no exception.
The region applies its own regulations that differ considerably from national norms and those seen in areas like Andalusia or Valencia.
If you are a resident of Catalonia or inheriting assets from someone who was, it’s important to understand how the region’s rules affect your situation.
Spain’s Inheritance Tax (ISD – Impuesto sobre Sucesiones y Donaciones) is a state tax that is regulated and collected at the regional level.
While the national government sets the baseline, each autonomous community can apply its own reductions, rates, and rules. (See our articles on IHT in Andalucía and IHT in Valencia)
In Catalonia, the regional regulations override the national scale, often making the inheritance process more complex, especially for non-residents or expatriates.
This makes it essential to assess inheritance planning specifically under Catalonia’s regional tax code, not just the national framework.
Inheritance Tax in Catalonia is paid by the beneficiaries, not the estate.
This is an important distinction from systems like that of the UK.
The amount due depends on the relationship between the deceased and the heir, the value of the inheritance, and any applicable reductions or allowances.
Spanish tax authorities have categorised the relationship between the taxpayer and the person making the gift/leaving the inheritance into 4 groups.
You can find a full breakdown of categories and how they apply across Spain in our comprehensive guide to Spanish Inheritance Tax.
Raw Tax Rate and Coefficient Multiplier
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 |
Catalonia, like each of Spain’s 17 autonomous communities, exercises significant autonomy when it comes to Inheritance Tax.
As we have shown and explained, national legislation sets out a baseline structure, the Catalan regional government applies its own allowances, discounts, and tax bands, making the effective tax burden here different from regions like Andalusia, Madrid, or Valencia.
The main differences include:
As a result, those inheriting in Catalonia may find themselves liable for higher tax bills than they would elsewhere in Spain, particularly if their estate planning has not been tailored to Catalonia’s specific rules.
The tax rate in Catalonia is progressive, ranging from 7% to 32%, depending on the value of the assets inherited.
However, various reductions and multipliers based on the heir’s relationship to the deceased and their pre-existing wealth also apply.
Allowances reduce the taxable base of the inheritance before any tax is calculated. In Catalonia, these are grouped according to the heir’s relationship to the deceased.
Once the above allowances are applied, Group I and II heirs may receive a discount of 99% on the tax due if the inheritance value is under €100,000.
This discount decreases as the value of the inheritance increases.
Here’s an approximate breakdown:
| Taxable Base (after personal reduction) | Discount Rate |
|---|---|
| Up to €100,000 | 99% |
| €100,000 – €200,000 | 95% |
| €200,000 – €500,000 | 90% |
| €500,000 – €2,000,000 | 80% |
| Over €2,000,000 | 60% |
Disabled beneficiaries can claim up to:
€275,000 (disability ≥65%)
€650,000 (disability ≥33% with certified support needs)
Main Residence Reduction:
If the main residence is inherited by a spouse, child, parent, or cohabiting sibling and kept for 5 years, a 95% reduction applies on its value, capped at €500,000 per heir, with a limit of €180,000 per person.
Do you Need Expert Spanish Inhertiance Tax Advice?
To understand how much Inheritance Tax is due in Catalonia, it helps to follow a step-by-step process, from asset valuation to final tax liability.
We however recommend you get in touch with us if you want to ensure accuracy and assistance.
Begin by establishing the total value of the estate, including:
Identify the heir’s group:
This affects the allowances and tax rates as seen above
Apply the relevant personal reductions (as above).
These reduce the taxable base before tax is calculated.
If you inherit the main residence and qualify for the 95% reduction, apply this now, but remember the five-year ownership condition.
Once you have deducted the personal allowance available from the value arrived at in stage 1, you need to calculate the “raw tax figure” from the following table:
| Taxable Base (after reductions) | Tax Rate |
|---|---|
| €0 – €50,000 | 7% |
| €50,000 – €150,000 | 11% |
| €150,000 – €400,000 | 17% |
| €400,000 – €800,000 | 24% |
| Over €800,000 | 32% |
The tax calculated is then adjusted based on the pre-existing wealth of the heir and their relationship to the deceased:
| 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 |
Multiply the raw tax by the appropriate coefficient.
Once the final tax is calculated, apply Catalonia’s progressive discount system, available for Group I and II heirs:
| Taxable Base (after personal reduction) | Discount Rate |
|---|---|
| Up to €100,000 | 99% |
| €100,000 – €200,000 | 95% |
| €200,000 – €500,000 | 90% |
| €500,000 – €2,000,000 | 80% |
| Over €2,000,000 | 60% |
Note: These discounts only apply if you are a spouse, child, or parent of the deceased. Group III and IV heirs do not benefit from this.
If you are unsure of your final liability, you can use our free Spanish Inheritance Tax Calculator for an estimate.
Gifts During Lifetime:
Gift Tax in Catalonia operates similarly to Inheritance Tax, with slightly different allowances. It is important to assess whether gifting assets now offers a more favourable tax outcome.
Life Insurance:
Life insurance proceeds may be taxed, but specific policies that meet criteria under Spanish regulations may benefit from a reduction of up to €9,195.49 per beneficiary.
Foreign Assets and the Modelo 720:
If the deceased or the heir is a Spanish tax resident, and foreign assets were not declared via the Modelo 720, significant fines or additional liabilities could arise even if these assets are inherited.
Double Taxation Risk:
If the deceased was a UK resident or assets are located in another country, double taxation may apply. Although Spain and the UK do not have a double taxation agreement for Inheritance Tax, some unilateral relief may be available.
Time Limit for Declaration:
Inheritance Tax in Catalonia must be declared and paid within 6 months of the date of death. An extension can be requested before the deadline, but interest may still accrue.
Inheritance Tax in Catalonia is notoriously complex, particularly for expats with cross-border assets.
At Private Client Consultancy, we help you navigate each stage, ensuring you remain compliant while identifying every opportunity to reduce your liability.
Contact us today for a personal consultation with one of our experienced advisers.
Disclaimer: Tax laws, rates, and reliefs are subject to change and may vary depending on individual circumstances and residency status. Any information provided on this website is based on our understanding of current regulations (or the date of when the content was published) and should not be considered personalised financial or tax advice. As tax obligations can differ across regions, countries and evolve over time, we strongly recommend seeking professional advice tailored to your specific situation before making any financial decisions.
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