Inheritance and Gift Tax in Spain – key facts for property owners
What is Inheritance and Gift Tax (ISD)?
Spain levies Impuesto sobre Sucesiones y Donaciones (ISD) on assets transferred by inheritance or gift. Spanish-located property is always taxable here, regardless of the heirs’ residence. Payment is made to the regional authority where the property lies.
How is the tax calculated?
The calculation depends on the property value, family relationship and regional allowances. Andalusia currently offers some of the most generous reductions in Spain, making inheritance and gifting favorable for families.
Who pays and when?
Heirs or recipients are liable. Inheritances must be declared within six months of death (extensions possible). Gifts within 30 days of transfer. Late declarations mean penalties and interest.
FREQUENTLY ASKED QUESTIONS
Do children pay inheritance tax?
Yes, but large Andalusian allowances often mean very little or no tax for close relatives.
Are foreign wills valid in Spain?
They are, but it is recommended to sign a Spanish will for assets located in Spain to simplify the procedure and reduce costs.
Is gift tax the same as inheritance tax?
Yes – both fall under ISD, the only difference is timing and paperwork.
Next steps
Want to understand how inheritance or gift tax may affect your family property in Spain? Contact us at Sun Properties Marbella for advice.
