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TAXES

What’s the inheritance tax in each region of Spain?

Inheritance tax varies greatly in Spain depending on what region you or your relations live in. Find out what the rates are in your area in 2022.

old couple in Spain
Inheritance tax in Spain. Photo: Christian Bowen / Unsplash

Spain’s inheritance or succession tax, known as ‘impuesto de sucesiones‘ is both complex and controversial, but it’s important to understand how it works in order to avoid any unfortunate financial surprises when a loved one with a connection to Spain passes away. 

Spanish inheritance tax is decided by the Spanish State but all of the country’s 17 regions have the right to change these rules to make them more beneficial or detrimental to heirs, luckily the general trend is towards the former. 

The succession tax rates will differ depending on how much is inherited, ranging from 7.65 percent on the first €7,933 up to 34 percent on €797,555+. 

There are many factors to consider, such as which category heirs and other beneficiaries fall into, or the fact that in Spain the spouse of the deceased is also subject to inheritance tax, which is not the case in the UK and many other countries.

What are the different groups of heirs in Spain?

As mentioned above, there are several categories or groups that heirs can fall into and this will depend on how much allowance they can benefit from. The groups are the following:

Group 1: Children under 21 years of age

Group 2: Children over 21 years of age, spouses and parents

Group 3: Siblings, nieces, nephews, as well as aunts and uncles

Group 4: Cousins or more distant relations

EXPLAINED: How choosing the right region in Spain can save you thousands in inheritance tax

What are the inheritance rates in my region?

Andalusia

In Andalusia, the inheritance tax rate varies between 7 percent and 36 percent, depending on the value of the inheritance. However, recently the Andalusian government approved, through a Royal Decree, a reduction of 99 percent, both for inheritance and gift tax for those who are included in groups 1 and 2.

Aragón

In Aragón there is 100 percent discount on the tax base, with a limit of €3,000,000 for descendants under the age of 21 or for those that have a disability. In addition, the spouse, parents or descendants of the deceased may also benefit from a reduction of 100 percent of the tax base.

Asturias

In Asturias there is an allowance of €300,000 for those groups 1 and 2. For all other groups, it establishes various reductions included in the state regulations. In addition, in case of inheriting a home, the bonus will be between 95 and 99 percent, depending on its value.

Balearic Islands

In the Balearic Islands, for those in groups 1 and 2, deductions of €25,000 are applied, plus €6,250 per year that the taxpayer is under the age of 21, up to a maximum of €50,000. For those in group 3, a deduction of €8,000 is applied and for those in group 4, it’s €1,000. An allowance of €48,000 will also be made for those with disabilities.

Basque Country

For those in groups 1 and 2 in the Basque Country, inheritances with an amount less than €400,000 are not required to pay taxes. When the amount is greater than €400,000, a tax rate of 1.5 percent will be applied.

READ ALSO: Why you should move to this region in Spain if you want to pay less tax

Canary Islands
Those in group 1 get an allowance of €47,859, while those in group 2 get an allowance of €15,957. Those in group 3 will get €7,993, while those in group 4 get no allowance at all. After the deduction, inheritance tax rates are calculated on the remaining balance which range between 7.65 percent and 34 percent on anything above €797,555.

Cantabria

For those in group 1, there is a reduction of €50,000 plus €5,000 for each year the taxpayer is under 21. For those in group 2, it’s also €50,000 and for those in group 3, it’s €25,000.

Castilla La-Mancha

In Castilla La-Mancha those in groups 1 and 2 will benefit from discounts ranging from 80 percent to 100 percent, depending on the amount of the payable base.

Castilla y León

Castilla y León allows reductions for children spouses and parents. Those in groups 1 and 2 will benefit from an allowance of €60,000. An additional reduction of €6,000 will be applied for each year the taxpayer is under the age of 21. A variable reduction will also be applied, which is calculated as the difference between €400,000, plus the sum of the previous amounts and the state deductions.

Catalonia

In Catalonia, spouses will receive a bonus of 99 percent and the rest of the heirs in groups 1 and 2 may apply a bonus that varies between 57 percent and 99 percent, depending on the tax base.

Extremadura

A bonus of 99 percent is applied for amounts of up to €300,000 euros between parents, children and spouses.  

Galicia

In Galicia, heirs in group 1 have an allowance on amounts up to €1,000,000, plus there is a reduction of €100,000 for each year the beneficiary is younger than 21, with a limit of €1,500,000. For those in group 2, the reduction varies between €900,000 and €400,000, depending on the taxpayer’s age. In the cases of groups 3 and 4, the bonus will be €16,000 or €8,000. The applicable rate in Galicia stands at between 5 and 18 percent, which is well below the rest of the regions. 

La Rioja

Those who inherit in La Rioja benefit from a deduction of 99 percent of the tax quota if the tax base is less than or equal to €500,000. The deduction will be 98 percent for amounts that exceed €500,000.

Madrid

Madrid applies a discount of 99 percent of the tax quota for taxpayers included in groups 1 and 2. In addition, for the heirs included in group 3, it establishes a discount of 15 percent or 10 percent, depending on what relation they are to the deceased.

Murcia

In the region of Murcia, the law includes a deduction of 99 percent for those in groups 1 and 2. Likewise, for the rest of the heirs, it also recognises different reductions depending when the money is inherited and the amount to be received.

Navarre

In Navarre no discounts are applied, but how much tax varies according to what group you fall under. Spouses for example have a rate of 0 percent up to €250,000, and 0.80 percent from there upwards. In the case of descents and parents, the applicable rate varies between 2 percent and 16 percent.

Valencia

In Valencia discounts of 75 percent are applied for those in group 1 or 50 percent for those in group 2. In case the of those with disabilities, the taxpayer will also receive a bonus of 75 percent.

Case study example

For example, in the case of a 30-year-old son who inherits assets worth €800,000 euros, the most amount of tax would be paid in Asturias, with at €103,135.48; followed by Castilla y León €81,018.76; Valencian €63,193.76; Aragon €55,466.81; La Rioja €32,342.86; Castilla-La Mancha €31,759.23 and the Canary Islands €31,748.63. 

These regions would be followed by Navarre €17,000; Catalonia €9,796.89; the Balearic Islands €5,950; the Basque Country €3,150; Murcia €1,640.49; Extremadura €1,587.96 and Madrid €1,586.04). Andalusia, Cantabria and Galicia have a net quota of 0.

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For members

PADRON

Can I get my padrón online in Spain?

The padrón certificate is a handy multipurpose document you receive when you register with your local town hall in Spain. It can often be frustrating having to apply for it in person, so are you able to apply online instead?

Can I get my padrón online in Spain?

Empadronamiento is a registration process which adds you to the census of your local area. The associated certificate – el padrón – provides you with official proof of your address.  

For your local town hall, or ayuntamiento in Spanish, it serves the purpose of knowing exactly how many people are living in the area, which in turn helps them receive adequate funding for public services.  

But your padrón certificate is very useful for you too, as many official processes in Spain require you to prove your address.

For example, you may need it to get your driving licence or to register as an autónomo (self-employed). 

READ ALSO: 16 things you should know about Spain’s padrón town hall registration. 

Technically, you should apply for your padrón within the first three months of moving to Spain, or if you move home to a different area within Spain.

You may also need to reapply for it if you need it for another official process and it is older than three months.

If you’ve already been living in Spain, you’ll know that getting documents such as your padrón can take longer than you probably hoped for. This can be very frustrating, particularly having to first get a prior appointment (cita previa) from your town hall, as this ends up stringing out the process.

Being able to apply online instead of in person could save you a lot of time and should make the whole process easier, but is it possible?

Can you apply for the padrón online in Spain?

The short answer is yes, it is often possible to apply for your padrón certificate online. However, it may depend on the area you live in.

For example, if you live in Barcelona or Madrid, you are able to apply for your certificate for the first time online or renew it online too.

Those in Barcelona should visit the relevant page of the Ajuntament website here where you can fill out and submit the online form.

Those in Madrid can fill out and apply for the form here, while in Valencia, you can apply via the following link here.

You will simply need to follow all the steps, filling out all your personal details as you go and then submitting it at the end. 

Remember, you will also need to have digital copies of your ID documents such as passport, TIE or other residency cards, the deeds if you own the property where you live or your rental contract if you are renting.

You may need a digital certificate or [email protected] to be able to officially identify yourself during online processes, but this may not be necessary for all town halls, it will depend on what type of system they have set up.

For example, if you live in Granada and have your digital certificate, you can apply online, but if you don’t, then you will need to apply for it in person.

In Madrid, those who don’t have a digital certificate can apply for the padrón via e-mail.

In some other areas, you may be able to apply to renew your certificate online, but if you’re applying for the first time then you will still need to go in person.

As is so often the case with official matters in Spain, there is no standard procedure which applies across the board for getting a padrón online.

You may ask one civil servant who tells you it is possible, then turn round and quiz another funcionario, who completely rules it out. Perhaps you’re better off first Googling “solicitar padrón a través de internet” (apply for padron online), plus the name of your town to see if it is an option.

‘Spain is different’, Spaniards often say in English when being critical about their country. When it comes to applying for a padrón online, Spain and its 8,131 town halls most certainly are different.

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