Inheriting or receiving a donation between Spain and Argentina raises important tax questions. Where is the tax paid? What are the steps to be taken? In this article we explain how the Inheritance and Gift Tax (ISD) works when you live in Spain and inherit in Argentina, or vice versa.
The Inheritance and Gift Tax is a direct tax levied on capital gains obtained by inheritance or gift. In Spain, state regulations regulate the taxable base and the points of connection, while the autonomous communities manage the allowances, reductions and tax rates.
Even if you live abroad, if you receive assets in Spain (properties, shares, cash), you may be subject to this tax. Knowing your tax liability and possible regional allowances allows you to plan better and avoid unpleasant surprises.
Is it mandatory to file the Inheritance Tax even if there is no tax to pay?
Yes, in Spain the presentation of the Inheritance and Gift Tax is mandatory in all cases, even when the result is that there is no tax to pay, either because of regional tax exemptions or because of being within the minimum exemptions.
Declaring an Argentinean inheritance in Spain: steps and documentation
In case of inheritance, you have 6 months from the date of death (extendable up to 6 additional months) to file the self-assessment.
In case of donation, the term is 30 working days from the formal acceptance of the donation.
Form 650 for inheritances (successions) and Form 651 for donations are used to file the tax. Failure to file may result in penalties and surcharges, even if there is no amount to be paid.
Who is affected by this tax?
Tax residents: Inheritance and Gift Tax affects tax residents in Spain. It does not matter whether the assets are in Argentina or another country, nor the nationality or place of residence of the deceased. What is taken into account is the place of tax residence of the person receiving the inheritance. If it is in Spain, it must be filed in Spain.
Non-residents: If you live abroad and inherit assets in Spain, you may also be subject to this tax. In any case, non-residents can apply to the tax allowances of the autonomous communities, depending on the place of residence of the deceased or location of the property.
Inheritance allowances in autonomous communities
The Inheritance and Gift Tax in Spain is a devolved tax, which means that each autonomous community has broad powers to regulate it, establishing its own allowances, reductions and, in some cases, tax rates.
Although many communities apply very high bonuses, the tax base follows the state rate, which is progressive, with rates ranging from 7.65% to 34%, depending on kinship with the deceased, amount of inherited assets and the previous estate of the beneficiary.
On this rate are applied the allowances and reductions of each community: Many communities offer allowances of 99 % or even 100 % for spouses, descendants and ascendants. Madrid, Andalusia, the Balearic Islands and the Canary Islands apply exceptional reductions.
Due to the continuous legislative changes, it is strongly recommended to consult a tax advisor to know the exact regulations applicable to each case.
If you inherit in Argentina and you are not willing or able to travel, you will have to make a power of attorney before a notary in Spain. Thus, a relative or friend will be able to sign on your behalf in Argentina. More information on our website: How to make a power of attorney in Spain for use in Argentina
What to declare in the Form 720 after an inheritance in Argentina
If the inherited wealth is worth more than €50,000 and you want to keep it in Argentina, you will have to inform the Spanish government. There is an obligation to declare assets abroad, by means of Form or Model 720. The fines for not declaring are very high. More information on our website: Why do you have to declare your assets in Argentina if you live in Spain?
International inheritances: how taxes are coordinated between countries
Being a resident in Spain implies paying taxes on income received abroad. Argentina and Spain are governed in tax matters by the Agreement to avoid double taxation. This means that if you have paid inheritance taxes in Argentina, you can ask in Spain not to pay the same tax. But we recommend to consult a professional before starting the declarations, both in Argentina and in Spain.
MBT Abogados offers inheritance tax consultation services at our Barcelona office or via videoconference. Appointments can last 45 or 60 minutes, with fees of €115 and €150 respectively. More information is available on our website: Guide to avoid getting lost with taxes between Argentina and Spain.
Inheriting in Spain, living in Argentina
Living in Argentina and receiving an inheritance in Spain is no longer as common a situation as it was 40, 50 years ago. But it still happens. If you lives in Argentina and a family member dies in Spainthe procedure is more complex and the steps to follow are as follows:
- Obtain a certificate of last will and testament in Spain, to see if a will exists.
- Request a life insurance certificate, in case the deceased left any beneficiaries.
- If there is a will, it is executed. The execution of the will includes the registration of the real estate in favor of the heir or heirs.
- If there is no will, the ab instentato procedure is carried out to determine who the heirs are.
- Calculating and settling inheritance tax.
An international heritage has its own rules. MBT Abogados takes care of all the arrangements. Also we can make the formalities without the need for the heir to travel to Spain, by granting powers of attorney to do so. This saves money and time.
An inheritance includes all the assets of the deceased: real estate, bank accounts, life insurance, stocks, bonds, cars, shares in companies. Among our services, we offer to take care of the sale of inherited real estate, advice on the sale of all types of assets, and transfer of the money to the account in Argentina to be indicated to us by the heir.
How can we help you?
In MBT Abogados, we have experience advising foreign residents in Spain in matters of inheritance and donations. We accompany you in:
- Calculation of possible taxes according to your profile and applicable bonuses.
- Selection of the most beneficial regional regulations according to the points of connection (place of the deceased or well).
- Preparation and filing of the corresponding tax forms.
- Coordination with consulate or legal agency for non-residents.
- Advice to reduce tax risks and take advantage of available legal benefits.
We are a law firm in Barcelona, specializing in services for Argentinians. Contact us through email or Whatsapp to explain your case to us, and if we can give you a direct answer, we will do so free of charge. Perhaps your situation is more complex. In that case, a video conference or in-person appointment with a lawyer is necessary for a detailed analysis of your case. We offer appointments of 45 and 60 minutes, depending on the complexity of the consultation. The fees are €115 and €150 respectively.
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Frequently Asked Questions (FAQs) / Inheritances Argentina - Spain
- Does Inheritance Tax apply if I give property or money to family members from abroad?
Yes, if the assets are located in Spain (e.g. real estate), the self-assessment must be filed within 30 working days, even if the donee does not reside in Spain. - Can I apply for a rebate if I live outside the EU?
Yes, following Supreme Court decisions and legal reforms, non-residents from any country can benefit from regional incentives, depending on the applicable connection point. - Which form is used for tax filing?
Form 650 for inheritances (successions). Form 651 for donations. - What happens if I do not file the tax within the legal deadline?
Failure to file within the established deadline may result in surcharges, interest and penalties, even if the tax to be paid is zero. In addition, there may be complications if you later want to sell or register the inherited or donated property, since the Administration will require proof that the tax was filed correctly. - How does this tax affect me if I have assets in several countries?
If you reside in Spain, you must declare the inheritance or donation of all worldwide assets. If you do not reside in Spain, only those located in Spain. In cases of assets in several countries, it is essential to review double taxation agreements, to avoid being taxed twice for the same asset. Specialized legal advice can help you plan and optimize your global tax burden.
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