Inheriting or receiving a gift between Spain and abroad raises important tax questions. Where is the tax paid? What procedures are required? This article explains how Inheritance and Gift Tax (ISD) works when you live in Spain and inherit abroad, 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.
How to declare an international inheritance in Spain
In case of inheritance, you have 6 months from the date of death (extendable up to 6 additional months) to file the self-assessment.
Form 650 is used for inheritance tax returns (inheritances) and Form 651 for donations. Failure to file may result in penalties and surcharges, even if there is no amount due. If your case involves a donation, we recommend reading this blog post: Donations received from abroad: procedures and taxes in Spain
When filling out the Inheritance Tax form, the deceased's ID/NIE number is requested. This is a design flaw from when the form was created, as it didn't account for the possibility of inheritances being received from abroad. Solving this isn't straightforward, especially since each autonomous community handles it differently. If you're experiencing this issue, MBT Abogados can help.
MBT Abogados provides the service of filing the Inheritance Tax (Form 650) with the Tax Agency of your autonomous community of residence.
Who is affected by this tax?
Tax Residents: The Inheritance and Gift Tax affects tax residents in Spain. It does not matter if the assets are in Colombia, France, Argentina, Italy, or another country, nor the nationality or place of residence of the deceased. What is taken into account is the tax residency 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 abroad 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 your country. More information on our website: How to create a power of attorney in Spain for use abroad.
What to declare in Form 720 after an inheritance abroad
If the inherited wealth is worth more than €50,000 and you want to keep it in your country, you will have to inform the Spanish government. There is an obligation to declare assets abroad, through the Form or Model 720. The fines for not declaring are very high. More information on our website: Declaring assets abroad (Form 720): guide for residents in Spain
International inheritances: how taxes are coordinated between countries
Being a resident in Spain means paying taxes on income received abroad. The vast majority of Latin American and European countries have signed a Double Taxation Agreement with Spain. This means that if you have paid inheritance tax in your home country, you can claim a tax exemption in Spain. However, we recommend consulting with a professional before filing any tax returns, both in your home country and in Spain.
MBT Abogados offers tax advisory services for inheritances. Consultations can be held at our Barcelona office or via video conference. More information on our website: Taxes for foreigners in Spain: Complete tax guide 2026
Inheriting in Spain, living abroad
Living abroad and receiving an inheritance in Spain is no longer as common as it was 40 or 50 years ago. But it still happens. In these cases, the procedure is more complex, and the steps to follow are:
- 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 the country 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 submission of the corresponding tax forms (Form 650 and Form 651).
- 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 specializing in services for foreign living in Spain. We offer 45 and 60-minute appointments, depending on the subject matter and complexity of the consultation. Our fees are €115 and €150 respectively. Consultations can be held at our office in Barcelona or via videoconference. You can contact us by email or Whatsapp to book an appointment.
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Frequently Asked Questions (FAQs) / International Inheritances in 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. - Do I need the deceased's NIE number?
Yes, even though it doesn't make sense, that's how it is. Solving this so you can file your tax return isn't always easy. If you have this problem, we at MBT Abogados can help you. - 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.
