Spanish Inheritance Tax in Andalusia: What Your Heirs Pay

Who pays Spanish inheritance tax, and where

The heir pays, not the person who died. If your heirs live outside Spain, they pay here only on assets located in Spain, such as your home on the Costa del Sol.

If the deceased was not resident in Spain, the return is filed with the national Tax Agency on form 650. Even so, your heirs can apply the much more favourable Andalusian rules, because the home is in Andalusia.

How much is paid: allowances and relief in Andalusia

An example. Your daughter inherits half of a €400,000 home, so €200,000. With the allowance of up to €1,000,000, the taxable base drops to zero and she pays no inheritance tax. She will only have notary and land registry fees plus the municipal plusvalía.

If you or your heirs live outside Spain

Until 2014, non-residents paid under the national rules, which were far more expensive. The EU Court of Justice ruled this discriminatory and the law changed for EU and EEA residents.

In 2018 the Spanish Supreme Court extended that right to non-EU residents, such as British, American or Norwegian heirs. Today a non-resident heir can apply the Andalusian rules if the home is here.

• The rules of the region holding the highest-value asset in Spain apply.
• It is an option: you have to choose it when filing the return.
• Each heir needs an NIE to file and to register the inheritance.

A Spanish will and which law governs your estate

Make a will before a Spanish notary covering your assets in Spain. It costs between €50 and €100 and saves your heirs months of paperwork.

Under the EU Succession Regulation, the law of the country where you are habitually resident when you die applies. In your will you can choose the law of your nationality instead, even if you are British or from another non-EU country.

That choice matters. Spanish law requires a share to go to your children, the forced heirship, and many foreign laws do not. Tell the notary what you want for your family.

Deadlines and costs when inheriting a home in Andalusia

1. Certificates of death, last wills and life insurance. They are requested in Spain even if the death happened abroad.
2. Deed of inheritance before a notary, with the will and each heir's NIE.
3. Inheritance tax: 6 months from the date of death. You can ask for 6 more months if you apply within the first 5.
4. Municipal plusvalía: each heir pays it to the town hall. If there is no real gain, it can be zero.
5. Land Registry: register the home in the heirs' names.

If your family lives abroad, a power of attorney lets a lawyer handle all this without them travelling. We explain how in buying or signing with a power of attorney.