Inheritance tax in Spain for non-residents 2026

An overview of inheritance tax in Spain

Inheritance tax rules in Spain can be complex to understand, especially for non-residents inheriting assets or planning to pass on wealth to family members. If you’re a UK national who falls into this bracket, it’s essential to understand how Spanish inheritance tax might apply to your situation.

We’ve gathered some helpful insights about Spanish inheritance tax rules and how they may impact your estate. However, tax laws can be difficult to work through and often change. Take the time to consult a qualified tax professional to ensure you can make an informed decision tailored to your circumstances.

When it comes to managing your finances, Lumon is here to help. We’ve helped thousands of UK clients send money overseas safely and manage exchange rates when receiving or transferring inheritance funds between Spain and the UK.

Understanding inheritance tax in Spain

Inheritance tax (IHT) is a tax paid to the state on the property, possessions, savings, investments and pensions that individuals inherit. Most countries, including Spain, have their own inheritance tax system with different rules, rates and reliefs. 

While the Inheritance and Gift Tax Act sets the overall framework of the Spanish inheritance tax, each region has the authority to adjust the tax rates and reliefs that apply within its own territory.

Who needs to pay Spanish inheritance tax?

Inheritance tax in Spain applies to residents and non-residents, who inherit assets there. The tax liability depends on the residency status of the deceased and their beneficiaries, as well as the location of the assets.

Three key considerations:¹

1. Non-residents have to pay Spanish inheritance tax only on assets located in Spain.
2. In contrast to the UK, the obligation to pay inheritance tax in Spain lies with the person receiving the inheritance rather than on the estate itself.
3. The tax law applies to both Spanish nationals and expats, provided they are residing in Spain at the time of death.

If you are based in Spain or have properties in multiple countries, consider consulting a professional to understand which rules apply to you.

What is the rate of inheritance tax in Spain?

Inheritance tax rates

The Spanish government sets progressive inheritance tax band rates, which fall within seven brackets, depending on the amount of the inheritance:²

Value of inherited estate	Inheritance tax rate
€7,993 or less	7.65%
€7,993 to €31,956	8.50% to 11.05%
€31,956 to €79,881	11.05% to 16.15%
€79,881 to €239,389	16.15% to 25.50%
€239,389 to €398,778	25.5% to 29.75%
€398,778 to €797,555	29.75%
€797,555 or higher	34.00%

Calculating your Spanish inheritance tax liability

Here’s an overview of how to calculate your inheritance tax liability in Spain:

• Taxable base: Minus applicable allowances from the value of the inherited assets.
• Initial tax amount: Apply the national tax rate to the taxable base.
• Adjusted tax amount: Multiply the initial tax amount by the appropriate sum based on the beneficiary’s group and pre-existing wealth.

Paying your inheritance tax in Spain

Spanish inheritance tax must be paid within six months of the estate declaration, regardless of your status as a resident or non-resident. If it’s needed, you can apply for an extension.³

Every beneficiary has to complete a declaration of inheritance tax form and provide a foreigner identity number (NIE). Once the outstanding inheritance tax is paid, the estate will be released. The payment process depends on the provisions of the autonomous region of Spain the estate is located.

Lumon: providing peace of mind for you and your loved ones

Receiving an overseas inheritance can feel overwhelming. At Lumon, we’re here to make transferring your funds as straightforward as possible, allowing you to focus on what matters most, whether you’re receiving or sending money abroad.

Our service is designed around your needs, with a tailored approach, competitive exchange rates and guidance that helps you navigate inheritance tax in Spain when your transfer involves Spanish assets.

• Online account (e-wallet): Hold your funds in the currency in which you receive the inheritance, giving you the flexibility to convert when the timing feels right.
• Dedicated account manager: A personal specialist who gets to know your circumstances and helps you plan a currency approach that aligns with your needs.
• Forward contracts: Lock in an exchange rate ahead of time—such as before the inheritance is released or as part of a property sale connected to the estate—so you know exactly what your funds will be worth when you’re ready to move them.
• Lumon EU bank accounts: This facilitates the direct receipt of funds from foreign solicitors. Lumon can receive your foreign currency inheritance without you needing to hold a bank account in that country or currency.

FAQs about Spanish inheritance tax

Does inheritance tax apply to non-residents in Spain?

Inheritance tax must be paid, if the assets being transferred are in Spanish territory, meaning non-residents are subject to this tax.

Do you pay capital gains tax on inherited property in Spain?

If you decide to sell the inherited property, capital gains tax applies to the difference between the property’s acquisition value (value declared in the inheritance tax) and the transfer (sale) value. The tax rate is 24% for non-EU residents.⁴

Is there a double tax treaty between the UK and Spain for inheritance tax?

The UK and Spain have a double taxation agreement which ensures expats don’t have to pay tax on the same income twice. However, this doesn’t apply to inheritance tax. Consider seeking professional tax advice to confirm which country’s tax laws apply to you.

How much can you inherit without paying inheritance tax in Spain?

Spanish law provides each beneficiary of your estate a tax-free allowance. This ranges from €7,993 to €47,859 depending on their relationship with you. If the value of your inheritance is below your personal allowance, you won’t pay tax on it.

Sources used:

1. Agencia Tributaria – Inheritance and Gift Tax (non-residents) – Acquisitions ‘Mortis Causa’
2. PWC Worldwide Tax Summaries – Spanish Gift and Inheritance tax
3. Gobierno De Espana – Inheritance and Gifts: Tax rules
4. PWC Worldwide Tax Summaries – Spanish Capital gains tax

Sources last checked on date: 15/01/2026

This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Lumon or its subsidiaries, and it is not intended as a substitute for obtaining advice from the relevant professional services. We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.