Key Takeaways
- Spanish inheritance tax (ISD) varies dramatically by autonomous community. Andalucía offers a €1 million per-heir exemption for close relatives (Group I and II) since 2019.
- Heirs have 6 months from date of death to file and pay. A 6-month extension is available if requested within the first 5 months. Late filing incurs surcharges of 5–20% plus interest.
- Non-resident heirs can now apply the most favourable regional rules. Since an EU court ruling, non-residents inheriting Spanish assets can use Andalucía’s generous allowances.
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Key Takeaways
- Andalusia’s EUR 1,000,000 per-beneficiary allowance plus 99% bonification means most direct heirs (spouse, children, parents) pay zero or near-zero succession tax
- Other regions are dramatically different: Valencia and Catalonia allow only EUR 100,000; Balearic Islands only EUR 25,000; the national default without regional allowances is EUR 15,956.87
- Filing deadline is 6 months from death; an extension of a further 6 months is available if requested before month 5 ends
- There is no UK-Spain double tax treaty for inheritance — both Spanish succession tax and UK IHT can theoretically apply to the same estate
- British nationals may still be UK-domiciled for IHT purposes for 10 years after leaving the UK, under the ‘long-tail’ domicile rule
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The Regional Trap
Andalusia’s EUR 1M allowance is not standard across Spain. Other regions have significantly different rules:
| Region | Key allowance (approx.) | Notes |
|---|---|---|
| Andalusia | EUR 1M + 99% reduction | Costa del Sol expats |
| Madrid | EUR 700,000 + 99% reduction | Also generous |
| Valencia | EUR 100,000 | Significant tax from here |
| Catalonia | EUR 100,000 | Significant tax from here |
| Balearic Islands | EUR 25,000 | High exposure |
| National default | EUR 15,956.87 | Without regional allowances |
If you own property in multiple Spanish regions, the succession tax for each property is governed by the regional rules where that property is located. Moving from Marbella to Barcelona in retirement significantly changes your heirs’ succession tax exposure — the EUR 1M Andalusian allowance goes away.
The practical implication: If you’re considering relocating within Spain, factor the regional succession tax rules into the decision. The difference between Andalusia and Catalonia can be hundreds of thousands of euros for a mid-size estate.
The 6-Month Deadline
Succession tax must be paid to the Andalusian regional tax office (Junta de Andalucía) within 6 months of the date of death.
An extension is possible, but the request must be filed within the first 5 months. The extension gives an additional 6 months (12 months total). Extensions are generally granted on request; no special reason is required.
If no extension is filed and the deadline is missed, late penalties apply:
| Time after deadline | Penalty surcharge |
|---|---|
| Up to 3 months late | 5% |
| 3-6 months late | 10% |
| 6-12 months late | 15% |
| Over 12 months late | 20% |
These penalties apply to the tax owed, not the total estate value. For a zero-tax estate, there is no penalty (though the succession tax return must still be filed to show zero is owed).
A Spanish abogado or asesor fiscal — tax adviser — handles the succession tax filing as part of the inheritance process. Professional fees for this are typically included in the overall estate administration costs.
UK Inheritance Tax: The Separate Question
Spanish succession tax is separate from UK inheritance tax (IHT). There is no UK-Spain double tax treaty for inheritance. This means both taxes can theoretically apply to the same estate.
In practice:
- For most expat estates in Andalusia, Spanish succession tax is zero or near-zero (as shown in the examples above).
- UK IHT applies to UK domiciliaries on worldwide assets, with rates from 40% above the UK nil-rate band (currently £325,000 for individuals, £500,000 including the residence nil-rate band where applicable).
- British nationals living in Spain may still be UK-domiciled for IHT purposes, particularly in the first 10 years after leaving the UK (the “10-year tail” rule).
The combination of zero Andalusian succession tax and significant UK IHT is possible for high-value estates where the deceased was still UK-domiciled. This is a separate planning question from the Spanish will and is addressed by cross-border estate planning with qualified advisers in both jurisdictions.
For the purposes of your Spanish will and succession tax planning in Andalusia: the practical answer for most direct heirs is zero or near-zero Spanish succession tax.
Andalusian succession tax allowances confirmed January 2026. Regional allowances change periodically; verify if planning more than 12 months ahead. UK IHT rates confirmed February 2026.
Related Guides
Frequently Asked Questions
Where can I find more guides on this topic?
See our Complete Spanish Wills Guide for the full picture, or browse all guides at guides.waypointsur.com.
