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Unlike Andorra, Spain levies an Inheritance and Gift Tax (Impuesto sobre Sucesiones y Donaciones), regulated by the 17 autonomous communities, so the actual tax burden on the same inheritance can differ dramatically depending on where the assets are located or where the deceased resided. Some regions (such as Madrid) offer allowances of up to 99% for close relatives, while others apply much higher effective rates. Following rulings by the EU Court of Justice and Spain’s Constitutional Court, non-residents from EU/EEA countries are entitled to apply the same regional allowances as residents, and this practice is gradually extending to non-residents from other countries too. For foreign owners of property in Spain, it’s essential to plan the succession structure in advance and, where needed, coordinate a Spanish will with a will from the home country to avoid a conflict of jurisdictions.
