How the inheritance received by non-residents in Spain is taxed

When goods or income are received through an inheritance, they are obliged to pay taxes. This situation also applies to non-residents in certain cases.

When is the inheritance of a non-resident taxed in Spain?

The situations in which a person who does not reside in Spanish territory but pays taxes in Spain for the inheritance received are:

When a family member residing in Spain dies and you are an heir but you do not reside in Spain or in another EU country.
- If you have assets in Spain:
  - If the heir does not reside in Spanish territory, he will have to pay in Spain for the value of the assets located in the country and may apply the regulations of the Autonomous Community where most of the value is located.
  - If the heir resides in the European Union, he will pay in Spain applying the regulations of the Autonomous Community where the deceased resided.
  - If the heir resides in Spain, he pays in Spain for all the assets, regardless of where they are located. The regional regulations of the place where the deceased resided will apply.
- If you have assets outside of Spain:
  - If the heir does not reside in Spanish territory, he will not have to pay in Spain.
  - If the heir resides in Spain, he pays in Spain for all the assets, regardless of where they are located. The regional regulations of the place where the deceased resided will apply.

When you receive an inheritance from a non-resident relative:
- If you have assets in Spain:
  - If the heir does not reside in Spanish territory, he will have to pay in Spain for the value of the assets located in the country and may apply the regulations of the Autonomous Community where most of the value is located.
  - If the heir resides in Spain, he pays in Spain for all the assets, regardless of where they are located. The regional regulations of the place where the deceased resided will apply.
- If you have assets outside of Spain:
  - If the heir does not reside in Spanish territory, he will not have to pay in Spain.
  - If the heir resides in Spain, he pays in Spain for all the assets, regardless of where they are located. The regional regulations of the place where the deceased resided will apply.

What taxes apply to the inheritance received by a non-resident

When the situation arises in which a natural person who does not reside in Spanish territory receives an inheritance, they will be obliged to self-assess the Inheritance and Donations Tax at the State Tax Administration Agency (AEAT).

Individuals residing in Spain must also do so when the inheritance is received from a person who did not reside in Spanish territory.

How the inheritance received by non-residents is taxed

Inheritance and Donation Tax is a direct tax levied on the acquisition by natural persons of assets and rights through inheritance.

This tax is state in nature but is managed by the autonomous community, so each Autonomous Community approves its own regulations that include allowances, reductions and deductions in the tax rate that are different from the state ones.

Therefore, it is essential to know if it is possible to apply any of the community regulations and which of them would be applicable:

If the deceased person does not reside in Spain but the heir does. In this case, the regulations of the Autonomous Community where the greatest value of the goods is located or where he resides will apply, if there are no goods located in Spain.
If the deceased person resided in Spain but the heir did not. In this situation, the regulations of the Autonomous Community where the deceased resided apply.

In any case and independently of the application of regional regulations, if the taxable person does not reside in Spain, the competent body for the liquidation of the tax is the State Tax Administration Agency, and must be liquidated at the National Tax Management Office – Non-resident successions.

Tax calculation

For the payment of the tax, the tax base is calculated, subtracting the possible charges from the estate and dividing by the number of heirs.

After that, the reductions are applied to obtain the tax base, to which the corresponding percentage will be applied.

The state regulation establishes that the rate can go from 7.65% to 34% of the net tax base. Being a progressive tax, the more you inherit, the more you have to pay. The Inheritance Tax can be applied to the inheritance of non-residents in a similar way as residents of Spain do. It is applied in all cases except when the assets are not located in Spain and the heir does not reside in Spanish territory. The applicable tax is managed by the autonomous communities, so there are different reductions and bonuses depending on the applicable regulations, although in any case it will be settled before the State Tax Administration Agency.

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