Several Spanish regions started implementing changes to inheritance and donation taxes in 2024. The reforms reduce the tax burden for many beneficiaries, but the actual amount due depends on where the property is located because regional authorities set the rules. Citizens who become beneficiaries must consider the updated rules as their assets change hands and values shift.
When a family member dies and a person inherits, questions arise about how to minimize taxes. Understanding how the tax works requires recognizing that the tax is governed at the regional level and varies by city. In general, larger inheritances incur higher taxes, and there are notable exemptions and thresholds based on age and relationship to the deceased. In most cases, individuals under 21 may be exempt from paying the tax, depending on local regulations.
In 2023, many regional governments adopted measures that lowered the amount collected or, in some instances, removed the tax from the local tax agenda due to the burden it placed on families. The pandemic and longer life expectancy have led to more inheritances, yet a growing number of heirs found themselves unable to pay the tax and chose to decline their inheritance as a result.
Join BİLGİ WhatsApp channel
What changes will happen in 2024?
asturias
In Asturias, certain heirs are exempt from paying taxes up to 300,000 euros, including grandchildren or adopted children under 21, spouses, descendants, and older adoptive heirs.
Estremadura
The Extremaduran community offers a 99% bonus to all heirs with no monetary limit, easing the tax burden for most beneficiaries.
Aragon
Aragon provides a 65% bonus on inheritances not exceeding 100,000 euros; amounts above that threshold may require payment of the standard tax rate.
Catalonia
Here a complex rule set applies: heirs under 21 with an inheritance under 100,000 euros are exempt, and spouses retain this benefit. For grandchildren, the exemption limit drops to 50,000 euros. Those who do not fall into these relationships face the standard tax, payable on the amount received.
Galicia
Galicia sets a threshold of 400,000 euros for descendants and adoptees, as well as spouses and kings of the household who are 21 or older, above which the tax applies according to the regional rates.
Murcia
Murcia applies a 99% bonus rate in all cases with no upper limit on the exemption amount, substantially reducing tax for many inheritances.
Madrid
Madrid presents a nuanced landscape: immediate family members can benefit from a 99% bonus, while siblings may have a 15% bonus. If the heir is a nephew, a 10% payment on the received amount may apply.
Castile and Leon
In Castile and Leon, a 400,000-euro threshold applies to all heirs, and victims of gender-based violence receive a 99% bonus on eligible portions of the inheritance.
Andalusia
Andalusia allows up to a one-million-euro exemption, after which the corresponding tax rate is applied based on the remaining amount.
rioja
Rioja offers a 99% bonus to all heirs, reducing the tax burden substantially for accepted inheritances.
Valencian Community
In the Valencian Community, the tax is subsidized by 99% for spouses, descendants, and further generations within the eligible relationships.
Balearic Islands
In the Balearic Islands, the inheritance tax does not apply in any circumstance for qualifying beneficiaries, reflecting a broad exemption policy in this region.
Note: These regional policies reflect ongoing adjustments and may be subject to change. Each case depends on the exact familial relationship, the value of the estate, and the current regional rules. When planning an inheritance, it is prudent to consult local tax authorities or a qualified advisor to confirm the latest thresholds and exemptions and to understand how they interact with national tax rules. [Source: regional tax authorities and official summaries, with attribution]