We here at SGM Abogados thought it would be interesting for our clients old and new to have an insight into the often misleading subject of inheritance tax. This post we hope will help you to clarifiy some of the immediate family rules regarding the inheritance taxes in the Valencian community. It is not a simple matter and that’s why you’ll find so many people saying many different things.

The problem arises regarding the calculation of the Inheritance Tax, because  there was a national law that was applicable to non-residents and others with a regional character that applied to the residents in each of the regional governments. Now and after the ruling of ECJ the regional law is applicable to both, non-residents and residents.

Since the sentence of the ECJ of 3rd of September 2014 non-residents of the European Union who inherit assets in Spain will be entitled to claim the exemptions of the regional government. (this is because the European Court of Justice considered that non-residents where being discriminated against).

The amount payable by each heir depends on a number of factors such as:

  •               Value of assets inherited
  •               Relationship between deceased and beneficiary
  •               Pre-existing wealth of the beneficiary
  •               The existing wealth of the inheritors
  •               Age of the heir

Beneficiaries are divided into the following four groups depending on the closeness of relationship to the donor or the deceased:

  • Group 1: Natural and adopted children and other descendants (e.g. grandchildren, great-grandchildren) under 21
  • Group 2: Natural and adopted children and other descendants aged 21 and over; parents and other ascendants (such as grandparents, great-grandparents), and spouses
  • Group 3: In-laws and their ascendants/descendants, step-children, brothers and sisters, cousins, nieces and nephews, aunts and uncles
  • Group 4: All others including unmarried partners, even if they have registered as a “pareja de hecho”



Acquisitions by inheritance or legacy by kinship reductions in the tax base. You pay nothing until:

  • €156.000, for descendants under 21 years of age.
  • €100,000, for all other descendants, ascendants and spouses over 21 years of age.

There is a reduction of 75% of the amount of the tax payable corresponding to the property and rights declared.

Acquisitions of the main property of the deceassed:

Reduction of 95% of the amount of the tax payable corresponding to the property,  with a limit of €150,000 provided that the heir keeps the property for five years. Another stipulation required is that the heir be living in the property for the previous two years up to the death.


State Tax Rates and Multipliers

The state succession tax rates are:

From (€) To (€) Tax Rate
Nil 7,993.46 7.65%
7,993.46 15,980.91 8.50%
15,980.91 23,968.36 9.35%
23,968.36 31,955.81 10.20%
31,955.81 39,943.26 11.05%
39,943.26 47,930.22 11.90%
47,930.22 55,918.17 12.75%
55,918.17 63,905.62 13.60%
63,905.62 71,893.07 14.45%
71,893.07 79,880.52 15.30%
79,880.52 119,757.67 16.15%
119,757.67 159,634.83 18.70%
159,634.83 239,389.13 21.25%
239,389.13 398,777.54 25.50%
398,777.54 797,555.10 29.75%
Over 797,555.10 34.00%

We hope this clarifies a little more any doubts our clients may have, but please do not hesitate to contact us in order to get complete advice in your particular case with your particular circumstancies.

Please contact us if in doubt. We are here to help. info@sgmlegalspain.com