In Spain even if you are a foreigner, paying Inheritance Tax is still a requirement. This applies even when the inheritor is the spouse of the deceased. It’s not just on property that Spanish inheritance tax is payable. You must also pay it on money held in bank accounts, on vehicles, deposits and any other assets that may be inherited.

You are given a time frame of 6 months in which to pay the tax. After this time you will be fined for late payment. Past your six months’ window you will pay an extra 5% for every three months up to a maximum charge of 20%. Paying interest on late payments increases this amount even more.

How much do inheritors have to pay?

Spanish inheritance tax rates vary enormously. It depends upon:

• Value of the estate



• Your relationship to the deceased



• Your status as a resident or non-resident



• The Autonomous community or region in Spain that the property is situated in (for residents)



• Whether a property inherited to a non-resident from a resident is then sold

Where a close relative, who is a non-resident, inherits from a resident they may not have to pay inheritance tax in Spain provided they commit to not selling the property for another 10 years.

As you can see, the legislation is quite complex and you do need to seek legal advice to make sure your inheritors will pay as little as possible.