Spanish inheritance tax and municipal capital gains
Six months. That is the deadline, and it is what turns a straightforward estate into a problem. We apply every Catalan relief and allowance so the bill is what the law says and not a euro more.
The six-month deadline and the extension
Inheritance tax must be self-assessed within six months of death. A further six-month extension is available, but it must be requested before the first five months elapse.
Filing late costs twice: surcharges and interest, and the loss of reliefs that are conditional on filing on time.
Reliefs and allowances in Catalonia
Catalonia has its own rules and, for family estates, notably favourable ones: relief by degree of kinship, by age, for disability, for acquiring the deceased’s main home, for a family business or shareholdings, and for life insurance.
On top of that there is a allowance against the tax due for close relatives which, between parents and children and for mid-sized estates, cuts the final bill substantially.
None of it applies automatically. It has to be claimed and evidenced in the return.
Municipal capital gains tax
Where the estate includes urban property, a separate tax on the increase in land value is due to each town hall where a property is located.
There are two calculation methods and the taxpayer may choose the more favourable one. And where there has been no real increase in value, no tax is due at all.
Non-residents
Assets located in Spain are taxed here regardless of where the deceased or the heirs reside. Non-resident heirs have specific rules on the competent tax authority and on whether regional legislation applies — worth checking before filing.
Tell us about your case
First assessment at no cost. We tell you whether you have a case, what deadlines apply and what it would cost.
About this service.
Do I pay Spanish inheritance tax if I live abroad?+
If the estate includes assets located in Spain, yes, regardless of where you live. Non-residents have their own rules on which tax office is competent and which regional legislation applies.
Can inheritance tax be deferred?+
Yes. Deferral and instalment arrangements exist where the estate lacks liquidity, which is common when the estate is essentially one property. It must be applied for within the deadline.