Inheritance Tax Spain for Foreigners: ISD Non-Resident Guide 2026

ISD (Impuesto sobre Sucesiones y Donaciones) under Ley 29/1987 applies to: (a) Spanish residents inheriting from anyone worldwide; (b) non-residents inheriting Spanish assets — real estate, bank accounts, shares in Spanish companies. Non-residents were historically taxed without access to regional reductions (which are very generous), but ECJ ruling C-127/12 (2014) and Royal Decree-Law 17/2015 changed this, giving non-residents the same entitlement.

Yes, since the 2015 reform. EU/EEA non-residents can apply the regional reductions of the autonomous community where the assets are located (for real estate) or where the deceased resided (for other assets). UK nationals post-Brexit are technically third-country nationals, but Spanish courts have generally continued to apply the ECJ ruling by analogy. Specific legal advice is recommended for UK heirs.

The national scale (Art. 21 Ley 29/1987) runs from 7.65% (up to €7,993) to 34% (above €797,555), then multiplied by a coeficiente multiplicador based on the heir's pre-existing wealth and kinship group. In practice, regional reductions dramatically reduce liability: Catalonia gives Group I/II heirs a 99% reduction on the first €500,000; Andalusia 99% for direct heirs; Madrid 99% for Group I/II. ISD is effectively zero for direct family in most regions.

6 months from the date of death, with a possible 6-month extension if requested within the first 5 months. Late payment attracts interest at the legal rate plus surcharges (5-20% depending on delay). The model to file is Modelo 650 (successions) or Modelo 651 (inter vivos donations), filed with the tax authority of the relevant autonomous community.

EU Regulation 650/2012 (effective 17 August 2015) allows EU citizens to choose to have their estate governed by the law of their nationality rather than their country of residence. This affects succession law (who inherits) but NOT the tax owed — ISD is always a territorial tax, so Spanish assets are always subject to Spanish ISD regardless of the chosen succession law.

The heir must accept the inheritance (herencia), pay ISD, and update the Land Registry. When they subsequently sell, the capital gain is calculated from the value declared for ISD purposes (valor de adquisición = ISD value). Non-residents then file Modelo 210 (capital gains tax) and the 3% buyer retention applies at the time of sale.