Spanish Inheritance Tax 2026: Rates by Region + Worked Examples
Definitive 2026 guide to Spanish inheritance tax: exact group reductions (I–IV), regional bonifications for Madrid (99%), Valencia, Andalucía, Murcia and more, with worked examples showing real tax amounts on €200K–€500K estates.
Spain's inheritance tax (*Impuesto sobre Sucesiones y Donaciones* — ISD) is one of the most complex and regionally diverse taxes in Europe. Unlike the UK's flat 40% Inheritance Tax above the nil-rate band, Spain operates a progressive system where the final bill depends on three key variables: the relationship between deceased and heir, the value of the inheritance, and — crucially — the Autonomous Community where the deceased resided or the property is located.
This guide provides the exact 2026 figures you need, with worked examples showing real euro amounts. At Bufete Padilla, with offices in Torrevieja and Moraira, we process over 200 inheritance cases per year across the Costa Blanca. Here is what you need to know.
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The Four Heir Groups: Who Pays What?
Spanish inheritance tax classifies heirs into four groups, each receiving different base reductions before any regional bonifications apply:
| Group | Relationship | Base Reduction (State Level) |
|-------|-------------|------------------------------|
| Group I | Descendants/adopted under 21 | €15,957 + €3,991 per year under 21 (max €47,859) |
| Group II | Descendants/adopted 21+, spouses, ascendants | €15,957 |
| Group III | Siblings, nephews/nieces, aunts/uncles, in-laws | €7,993 |
| Group IV | Cousins, unrelated, unmarried partners* | €0 (no reduction) |
*Unmarried partners may qualify as Group II in some Autonomous Communities that recognise *parejas de hecho*.*
Key insight: The base reduction is applied *before* calculating the tax. But the real savings come from the regional bonifications that each Autonomous Community applies on top.
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Regional Bonifications: The 2026 Landscape
This is where Spanish inheritance tax gets truly extraordinary. The same €300,000 inheritance can cost €300 in Madrid or €55,000+ in Aragón, depending purely on geography.