Where it is filed: the state Tax Agency
As a rule, Spanish inheritance tax is managed by each region. But as soon as the heir or the deceased is non-resident in Spain, competence passes to the state Tax Agency: you file Form 650 with its National Tax Management Office, online, with one self-assessment per heir. For an heir living abroad this is a practical advantage — no regional office to visit; with a power of attorney, we file it from Elche.
Which rules apply: the regional ones, for non-residents too
For years non-residents were taxed under the far costlier state rules while a resident inheriting the same property enjoyed their region’s reliefs. The EU Court of Justice found this contrary to EU law in 2014, and Spain’s Supreme Court extended the finding in 2018 to residents outside the EEA. Today the non-resident is entitled to opt for the regional rules determined by this connecting rule:
| Situation | Rules the non-resident may apply |
|---|---|
| The deceased lived in Spain; the heir lives abroad | Those of the region where the deceased lived |
| The deceased lived abroad; the heir lives in Spain | Those of the region where the heir lives |
| Both lived abroad and there are assets in Spain | Those of the region holding the greatest value of the Spanish assets |
In practice, for a home in Elche, Torrevieja or Orihuela Costa with an heir in Germany, the UK or Norway, that means Valencian rules.
Valencian rules, in figures
- 99% relief on the tax due for spouses, children and descendants, parents and ascendants (groups I and II), for estates arising from 28 May 2023.
- €100,000 reduction in the taxable base for those same relatives; children under 21 add €8,000 for each year below 21, up to €156,000.
- Siblings, uncles, aunts, nephews and nieces (group III): 25% relief for deaths from 1 June 2026, rising to 50% from 1 June 2027. No €100,000 reduction.
- The remaining 1% is paid and the return must be filed even when the tax is close to zero: without it, the Land Registry will not register the property in the heir’s name.
The deadline: six months that go fast
Six months from the date of death to file and pay. A further six-month extension can be requested, but it must be applied for within the first five months, and it accrues late-payment interest. For an heir abroad the calendar is tighter than it looks: you will need an NIE, the certificate of last wills (available about fifteen working days after the death), a copy of the will or the declaration of heirs, and the deed of acceptance before a notary — with a Hague apostille and sworn translation of every foreign document. The sensible time to start is the week after the death, not month five.
What comes next: municipal plusvalía and life as an owner
Alongside inheritance tax, the town hall charges the plusvalía municipal on the increase in land value, also within six months, extendable; since 2021 it can be calculated objectively or on the real gain, and it is not due where there was no increase. And once the inheritance is accepted, the non-resident heir also inherits the obligations of any non-resident owner: the annual Modelo 210, IBI in their name and a Spanish address for notices. If you later sell, the 3% retention is set against the value declared in the inheritance — one more reason not to undervalue the property on Form 650.
We handle the whole non-resident inheritance: NIE, paperwork and apostilles, Form 650 with the regional rules you are entitled to, plusvalía, change of title and, afterwards, Modelo 210 and IBI every year. In English, under a power of attorney, without you having to travel.