Inheritance tax in Spain — officially the Impuesto sobre Sucesiones y Donaciones (ISD) — is the tax your heirs will pay when they inherit your Spanish property. The amount they pay depends largely on the region where the property is situated and on their relationship to the deceased. In the Valencian Community, which includes the Costa Blanca, spouses and children have been entitled to a tax allowance of 99% since the reform — a huge difference compared with regions that do not offer such benefits.
For Belgians and Dutch people with a second home in the Spanish sun, this is essential information. Where the Spanish inheritance law determines who inherits and according to which rules, this guide from Invest in Spain about how much tax that you owe — and how to minimise it with careful planning.
Inheritance law and inheritance tax: two different matters
It is important to distinguish between two concepts. The inheritance law handles the legal procedures: who the heirs are, whether Spanish law or your own national law applies, and how the official acceptance of the estate is carried out. The inheritance tax (ISD) is the tax settlement relating to an inheritance. For the legal aspects, please refer to our comprehensive guide on the inheritance law in Spain; here we’re focusing on the figures.
Inheritance tax on Spanish property in 2026
Inheritance tax in Spain is partly regionalised. The state sets a basic rate (a progressive scale ranging broadly from approximately 7,65% to 34%, before regional allowances), but each autonomous region is free to grant its own exemptions and reliefs. As a result, the same inheritance may be almost tax-free in one region and heavily taxed in another.
A crucial point for our target group: thanks to case law from the European Court of Justice, Non-residents from the EU/EEA are entitled to the same regional benefits as residents. A Belgian or Dutch heir to a property on the Costa Blanca may therefore make use of the favourable Valencian scheme.
Valencian Community: the regulations for the Costa Blanca
The Costa Blanca forms part of the Valencian Community, which has become particularly favourable from a tax perspective:
- Spouses and children (Groups I and II): a bonus of 99% The inheritance tax due remains unchanged — even for non-residents who own property in Spain.
- Extended family from 1 June 2026: Brothers, sisters, uncles, aunts, cousins and nieces are entitled to a discount of 25%, which will rise from June 2027 to 50%.
- Reduced stamp duty: Apart from the inheritance, the transfer tax (ITP) for properties valued at up to €1,000,000, from 10% to 9% with effect from 1 June 2026.
For most families, this means that inheritance tax on a second home in Spain will remain limited — provided everything is structured and declared correctly.
Avoiding double taxation with Belgium or the Netherlands
If, as a Belgian or Dutch national, you inherit Spanish property, your home country may also have the right to tax the inheritance. Mechanisms exist between Spain and Belgium and the Netherlands respectively to mitigate double taxation, but the rules are complex and country-specific. Whether you, as an heir (or testator), are Tax resident in Spain plays a major role in this regard. Always have this assessed by a tax specialist.
Plan ahead: how to minimise inheritance tax
Good planning makes a world of difference. Consider a Spanish will (in addition to your Belgian or Dutch will) to speed up the settlement process, consider setting up an arrangement with usufruct (usufructo) for the longest-living, and keep your Note Simple and keep ownership details up to date. A gestor and a tax adviser ensure that everything is declared correctly and on time — in Spain, there is a six-month deadline for inheritance tax returns.
How we can help you
The team at Invest in Spain, led by property expert and CEO Kenzo Fayot, will put you in touch with specialist tax advisers and lawyers who will help you organise your estate planning. Whether you’re buying with your children in mind or wish to optimise the tax position of your existing second home, we’ll guide you through the process with clarity and a personalised approach. Take a look at our overview of the Property taxes in Spain 2026.
Frequently asked questions about inheritance tax in Spain
Do non-residents pay more inheritance tax in Spain?
No. Thanks to European case law, non-residents from the EU/EEA are entitled to the same regional exemptions and allowances as residents. The favourable Valencian scheme therefore applies to the Costa Blanca.
How much inheritance tax do a spouse and children pay?
In the Valencian Community, spouses and children are entitled to a tax relief of 99% on the inheritance tax due, which in practice often leaves very little remaining.
What will change from 1 June 2026?
From June 2026, brothers, sisters, uncles, aunts, cousins and nieces will receive a 25% reduction in inheritance tax, rising to 50% from June 2027. In addition, the transfer tax on residential properties valued at up to €1,000,000 will be reduced to 9%.
Do I need a Spanish will?
It is not compulsory, but it is strongly recommended. A Spanish will significantly speeds up and simplifies the process of settling your Spanish property for your heirs.
Would you like to make proper arrangements for your Spanish estate? Please get in touch with our team for bespoke advice from experienced tax specialists.
