1. Degrees of kinship for inheritance tax purposes in Spain (tax brackets). Main table.
The amount of the tax-free allowances and the applicable tax rate depend heavily on the relationship to the deceased. Heirs are divided into four groups:
- Group I: Children (biological or adopted) under 21 years of age. The state tax-free allowance is €15,956.87, plus €3,990.72 for each year until they reach the age of 21 (maximum €47,858.59).
- Group II: Descendants aged 21 and over, spouses, and ancestors (parents/grandparents). The state tax-free allowance is a flat rate of €15,956.87.
- Group III: Second and third degree relatives (siblings, uncles/aunts, nephews/nieces). The state tax-free allowance is €7,993.46.
- Group IV: Relatives from the 4th degree onwards and non-relatives. There is no tax-free allowance (€0.00) for this group.
2. The steps for calculating inheritance tax
In Spain, the determination of the actual tax liability takes place in several steps:
- Determination of the gross discount: Calculation of the actual value of inherited assets (e.g., real estate, bank accounts) at the time of death.
- Calculation of the net discount (Base Imponible): Existing debts and deductible liabilities of the deceased are subtracted from the gross value.
- Determination of the base liquidable: The above-mentioned state or regional allowances for kinship, disability, etc. will be deducted from the net estate.
- Application of the basic tariff (Cuota Íntegra): The progressive basis is applied to the assessment basis. state tax table applied, ranging from 7.65 % (for amounts up to €7,993.46) to 34.00 % (for amounts from €797,555.08). (Note: Some regions, such as the Balearic Islands or Catalonia, have slightly adapted tables for the basic fare).
- Application of the multiplier for prior assets (Cuota Tributaria): Unlike German law, Spanish inheritance tax takes into account the heir's own prior assets. The previously calculated tax amount is multiplied by a coefficient that depends on the degree of kinship and the heir's wealth. The greater the heir's own assets and the more distant the kinship, the higher the multiplier (between 1.0000 and 2.4000).
Table: Multiplier based on prior assets and tax bracket (government regulation)
| Heir's prior assets (EUR) | Groups I and II | Group III | Group IV |
| 0 to 402,678.11 € | 1,0000 | 1,5882 | 2,0000 |
| €402,678.11 to €2,007,380.43 | 1,0500 | 1,6676 | 2,1000 |
| €2,007,380.43 to €4,020,770.98 | 1,1000 | 1,7471 | 2,2000 |
| Over €4,020,770.98 | 1,2000 | 1,9059 | 2,4000 |
- Regional discounts (Total a ingresar): In the final step, the specific bonuses of the respective Autonomous Community are deducted. This is the amount that must ultimately be paid to the tax office.
3. Updated discounts from the Autonomous Communities in Spain (2026)
Since the autonomous communities have the right to apply their own reductions, heirs of Groups I and II pay almost no taxes in many regions. Here is the detailed and updated overview of tax breaks for Children, spouses and grandchildren (Groups I and II) by region:
| Autonomous Community | Bonuses and allowances for groups I and II (as of 2026) |
| Andalusia | 99 % Discount on the tax liability as well as a high tax-free allowance (“Reducción”) of 1.000.000 € per inheritance. |
| Aragon | 100 % tax-free allowance on the assessment basis up to 3.000.000 € for minors and up to 500.000 € for spouses, parents and adult descendants. |
| Asturias | Tax-free up to €300,000 for direct descendants and spouses. |
| Balearic Islands | 100 % discount on the tax liability for direct descendants, spouses, and ancestors. The region also applies its own, slightly modified tax table. |
| Canary Islands | 99.9 % Discount on the tax liability. For heirs under 18 years of age, the reduction can de facto amount to up to €1,000,000. |
| Cantabria | 100 % discount on the tax liability for descendants, spouses and ancestors. |
| Castile-La Mancha | Progressive Discount between 100 % and 80 %: 100 % for inheritances under €175,000, decreasing to 80 % if the amount exceeds €300,000. |
| Castile and León | 99 % Discount on the tax debt. |
| Catalonia | Spouses receive 99 % Discount. A discount applies to Group I (minors). 99 % to 20 % and for adult children (Group II) 60 % to 0 %, depending on the amount of the inheritance. |
| Ceuta and Melilla | The government regulations apply, however, with a deduction of 50 % on the tax liability (can be increased locally up to 99 %). |
| Extremadura | 100 % discount for inheritances up to 500.000 € per inheritance. For amounts exceeding this, a bonus of 90 % up to €600,000 applies. |
| Galicia | 99 % Discount on the assessment basis for amounts up to 1.000.000 €. |
| La Rioja | 99 % Discount on the tax liability for inheritances. |
| Madrid | 99 % Discount on the tax debt. (Additional note: Since mid-2025, the discount for siblings, uncles and nephews has also been increased to 50 %). |
| Murcia | 99 % Discount on the tax debt. |
| Navarre | Tax-free up to €250,000; Amounts exceeding this are subject to a tax rate of 0,8 % taxed. |
| Basque Country | Tax-free up to €400,000; Any amounts exceeding this will be charged as a lump sum. 1,5 % taxed. |
| Valencia | 99 % Discount on the tax liability up to 1.000.000 €. (New for 2026: Members of Group III will now receive a bonus of 25 %, which will increase to 50 % in 2027). |
Important information regarding the tax return deadline: Even if the tax liability is reduced to €0.00 due to regional reductions, there is a legal obligation (usually within 6 months of the date of death) to submit the inheritance tax return (Form 650) to the relevant tax authority within the prescribed time limit.