When someone dies leaving assets on the Costa del Sol, their heirs may have to pay Spanish inheritance tax. There is no “Costa del Sol” tax as such: inheritance and gift tax is a state tax whose rules Andalusia has partly set for itself, and which rules apply depends on where the deceased and the heirs lived and where the assets are. This guide explains how the tax is worked out, the main Andalusian reliefs, the position of non-residents and the deadlines, so you know what to ask before you file.
The short answer
- Inheritance tax is paid by each heir on the net value of what they receive, not by the estate as a whole.
- For deaths from 1 January 2022, Andalusian residents’ inheritances follow Andalusian Law 5/2021.
- Spouses, children and parents (Groups I and II) have a reduction of 1,000,000 euros of taxable base each and a 99% relief on the tax that remains, in Andalusia.
- Other relatives and non-relatives pay considerably more, because their reductions are smaller and a multiplier applies.
- The return is due within six months of the death, extendable by six months if requested in time.
What are the current inheritance tax rates in Andalusia?
The tax is calculated in four stages:
- Taxable base: the net value of each heir’s share (assets minus deductible debts and expenses).
- Reductions: amounts deducted from the base, mainly by relationship, and for the family home, a family business or disability.
- Scale: for deaths from 1 January 2022, Andalusia applies its own scale to the remaining base, from 7% on the first 8,000 euros up to 26% on the part above 800,000 euros (Article 37 of Law 5/2021).
- Multiplier and reliefs: the result is multiplied by a coefficient by relationship group (1.0 for Groups I and II, 1.5 for Group III and 1.9 for Group IV; Article 38), and then reliefs such as the 99% bonus are applied.
The figures “7.65% to 34%” that this article previously gave are the state scale in Article 21 of the national Inheritance and Gift Tax Law, which does not apply where Andalusian rules apply.
Who is in which group?
| Group | Relationship to the deceased |
|---|---|
| I | Descendants and adopted children under 21 |
| II | Descendants and adopted children aged 21 or over, spouses, ascendants (parents) and adoptive parents |
| III | Siblings, nephews and nieces, uncles and aunts (second and third degree relatives), and in-law ascendants and descendants |
| IV | More distant relatives and non-relatives |
In Andalusia, registered unmarried partners are treated as spouses, and people in permanent foster care or guardianship with a view to adoption are treated as adopted children.
Which inheritance tax reductions and reliefs apply in Andalusia?
The main Andalusian measures in Law 5/2021, for deaths from 1 January 2022, are:
- Relationship reduction (Article 28): 1,000,000 euros for each heir in Groups I and II, and 10,000 euros for Group III.
- Family home (Article 27): a 99% reduction on the value of the deceased’s habitual residence for the spouse, ascendants and descendants (and some cohabiting relatives over 65), provided the heir keeps it for three years after the death.
- Disability (Article 29): additional reductions of 250,000 or 500,000 euros depending on the degree of disability.
- Family businesses and shareholdings (Articles 30 and 31): improved reductions subject to conditions.
- 99% bonus on the tax (Article 39): heirs in Groups I and II apply a 99% relief to the tax due on inheritances, including life insurance proceeds.
Reductions and reliefs have conditions, and some must be kept for several years. Check each one for your case before relying on it.
How do family relationships affect the result?
Very strongly. For a child or spouse, the 1 million euro reduction and the 99% bonus usually leave little or no tax on many estates. For a nephew, a friend or an unmarried partner who is not registered, the reductions are small or nil, and the multiplier of 1.5 or 1.9 increases the tax. The same property can therefore produce very different bills for different heirs.
What is the procedure for declaring inheritance tax?
Which documents are usually needed?
- Death certificate and, where available, the certificate of last wills and the will, or a declaration of heirs.
- Identification and tax numbers of every heir (NIE for foreign nationals).
- Inventory and valuation of the assets: property (with cadastral references), bank balances at the date of death, investments, vehicles, life insurance.
- Debts and deductible expenses.
- Documents proving the relationship to the deceased.
Where and when do you file?
- Deadline: six months from the date of death. An extension of a further six months can be requested within the first five months; if it is granted, late-payment interest runs from the end of the original six months.
- Where: when Andalusian rules apply because the deceased lived in Andalusia, the return is filed with the Andalusian Tax Agency. In some cross-border cases, for example when the deceased was not resident in Spain, the return is filed with the State Tax Agency (Agencia Tributaria) using Modelo 650.
How does residence affect inheritance tax for foreign heirs?
Since the European Court of Justice ruling of 3 September 2014, Spanish law lets non-residents use regional rules in many cases (Second Additional Provision of the Inheritance and Gift Tax Law):
- If the deceased was resident in Andalusia, non-resident heirs can apply Andalusian rules.
- If the deceased was not resident in Spain, heirs can apply the rules of the region where the greatest value of the estate located in Spain is.
The heirs’ own country may also tax the inheritance. Review both sides, and any relief for tax paid abroad, before you file.
Frequently asked questions
How much inheritance tax will I pay in Spain?
It depends on your relationship to the deceased, the value of your share, the region whose rules apply and the reliefs you qualify for. For a child or spouse inheriting under Andalusian rules, the 1,000,000 euro reduction and the 99% bonus often reduce the tax to a small amount; for more distant relatives and non-relatives the bill can be significant. A calculation with the actual figures is the only reliable answer.
What are the new inheritance tax laws in Spain?
For Andalusia, the main change is Law 5/2021 on ceded taxes, which applies to deaths from 1 January 2022 and set the current scale, multipliers and reductions. Rules change through regional budget laws, so check the version in force on the date of death.
How to avoid Spanish inheritance tax?
Inheritance tax cannot simply be avoided, but it can be reduced lawfully by using the reliefs the law provides, for example keeping the family home for the required period or meeting the conditions for family business relief, and by planning gifts and wills in advance with advice. Arrangements without a genuine basis risk penalties.
How we can help
MMR Consultant is based in Málaga with offices in Marbella. Our tax services team handles inheritance and gift tax for residents and non-residents, and our financial advisory team can help plan ahead. Contact us to review an inheritance. For other taxes on Spanish assets, see our guides to wealth tax and Modelo 210 for non-resident owners.
Sources
Checked on 14 October 2026.
- Junta de Andalucía, Inheritance and Gift Tax (groups, equivalences, 99% bonus since 11 April 2019).
- Boletín Oficial del Estado, Andalusian Law 5/2021 on ceded taxes, consolidated text updated 31 December 2025: Articles 26 to 31 and 37 to 39.
- Boletín Oficial del Estado, Inheritance and Gift Tax Law (Law 29/1987): Articles 20 and 21 and Second Additional Provision.
- Agencia Tributaria, Modelo 650: filing deadlines, page updated 12 June 2026.
- Junta de Andalucía, Andalusian Tax Agency, Where and how to file and pay inheritance tax.
This article is general information, not tax advice for your case.
