Compare ISD rates across all 19 autonomous communities — from near-zero in Madrid and Andalucía to the full national scale in Cataluña. Full guide plus external calculator for every region.
Spain's Impuesto sobre Sucesiones y Donaciones (ISD) is a transfer tax that applies to two distinct scenarios: assets passing on death (mortis causa — what most people call inheritance tax) and assets transferred during the donor's lifetime (inter vivos — gifts or donations). Both scenarios fall under the same legislative framework — Law 29/1987 — but the practical tax cost can differ significantly depending on which type of transfer is involved and, critically, in which autonomous community the transfer is taxable.
ISD is paid by the recipient, not the donor or the deceased's estate. In an inheritance, each heir pays ISD on their individual share. In a lifetime gift, the person receiving the gift (the donee) pays the tax. The donor is not directly liable, although in practice they often bear the economic cost by grossing up the gift. Spanish tax authorities have the right to pursue the donor in certain circumstances if the donee fails to pay, so professional structuring matters.
Spain claims the right to tax under ISD where (a) the recipient is a Spanish tax resident — in which case all assets received, wherever located worldwide, are subject to ISD — or (b) the assets transferred are located in Spain, even if neither party is resident. This means a non-resident receiving a gift of a Spanish apartment from a non-resident parent is caught by Spanish ISD on the value of that property.
ISD is constitutionally a state tax, but its yield has been ceded entirely to Spain's 17 autonomous communities (plus Ceuta and Melilla). The central government sets the base structure — the national tax scale, the relationship groups, and the base reductions — but each autonomous community can modify rates, introduce additional reductions, create its own exemptions, and apply bonuses (bonificaciones) of up to 99% of the calculated tax. The result is a patchwork of very different tax environments across the country, where the same inheritance can cost virtually nothing in one region and a substantial percentage of the estate value in another.
Navarra and the Basque Country operate under their own entirely separate ISD regimes (Foral law), which are structurally different from the common regime and generally more generous.
The key factor driving both the national scale reductions and the regional bonuses is the relationship between the donor/deceased and the recipient. Spanish law classifies this into four groups:
After applying personal and other reductions to calculate the taxable base, the national progressive scale applies rates from 7.65% (on the first €7,993) up to 34% (on amounts above €797,555). This calculated tax is then multiplied by a coefficient that depends on the recipient's existing patrimony and relationship group — the coefficient for Group IV recipients with significant existing wealth can be as high as 2.4, effectively doubling the calculated tax. Finally, the autonomous community applies its own bonuses and additional reductions on top of the nationally calculated charge.
The practical impact of regional rules cannot be overstated. Madrid and Andalucía both apply a 99% bonificación on the ISD liability for Group I and II beneficiaries — meaning that an adult child inheriting €500,000 from a parent resident in Madrid pays approximately €1,000–€2,000 in ISD rather than the €60,000+ that would be payable at national scale rates. By contrast, in Cataluña, a similar inheritance from a parent to an adult child currently benefits from a much more limited reduction — in the order of 25–50% depending on the amount — resulting in a genuine and material ISD charge.
The regional treatment of lifetime gifts (donaciones inter vivos) is a crucial planning dimension. Several regions that are generous with inheritance reductions apply a lower bonus to lifetime gifts, or impose additional requirements (such as notarisation, registration of the gift with the tax authority, or mandatory use of the transferred funds). In Andalucía, the 99% bonus currently applies to both inheritances and gifts to Group I and II beneficiaries — but this has not always been the case and could change with future regional legislation. In Galicia, significant reductions apply to inheritances but the gift treatment is less generous, making it important to assess the timing of any planned transfer.
Until 2014, non-EU residents receiving Spanish inheritance or gift assets were generally restricted to the national ISD scale, without access to the regional bonuses — which could produce dramatically worse results than for a comparable resident. The European Court of Justice ruled in Commission v Spain (C-127/12) that this discrimination was incompatible with EU rules on free movement of capital. Spain subsequently amended Law 29/1987 to allow both EU/EEA residents and, importantly, non-EU-resident beneficiaries to opt for the rules of the autonomous community with the most connection to the transfer. For real estate, this is the community where the property is situated. For financial assets (bank accounts, shares, funds), it is the community of residence of the deceased or donor. This reform fundamentally changed the planning landscape for non-residents with Spanish assets.
Spanish civil law allows an asset to be split into the usufructo (the right to use and enjoy the asset, including receiving income from it) and the nuda propiedad (bare ownership — the right to dispose of the capital, subject to the usufruct). Parents frequently donate the bare ownership of real estate or investment portfolios to their children while retaining the usufruct for life. ISD on the donation is calculated only on the value of the bare ownership — which is determined by an actuarial formula based on the donor's age (broadly, 89 minus the donor's age as a percentage of the full value). On the donor's death, the usufruct consolidates automatically in the bare owner without triggering a further ISD charge. This technique, when properly implemented and combined with the applicable regional rules, can substantially reduce the overall ISD cost of an intergenerational wealth transfer.
ISD must be filed and paid within six months of the death (for inheritances) or the date of the gift (for donations). For inheritances, extensions of six months are available on application, submitted before the initial six-month period expires. Failure to file on time results in surcharges — 5% for a delay of up to 3 months, 10% for 3–6 months, 15% for 6–12 months, and 20% plus interest for delays beyond 12 months. For non-resident beneficiaries of Spanish real estate, it is the Agencia Tributaria — specifically the AEAT office with territorial jurisdiction over the property — that handles the filing.
The table below shows the indicative ISD position for a gift or inheritance of approximately €200,000 to an adult child or spouse (Group II) in each autonomous community. Values reflect the effective cost after applying regional reductions and bonuses as of 2026. Individual results vary with patrimony, exact amount and other factors.
| Community | Gift to child (~€200k) | Inheritance from parent (~€200k) | Main reduction / bonus | Level |
|---|---|---|---|---|
| Madrid | ~€0–€400 | ~€0–€400 | 99% bonificación Groups I & II | Near-zero |
| Andalucía | ~€0–€500 | ~€0–€500 | 99% bonificación Groups I & II | Near-zero |
| Murcia | ~€600–€1,200 | ~€600–€1,200 | 99% bonificación Groups I & II | Near-zero |
| La Rioja | ~€800–€1,500 | ~€800–€1,500 | 99% bonificación Group I; 98% Group II | Near-zero |
| Canary Islands | ~€1,000–€2,500 | ~€400–€800 | 99.9% inheritance bonus; gift bonus lower | Very low |
| Galicia | ~€2,000–€5,000 | ~€1,000–€2,000 | €1M reduction inheritance Group I/II; gifts less generous | Low (inheritance) |
| Extremadura | ~€2,500–€5,000 | ~€2,500–€5,000 | 99% bonificación Groups I & II | Near-zero |
| Cantabria | ~€3,000–€6,000 | ~€800–€1,500 | 100% inheritance bonus Group I/II; gift bonuses lower | Low (inheritance) |
| Castilla-La Mancha | ~€3,000–€7,000 | ~€3,000–€7,000 | 95–99% bonus Groups I & II; income-conditioned | Low |
| Asturias | ~€4,000–€8,000 | ~€2,000–€4,000 | €300k reduction inheritance; reduced gift bonus | Low–moderate |
| Balearic Islands | ~€4,000–€9,000 | ~€2,000–€5,000 | Reduced rates for Group I/II; some regional exemptions | Moderate |
| Aragon | ~€4,500–€9,000 | ~€2,000–€5,000 | €500k reduction inheritance; gifts at national scale | Moderate |
| Castilla y León | ~€5,000–€10,000 | ~€3,000–€6,000 | €400k reduction inheritance Groups I/II; limited gift relief | Moderate |
| Valencia | ~€6,000–€12,000 | ~€4,000–€8,000 | 75% bonificación Group I; 50% Group II — reformed 2023 | Moderate |
| Cataluña | ~€18,000–€28,000 | ~€12,000–€20,000 | 25–50% reduction; national scale largely applies for gifts | High |
| Basque Country | ~€3,000–€8,000 | ~€2,000–€5,000 | Own Foral scale; generally more generous than national; varies by province (Álava, Gipuzkoa, Bizkaia) | Low |
| Navarra | ~€2,500–€6,000 | ~€1,500–€4,000 | Own Foral regime; favourable rates for Group I/II; own scale | Low |
| Ceuta | ~€800–€1,500 | ~€800–€1,500 | 50% reduction; lower scale than mainland | Low |
| Melilla | ~€800–€1,500 | ~€800–€1,500 | 50% reduction; lower scale than mainland | Low |
Figures are indicative estimates for a Group II beneficiary (adult child) with zero prior patrimony. Exact liability depends on prior patrimony of the recipient, exact asset values, and applicable deductions. Basque Country figures reflect the broadly applicable Gipuzkoa rules as an indicative baseline. Always verify with a qualified tax professional.
Enter the value of the inheritance or gift, select the autonomous community and relationship group to get an estimated ISD liability — before and after any applicable CCAA bonificación. Based on 2024 national scale and CCAA bonus data.
⚠ Indicative estimate only. Does not include reductions for prior patrimony, disability, housing, or complex CCAA rules. For exact figures consult a tax lawyer.
For a full calculation covering all 19 communities, prior patrimony, and exact regional rules:
Open Full ISD Calculator →The gap between regions means that careful advance planning can produce dramatically different ISD outcomes on the same transfer. These are the principal strategies worth understanding before a significant gift or inheritance.
For Spanish residents, the autonomous community of residence at the time of death (or gift) determines which regional rules apply. Establishing genuine fiscal residence in Madrid or Andalucía before a planned large gift or inheritance event can reduce ISD from tens of thousands of euros to near zero for Group I and II beneficiaries. Spain requires genuine residence — not merely registering an address.
Following the Court of Justice ruling in C-127/12, non-residents can now opt for the regional rules of the autonomous community most connected to the transfer. For real estate this is the community where the property sits. For financial assets, it is the community of the deceased's or donor's residence. This can transform the ISD position — a beneficiary of a Marbella apartment can apply Andalucía's 99% bonus rather than the national scale.
Regional rules for lifetime gifts and inheritances are not always identical. In some regions (such as Galicia and certain others), the inheritance reduction is more generous than the gift reduction — making it advantageous to wait. In others (Andalucía, Madrid), the treatment is broadly equivalent. Modelling the ISD cost of a gift now versus deferring to an inheritance is essential before proceeding.
Donating the bare ownership of an asset while retaining the usufruct for life reduces the ISD base to a fraction of the full value — calculated actuarially based on the donor's age. On the donor's death, consolidation of the usufruct is ISD-exempt. This technique is most powerful when combined with the Madrid or Andalucía 99% bonus, as it reduces an already near-zero tax bill further, but it also makes a material difference where higher regional rates apply.
Shares in a qualifying family business transferred to descendants can benefit from a 95% reduction in the ISD base, applicable at national level and often improved by regional rules. The conditions are strict — active business, minimum 5% or 20% family ownership, managerial role, salary exceeding 50% of total income — but when met, this represents one of the most powerful ISD relief provisions in Spanish law.
Life insurance proceeds paid to a named beneficiary on the death of the insured are not technically inheritance — they are the exercise of a contractual right. Some regions tax this within ISD; others treat it more favourably. The designation of beneficiaries, the structure of the policy, and the community of residence all affect the tax outcome. Insurance-based wealth transfer is worth reviewing alongside any direct gift or inheritance plan.
Important: ISD must be declared within 6 months of the death or date of gift. Extensions of up to 6 additional months are available for inheritances if requested before the initial deadline expires. Failing to file on time results in surcharges of 5%–20% plus interest — compliance is time-critical.
Whether you are planning a gift, have received an inheritance, or are concerned about Spanish ISD on a non-resident transfer — Jacob responds within one business day.
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