Spain: Inheritance Tax Benefits Vary Significantly by Region and Kinship

Spain's inheritance tax (Impuesto de Sucesiones y Donaciones) varies significantly depending on the autonomous community and the relationship between the deceased and the heir. Depending on the region and kinship, heirs may receive tax benefits of up to 100%. This can lead to substantial differences in the amount of tax paid. Several autonomous communities already offer benefits close to 100%. However, tax experts from the Ministry of Finance have pointed out inequalities and proposed standardizing the tax across Spain. The tax rate ranges from 7.65% to 34% of the inheritance value, before applying regional benefits, according to the Spanish Tax Agency. Key factors determining inheritance tax benefits include the region of residence and the kinship between the heir and the deceased. Groups I and II, which include descendants under 21, descendants over 21, spouses, ascendants, and adopters, generally receive the most significant benefits. Several regions offer near-total exemptions or substantial reductions for these groups, while others provide more limited benefits or none at all for distant relatives.