Where taxpayers get caught out
The six-month deadline runs from the date of death, not from the moment the family learns about the Spanish assets. Many foreign families start late, lose the extension and pay surcharges that could have been avoided.
Kinship groups
| Group | Who | Treatment |
|---|---|---|
| I | Children and descendants under 21 | Largest reductions and Balearic reliefs |
| II | Children over 21, spouse, parents | Large reductions and Balearic reliefs |
| III | Siblings, nephews, nieces, in-laws | Small reduction, multiplier on the tax |
| IV | Other relatives and unrelated people, including unmarried partners not registered | No reduction, highest multiplier |
Balearic reliefs for close family
In recent years the Balearic Islands have introduced reliefs that, for spouses, children and parents, eliminate or almost eliminate the tax in many estates. Registered domestic partners are treated like spouses if they are registered in the Balearic registry. Because these rules are revised, we confirm the reliefs in force at the date of death in every case.
Non-resident heirs and deceased
Since the European Court ruling of 2014 and later Spanish Supreme Court decisions, heirs and deceased persons living abroad can apply the regional rules where the assets are, instead of the harsher state rules. For a villa in Mallorca, this generally means the Balearic rules.
Steps after a death
- Obtain the death certificate, the Spanish certificate of last wills and the will.
- Value the assets and list debts and funeral costs.
- Obtain NIEs for heirs who do not have one.
- File the tax return within six months, or request the extension within the first five.
- Sign the acceptance deed and register the property.
The town hall also charges the plusvalía on the land. Heirs abroad often appoint a tax representative. See our inheritance tax service.
An illustrative example
Based on situations we commonly see; not a specific client. Two adult children living in Germany inherited their mother's apartment in Palma. We obtained their NIEs, requested the extension, valued the property and filed the return under Balearic rules; the reliefs for children reduced the tax to a small fraction of what they had feared.
How Castell.tax can help
We guide foreign families through Spanish inheritances and gifts from start to finish: NIEs, the extension request, valuations, the Balearic tax return, plusvalía and the deeds, working with heirs in any country through powers of attorney. See our inheritance and gift tax service or contact us as soon as possible after a death, while all deadlines are still open.
This page is published by Castell.tax, the tax practice of Castell.law in Palma de Mallorca. It is general information; tax rules and rates change, so check your case with us before filing.
Not sure what you owe? Ask before the deadline
Send us your situation or the letter you received. A tax adviser will tell you what applies, what it could cost and what to file.
Frequently asked questions
Who pays inheritance tax in Spain?
Each heir, on the share they receive.
What is the deadline?
Six months from the date of death, extendable by six months if requested within the first five.
Can non-residents use Balearic reliefs?
Yes, after the European and Supreme Court rulings.
Do unmarried partners pay more?
Unregistered partners are treated as strangers; registered ones in the Balearics as spouses.