Inheritance Tax by Regions

Inheritance tax by communities (The long story short is that in the Basque country is one of the best in Spain, the Inheritance tax is extremely low, from 0% to 1.5% for the vast majority of the cases). We rely on the study Panorama of regional and local taxation 2024 of the General Council of Economists and its tax authority, the REAF. Successors of Group I (descendants and adopted children under 21 years of age), we can group the Communities into two:

First Group: communities where they only pay symbolic amounts: Andalusia, Aragon, Asturias, Balearic Islands, Canary Islands, Castile and Leon, Galicia, Extremadura, Madrid, La Rioja, Murcia and the Valencian Community, as well as the foral territories.

A second group where they do not pay if they do not exceed certain limits: Catalonia regulates a reduction of 99% to 20% and inversely proportional to the taxable base. In Castilla-La Mancha, reduction of 100% to 80% for the taxable base that exceeds €300,000. Successors of Group II (spouse, descendants, ascendants and adopted children aged 21 or over): The Communities that practically exempt this group from taxation in 2024 are,in addition to the Basque Country (taxed at 1.5%), Andalusia, the Balearic Islands, Castile and Leon, Extremadura, Madrid, Murcia, La Rioja and the Valencian Community.

Communities such as Aragon for taxpayers with bases less than €500,000. In Asturias, these inheritances are not taxed when the taxable base does not exceed €300,000 and a rate of 21.25% to 36.50% is applied for the rest of the cases. In Galicia, the rate for these relatives, in addition to a reduction of €1,000,000, has rates of 5% to 18%, well below the state rate which reaches 34%. Catalonia applies decreasing bonuses as the quota or base increases. In Castilla-La Mancha there are 100% to 80% tax breaks (the latter for the taxable base exceeding €300,000).

Navarra

In Navarra, the inheritance tax rate is applied at a rate of 0.8% if it concerns the spouse (rate 0 for the first €250,000), and a rate with rates between 2% and 16% if it concerns ascendants or descendants. Tax breakdown scheme for Navarra (as of 2024) Inheritance Tax scheme for Navarra Basque Country

In the Basque territories of Álava, Bizkaia and Gipuzkoa, direct relatives pay a tax rate of 1.5% for the Group I rate (or “Group 0” in Álava), both for inheritances and gifts. Successors of Group III (collateral relatives of 2nd and 3rd degree, ascendants and descendants by affinity) and IV:

Balearic Islands In the Balearic Islands, a 50% bonus is applied to collateral relatives of 2nd and 3rd degree by consanguinity of the deceased, provided that they do not concur with descendants of the deceased. The rest of Group III apply a 25% bonus. Canary Islands

In the Canary Islands, a 99.9% bonus is regulated when the quota is less than €55,000, and the excess is bonused in a decreasing manner as the quota increases, as for Group II.

Cantabria

In Cantabria, a 50% bonus is applied to collateral relatives of 2nd degree by consanguinity.

Madrid

Madrid, two bonuses are regulated: 25% for siblings of the deceased.

Galicia

In Galicia, the reduction for the acquisition of agricultural holdings is applied up to the 4th degre