> Last updated according to the relevant sources on 2026-10-20. General information, not legal advice. # Spanish Inheritance Tax for UK Residents Inheriting Assets in Spain Source: https://crossborderestate.com/guides/spanish-inheritance-tax-uk-residents/ Published: 2026-10-18. Last updated: 2026-11-03. Topics: Inheritance tax, Foreign probate. **General information, not legal advice.** General information about Spanish inheritance tax for UK-resident heirs under the law of England and Wales and Spain as at 20 October 2026. Not legal advice; no lawyer-client relationship. Other laws may apply and the law changes. Take advice from a qualified lawyer in the relevant jurisdiction before acting. CrossBorder Estate is not a law firm. **General information, not tax advice.** General information on Spanish inheritance tax (ISD) and UK inheritance tax for deaths in 2026 (Spain) and the 2026/27 UK tax year, assuming the heir is resident in the UK. Rates change. Not tax advice: confirm with a qualified adviser or the relevant tax authority. ## The short answer A UK-resident heir pays Spanish inheritance tax (Impuesto sobre Sucesiones y Donaciones, ISD) only on assets located in Spain, filing with the State tax agency (AEAT) within six months of the death. Since 2021 every non-resident heir can use the same regional rules as a resident, and close family now pays little or nothing in most regions. UK inheritance tax may also apply: for deaths from 6 April 2025 the test for worldwide assets is long-term UK residence, not domicile. There is no UK-Spain inheritance tax treaty; the UK gives a credit for the Spanish tax, capped at the UK tax on the same asset. ## The Legal Snapshot Spain taxes the heir, not the estate, and for a heir living outside Spain only on what is in Spain. Which region's rules apply depends on where the deceased lived. The UK side depends on the deceased's residence history. ### Deceased lived in Spain, heir lives in the UK - Applicable law: The heir is taxed in Spain only on Spanish assets (art. 7 Ley 29/1987), under the rules of the region where the deceased lived (Ley 29/1987, second additional provision). - Tax exposure: Spanish ISD on the Spanish assets the heir receives, filed with the AEAT. UK inheritance tax on non-UK assets only if the deceased was a long-term UK resident (deaths from 6 April 2025) or UK-domiciled (earlier deaths). - Notes: A deceased who left the UK years ago can still be within UK inheritance tax for a 'tail' of 3 to 10 years after leaving. ### Deceased lived in the UK and owned a Spanish home - Applicable law: Spain taxes the Spanish home. The region is the one where the Spanish assets have the highest value; with one property, that is where it lies. - Tax exposure: Spanish ISD on the property, filed with the AEAT. UK inheritance tax on the worldwide estate if the deceased was a long-term UK resident, otherwise on UK assets only. The UK credits the Spanish tax against the UK tax on the home (IHTA 1984 s.159). - Notes: This is the most common case: a UK resident with a Spanish second home. ### Which assets count as 'in Spain' - Applicable law: Spain taxes a non-resident heir on assets and rights located in Spain, or that can be exercised or must be performed there (art. 7 Ley 29/1987). - Tax exposure: Spanish real estate is always in scope. Spanish bank accounts and investments held in Spain are generally in scope; other assets need checking one by one. - Notes: The position is fixed at the date of death. Moving money after the death does not change it. ## Last updated Last updated according to the relevant sources on 2026-10-20. The statements are drafted from the primary legal sources listed below. This is general information, not legal or tax advice. Written by Roman P. with AI assistance; checked against the sources listed. Roman P. writes the guides on CrossBorder Estate, published by ASPECTERRA LIMITED. Each statement is checked against the primary sources listed on the page. ## How Spain taxes a heir who lives in the UK ISD is charged on each heir, on what that heir receives. A heir who lives outside Spain is taxed only on assets in Spain (art. 7 Ley 29/1987). The State rates are progressive, then multiplied by a coefficient that depends on the heir's existing wealth and relationship to the deceased. Until 2015 non-residents could not use the more generous regional rules. A 2014 EU court ruling (C-127/12) led to a change for EU and EEA residents; Spanish Supreme Court rulings from 2018 extended it to residents of other countries, and since July 2021 the law gives every non-resident heir the same regional rules as a resident (Ley 29/1987, second additional provision, as amended by Ley 11/2021). If the deceased lived in Spain, the heir uses that region's rules; if not, the rules of the region where the Spanish assets have the highest value. The return (Modelo 650) is filed with the State tax agency (AEAT), not a regional tax office, because the tax of non-resident heirs is not handed over to the regions (Ley 22/2009, art. 32). The deadline is six months from the death, with a possible extension if requested within the first five months (RD 1629/1991 arts 67 and 68). A heir who lives outside the EU and EEA, which includes the UK, must appoint a representative resident in Spain for this tax and file the signed appointment with the return (Ley General Tributaria art. 47; RD 1629/1991 art. 18). ## Regional relief for close family For children, spouses and parents, most regions now reduce the tax to little or nothing: Andalucía, Madrid, Valencia, the Balearics, the Canaries and Murcia all give relief of 99% or more on the tax due. Catalonia is the main exception, with full relief only for spouses and a sliding scale for children. Madrid and Valencia have also introduced partial relief for siblings, nephews and nieces. The rules that apply are those in force on the date of death; this guide describes the position for deaths in 2026. Several regions changed their rules between 2021 and 2026, and some reliefs depend on conditions, such as filing on time. Check the region's current law, or ask an adviser, before relying on a figure. ## Filing late A late return still has to be filed. Without a prior request from the tax office, the surcharge is 1% plus 1% for each full month of delay up to 12 months, then 15% plus late-payment interest; it is cut by 25% if paid promptly (Ley General Tributaria art. 27). Some regional reliefs are lost if the return is late. ## UK inheritance tax and double taxation On the UK side this guide uses the 2026/27 tax year. For deaths on or after 6 April 2025, UK inheritance tax reaches assets outside the UK, such as a Spanish home, only if the deceased was a long-term UK resident: broadly, UK resident for at least 10 of the previous 20 tax years. Someone who has left the UK stays within scope for a period of 3 to 10 years. For earlier deaths, the old test of domicile or deemed domicile applies. There is no inheritance tax treaty between the UK and Spain. Where both countries tax the same asset, the UK gives a credit for the Spanish tax, but only up to the UK tax on that asset (IHTA 1984 s.159). Spain gives its own credit only to heirs who live in Spain (art. 23 Ley 29/1987), so a UK-resident heir's relief comes from the UK side. The credit has to be claimed in the UK inheritance tax return. ## Planning is done before death, not after Both taxes are fixed by the position at death, so planning has its effect during the owner's lifetime. A will can choose the law of the owner's nationality to govern the succession (EU Succession Regulation art. 22); that choice affects who inherits, not how much Spanish tax is due. Tax planning needs advice in both countries. ## Common errors about inheritance tax "There is a UK-Spain inheritance tax treaty." There is no inheritance tax treaty between the UK and Spain (HMRC Inheritance Tax Manual IHTM27161). Where both countries tax the same asset, the UK gives a credit for the Spanish tax, but only up to the UK tax on that asset (IHTA 1984 s.159). "UK inheritance tax turns on domicile." For deaths on or after 6 April 2025, UK inheritance tax reaches assets outside the UK, such as a Spanish home, only if the deceased was a long-term UK resident: broadly, UK resident for at least 10 of the previous 20 tax years (GOV.UK, Inheritance Tax if you're a long-term UK resident). For earlier deaths, the old test of domicile or deemed domicile applies. "Spain taxes the worldwide estate of a heir who lives in the UK." A heir who lives outside Spain is taxed only on assets in Spain (art. 7 Ley 29/1987). "Late filing costs 5%, 10%, 15% or 20%." Those are not the current figures. Without a prior request from the tax office, the surcharge is 1% plus 1% for each full month of delay up to 12 months, then 15% plus late-payment interest; it is cut by 25% if paid promptly (Ley General Tributaria art. 27). "The tax is paid to the region where the property is." The return (Modelo 650) is filed with the State tax agency (AEAT), not a regional tax office, because the tax of non-resident heirs is not handed over to the regions (Ley 22/2009, art. 32). ## Legal sources cited - Ley 29/1987 del Impuesto sobre Sucesiones y Donaciones, arts 7, 23 and second additional provision (as amended by Ley 11/2021) (Spain): Tax on non-resident heirs, double-tax credit, regional rules for non-residents - Ley 22/2009, art. 32 (Spain): Non-resident heirs file with the State tax agency (AEAT) - Real Decreto 1629/1991 (Reglamento del ISD), arts 67 and 68 (Spain): Filing period and extension - Court of Justice, Case C-127/12 Commission v Spain (3 September 2014) (EU): Different treatment of non-resident heirs breached free movement of capital - Inheritance Tax Act 1984, s.159 (United Kingdom): Unilateral credit for foreign tax - HMRC Inheritance Tax Manual IHTM27161 (list of estate tax conventions) (United Kingdom): No UK-Spain inheritance tax convention - GOV.UK: Inheritance Tax if you're a long-term UK resident (United Kingdom): Long-term residence test from 6 April 2025 - Ley 58/2003 General Tributaria, arts 27 and 47 (Spain): Late-filing surcharges; representative for non-residents ## Related guides - [Inheriting Spanish Property as a UK Resident](https://crossborderestate.com/guides/inheriting-spanish-property.md) - [The UK–Spain Probate Process, Explained](https://crossborderestate.com/guides/uk-spain-probate-process.md) - [A UK Will and a Spanish Will: When One Revokes the Other](https://crossborderestate.com/guides/uk-spanish-wills-revocation.md) - [Inheritance Tax Before Probate: What a UK–Spain Estate Pays First](https://crossborderestate.com/guides/paying-inheritance-tax-before-probate-uk-spain.md) - [Living in Spain and Inheriting From the UK: Inheritance Tax](https://crossborderestate.com/guides/inheritance-tax-heirs-living-in-spain.md)