Most British and Northern European owners on the Costa Blanca still believe Spanish inheritance tax will take a devastating bite out of what they leave behind. In the Valencia region, for a spouse or a child, that stopped being true in 2023.
Inheriting €200,000 from a parent in Alicante now produces a tax bill of roughly €124. The calculator below applies the current rules so you can see the real number rather than the rumour.
Calculadora del Impuesto de Sucesiones · Comunidad Valenciana 2026
Estimación orientativa y no vinculante. Aplica la tarifa del art. 21 y los coeficientes del art. 22 de la Ley 29/1987, y la bonificación autonómica del 99 % de la Ley 6/2023. No contempla todas las reducciones posibles ni la plusvalía municipal.
How much is inheritance tax in the Valencia region?
Very little for a spouse, child or parent. The Valencia region applies a 99% reduction on the tax due for Groups I and II, so only the remaining 1% is payable. A €200,000 inheritance passing from parent to child produces a bill of about €124.
Why this matters more for foreign owners than for Spaniards
A Spanish family typically holds one home and some savings in the same region. A British or Nordic owner on the Costa Blanca often holds a Spanish property, a Spanish bank account, and assets back home — and the two systems do not talk to each other.
Spanish inheritance tax is paid by the heir, not by the estate. In the UK, inheritance tax is settled by the estate before anything is distributed. In Spain, each beneficiary is taxed individually on what they personally receive, and their own pre-existing wealth changes the multiplier applied to them. Two children inheriting identical shares can pay different amounts.
The regional rules that apply are those of the deceased’s habitual residence, as a general rule, not those of the heir’s country. This is what makes the Valencia region’s 99% relief so valuable to residents of Alicante province.
The six-month deadline runs from the date of death, not from probate, not from when the family gets around to it. A UK-style timetable does not fit the Spanish one.
If you own property on the Costa Blanca, the single most expensive mistake is assuming your home-country will and timetable will carry over. They do not. A Spanish will covering Spanish assets is a modest, one-off cost that prevents most of the problems described on this page.
How the calculation actually works
- Taxable base. The value of what each individual beneficiary receives — not the whole estate.
- Allowances. A €100,000 relationship allowance for descendants, ascendants and spouse. Plus, where it applies, 95% of the value of the deceased’s main home, capped at €150,000 per heir, provided the property is kept for five years.
- The state scale. The progressive scale in article 21 of Ley 29/1987 applies, running through sixteen bands from 7.65% to 34%.
- Multiplier. The resulting figure is multiplied by a coefficient from article 22 — between 1.0000 and 2.4000 — based on the family group and the heir’s existing wealth.
- Regional relief. For Groups I and II, the 99% relief introduced by Ley 6/2023 of 22 November is applied.
Worked example
| Item | Amount |
|---|---|
| Value inherited by the child | €200,000.00 |
| − Relationship allowance | −€100,000.00 |
| Net taxable base | €100,000.00 |
| Gross tax (state scale) | €12,415.36 |
| × Multiplier (Group II, no prior wealth) | × 1.0000 |
| Tax before relief | €12,415.36 |
| − Valencia 99% relief | −€12,291.20 |
| Tax payable | €124.15 |
The family groups — and the cliff edge between them
| Group | Who | Valencia 99% relief |
|---|---|---|
| I | Children under 21 | Yes |
| II | Children 21+, spouse, parents | Yes |
| III | Siblings, nieces/nephews, aunts/uncles | No |
| IV | Cousins, unrelated beneficiaries | No |
The gap between Group II and Group III is severe. On the same €200,000, a sibling gets no €100,000 allowance, is taxed on the full amount and has the result multiplied by 1.5882 — a bill above €50,000 instead of €124.
This matters disproportionately for expatriate estates, where beneficiaries are more often siblings, stepchildren or unmarried partners. An unmarried partner falls into Group IV in Spain regardless of how long you have lived together.
What about the property itself?
If the estate includes urban property, a second tax applies: plusvalía municipal, the tax on the increase in urban land value. It is paid by the heir to the town hall where the property sits — Alicante, Torrevieja, Jávea and Orihuela each set their own rates.
Where there has been no genuine increase in value between purchase and transfer, there is a basis for not paying it, but that has to be evidenced with the original and current deeds.
Frequently asked questions
Do I still have to file if the tax comes to almost nothing?
Yes. The 99% relief reduces the amount payable, not the filing obligation. The return must be filed within six months of death even if the result is close to zero. Without it, the property cannot be registered and the deceased’s Spanish bank accounts stay frozen.
Does the 99% relief apply to non-residents?
The relief belongs to the Valencia region’s rules, which apply based on the deceased’s habitual residence rather than the heir’s nationality. Non-resident heirs are entitled to the same regional treatment as residents. Your specific position should be confirmed before you rely on it.
How much does a Spanish will cost?
The notary fee for a simple Spanish will is around €60. It is one of the cheapest pieces of planning available in Spain, and it typically saves the family months of delay because it removes the need for a court declaration of heirs.
Do I need a Spanish will if I already have one at home?
Not strictly, but it is strongly advisable. A foreign will can govern Spanish assets, though it must be translated, apostilled and often supplemented with evidence of foreign law — which is slow and expensive at exactly the wrong moment.
Which law governs who inherits — Spanish or my own?
Under EU Regulation 650/2012, you may elect in your will for the law of your nationality to govern your succession. Without that election, the default is generally the law of your habitual residence, which for a Costa Blanca resident means Spanish forced-heirship rules apply.
Before you act on a number from a calculator
This tool gives an indication. It does not cover business or agricultural relief, disability relief, life insurance treatment, or plusvalía municipal, and it assumes Valencia regional rules apply.
Send us a list of the Spanish assets and we will return an exact figure, plusvalía included, in plain English. You can also read our guide to inheritance in Spain for foreigners or call us on 654 581 493.