INHERITANCE · INHERITANCE TAX (IMPUESTO DE SUCESIONES)
Inheriting as a non-resident: you file the Inheritance Tax (Impuesto de Sucesiones) with the State, but you may be able to apply the Valencian relief
By Moisés Vicens i FrancésJune 27, 20269 min read
A common misunderstanding when inheriting from abroad: many non-residents believe they have to pay the Impuesto de Sucesiones (Inheritance Tax) "in full" because they live in another country. That is not the case. You file Modelo 650 with the AEAT, but you are entitled to the 99 % relief of the Comunitat Valenciana.
I often hear the same fear: "Since I live outside Spain, they will make me pay the full Impuesto de Sucesiones, without the reductions that locals get". It is a very widespread misunderstanding, and correcting it can make a significant financial difference. Let us separate two things that people mix up: where the tax is filed and which rules apply.
Where it is filed: with the State (AEAT)
The Impuesto de Sucesiones (Inheritance Tax) is devolved to the autonomous regions, but when the heir is a non-resident in Spain, it is filed with the State: the Tax Agency (AEAT), specifically the Oficina Nacional de Gestión Tributaria (National Tax Management Office). For an inheritance (mortis causa acquisition) the form is Modelo 650. A resident would file it with their autonomous region; a non-resident, with the AEAT.
But you apply the regional rules
An important point: for years, non-residents were forced to be taxed under the State rules alone, with no access to the reductions of the autonomous regions. That changed: the Court of Justice of the European Union, in its judgment of 3 September 2014 (Case C-127/12), held that this discrimination between residents and non-residents breached the free movement of capital.
After that judgment, the law was reformed to allow non-residents to apply the rules of the relevant autonomous region. And one important detail: subsequent Supreme Court case law (2018) extended that right to residents in countries outside the European Union as well. In other words, in general, regional rules can apply to you wherever you live — in Germany, in the United Kingdom after Brexit, or in the United States.
The 99 % Valencian relief
If the property you inherit is in the Comunitat Valenciana — Calp, Altea, Benissa, the whole Costa Blanca — the difference can be substantial. Through Law 6/2023 of 22 November, the Comunitat Valenciana grants a 99 % relief on the Inheritance Tax liability for the closest relatives: groups I and II, which are descendants (children, grandchildren), spouse and ascendants (parents, grandparents). This relief applies with effect from 28 May 2023.
And there is news for more distant relatives: Law 5/2025 of 30 May has approved a relief for group III (siblings, uncles, aunts, nephews and nieces), which Law 5/2026 of 31 July has kept. It comes in gradually: 25 % for deaths from 1 June 2026 and 50 % from 1 June 2027. Relatives by marriage, that is, in-laws such as a brother-in-law, are not covered.
Important: the relief is not automatic
- It must be applied correctly in the self-assessment and the requirements the law demands must be met: in an inheritance, the relief covers the assets declared in full in a self-assessment filed on time, or filed late before any formal request from the tax authorities (Article 12 bis.3 of Valencian Law 13/1997).
- Which regional rules apply to you depends on the connecting factor (where the deceased resided, where the assets are), and that is assessed case by case.
- The relationship with the deceased determines the group and therefore the relief. Inheriting from a parent is not the same as inheriting from an uncle.
Deadline: six months (which pass quickly)
The Inheritance Tax is self-assessed within a deadline of six months from the death. It is extendable if requested in time, but the six-month period starts on the date of death, and gathering the documentation for an international inheritance — certificates, translations, apostilles — takes time. That is why it is best to start early and not leave it to the last minute.
If you have inherited or are about to inherit a property on the Costa Blanca while living outside Spain, you are welcome to contact me. I can calculate your Inheritance Tax applying the Valencian relief that corresponds in your case, prepare Modelo 650 for the AEAT and coordinate all the documentation.
Frequently asked questions
Where do I file the Inheritance Tax as a non-resident?
With the State: the Tax Agency (AEAT), Oficina Nacional de Gestión Tributaria. For an inheritance you use Modelo 650. A resident would file it with their autonomous region; the non-resident, with the AEAT.
Am I entitled to the Valencian relief even if I live in another country?
Yes. Since the 2014 judgment of the Court of Justice of the EU (Case C-127/12) and the subsequent reform, non-residents can apply the relevant regional rules, including the 99 % relief of the Comunitat Valenciana for groups I and II.
And if I live outside the European Union?
Also. The Supreme Court case law of 2018 extended this right to residents in third countries, not only to those in the EU or the European Economic Area. The basis is the free movement of capital, which also protects against third States.
Does the 99 % relief apply on its own?
No. It must be applied in the self-assessment, and it only covers the assets declared in full in a self-assessment filed on time, or filed late before any formal request from the tax authorities (Article 12 bis.3 of Valencian Law 13/1997). That is why it is worth having the inheritance handled by an adviser familiar with the Valencian rules.
What deadline do I have for the Inheritance Tax?
Six months from the death, extendable if requested within the first five months. It is best to start early, because gathering the documentation for an international inheritance (apostilles and translations included) takes time.
Legal basis and official sources
- Ley 29/1987 del Impuesto sobre Sucesiones y Donaciones (DA 2.ª: no residentes y normativa autonómica)
- STJUE de 3 de septiembre de 2014, asunto C-127/12 (no residentes y beneficios autonómicos del ISD)
- Ley 6/2023, de 22 de noviembre, de la Generalitat (bonificación del 99 % del ISD, grupos I y II)
- Ley 5/2025, de 30 de mayo, de la Generalitat (amplía la bonificación del ISD al grupo III —solo colaterales de 2.º y 3.er grado por consanguinidad—: 25 % desde el 1-jun-2026 y 50 % desde el 1-jun-2027; DT 2.ª derogada y DF 4.ª modificada por la Ley 5/2026)
- Ley 5/2026, de 31 de julio, de la Generalitat (art. 22: redacción vigente del art. 12 bis de la Ley 13/1997 —25 % para el grupo III; apdo. 3: bienes declarados en plazo o fuera de plazo sin requerimiento previo; apdo. 4: documento público solo en donaciones—; art. 25: 50 % desde el 1-jun-2027; en vigor desde el 11-ago-2026)
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Keep reading
The full service: from the European Certificate of Succession (Certificado Sucesorio Europeo) to settling Inheritance Tax (ISD) with the Valencian relief applied.
International inheritances →As a non-resident heir, you will have tax obligations in Spain from the moment you acquire the property.
Taxes for non-residents →How to legalise and translate foreign documents so that they take effect in Spain.
Apostille and sworn translation of documents →