Do non-residents pay inheritance tax in Spain?

Yes. If the asset is located in Spain, Spanish inheritance tax applies by real obligation, even if the heir has never lived in Spain. The return is filed with the AEAT national office.

What is gift tax in Spain?

Gift tax is the donation branch of the Impuesto sobre Sucesiones y Donaciones, declared on Modelo 651 by the person receiving the gift, generally within 30 business days of the donation deed.

Can non-residents use regional reductions?

Yes. Following CJEU judgment C-127/12 and Law 26/2014, non-residents may apply the rules of the autonomous region where the Spanish asset with the greatest value is located.

What is the deadline for Modelo 650?

Six months from the date of death. An extra six-month extension can be requested within the first five months.

Does gifting a Spanish property create other taxes?

Yes. The donee pays gift tax, the non-resident donor declares the capital gain on Modelo 210, and municipal plusvalía is also payable to the town hall.

Does inheriting a property mean I must file Modelo 210?

Yes. From the moment you own the property you must file Modelo 210 each year for your ownership share — imputed income if it is at your disposal, or rental income if you let it.

Spanish Inheritance and Gift Tax for Non-Residents (Modelo 650 & Modelo 651)

When a non-resident inherits or receives as a gift a property located in Spain, Spanish Inheritance and Gift Tax (Impuesto sobre Sucesiones y Donaciones, ISD) applies by "real obligation" — the tax is due in Spain because the asset is in Spain, regardless of where the heir or donee lives. Inheritances are declared on Modelo 650 and gifts on Modelo 651. Both are completely separate from the annual Modelo 210 non-resident income tax return.

Modelo 650 — inheritance

Filed by each heir for their individual share. Deadline: 6 months from the date of death, extendable by a further 6 months if requested within the first 5 months.

Modelo 651 — gift

Filed by the person receiving the gift (donee), normally within 30 business days of the deed of donation.

Progressive rates

The state scale runs roughly from 7.65% to 34%, adjusted by multiplier coefficients based on kinship and pre-existing wealth.

Regional reductions apply

Since the CJEU ruling of 3 September 2014 (C-127/12), non-residents may apply the reductions of the autonomous region where the Spanish asset is located.

Who has to file in Spain

A non-resident heir or donee must file when the inherited or gifted asset is located in Spanish territory, or when rights over it can be exercised in Spain. Non-residents file with the AEAT (Oficina Nacional de Gestión Tributaria), not with a regional tax office, but they can claim the reductions and allowances of the region where the property is situated. Where several heirs exist, each one files their own Modelo 650 for their individual share — there is no single joint return.

How the taxable base is calculated

The starting point is the reference value (valor de referencia) of the property, or its market value if higher, plus any other assets and rights, minus deductible debts and expenses. From that net value, kinship reductions apply (Group I and II descendants, spouses; Group III siblings, nephews, in-laws; Group IV others). The resulting base goes through the progressive scale, and the result is multiplied by the coefficient for the heir's group and prior wealth. Many regions — Andalucía, Comunidad Valenciana, Madrid, Baleares, Murcia — then apply very large rebates for close family, which can reduce the final bill to almost nothing.

Inheritance tax vs gift tax: key differences

Inheritance tax is triggered by death and is calculated on the estate share received; gift tax is triggered by a lifetime transfer and is normally taxed with fewer reductions. Crucially, a gift also creates a capital gain for the donor: the person giving the property away must declare the gain between acquisition value and the value at the time of the gift (Modelo 210 for non-resident donors). Inheritance, by contrast, produces no capital gain for the deceased ("plusvalía del muerto" is not taxed). Municipal plusvalía (IIVTNM) is due in both cases.

How this differs from Modelo 210

Modelo 210 is the ongoing non-resident income tax (IRNR): imputed income for a property at your own disposal, rental income if it is let, or the capital gain when you sell. Modelo 650 and 651 are one-off wealth transfer taxes. Inheriting a Spanish property therefore starts two obligations: paying ISD on the transfer, and filing Modelo 210 every year from that point onwards for the period you own it.

Practical steps for a non-resident heir

Obtain the death certificate and the certificate of last wills (Registro de Actos de Última Voluntad); get a NIE for every heir; sign the deed of acceptance of inheritance before a Spanish notary (in person or via power of attorney); file Modelo 650 and pay within 6 months; register the property in the Land Registry; pay municipal plusvalía; update the Cadastre; and from the following year file Modelo 210 for your share.

ISD vs Modelo 210 at a glance

ISD vs Modelo 210 at a glance
Concept	Modelo 650 / 651 (ISD)	Modelo 210 (IRNR)
Trigger	Death or lifetime gift	Owning, renting or selling a property
Frequency	One-off	Annual or quarterly
Filed by	Each heir / the donee	Each owner
Deadline	6 months (inheritance) / 30 business days (gift)	31 December (imputed), annual (rental), 4 months (sale)
Base	Value of assets received	Imputed income, net rent or gain

Frequently asked questions

Official references

Ley 29/1987, de 18 de diciembre, del Impuesto sobre Sucesiones y Donaciones
Real Decreto 1629/1991 (Reglamento del ISD)
Ley 26/2014 (adaptation to CJEU judgment C-127/12, 3 September 2014)
AEAT — Modelo 650 and Modelo 651 filing information for non-residents

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