Inheritance and Gifts: Tax rules

Inheritance and gift tax (non-residents)

Inheritance Tax is levied on capital gains obtained by natural persons through inheritance, bequest or any other form of succession, and on money received by beneficiaries from life insurance, where the policy owner is a person other than the beneficiary.

The types of capital gains described above obtained by legal persons are not subject to this tax.

The tax is also levied on the acquisition of assets and rights by way of gift or any other inter vivos legal transaction for no consideration.

Where a natural person who is not resident in Spain receives an inheritance or a gift, they have to file an Inheritance Tax self-assessment with the Spanish Tax Agency (AEAT).

Where the deceased was non-resident or where immovable property located abroad is received by way of a gift, natural persons resident in Spain also have to file a self-assessment with the AEAT.

Within the AEAT, this tax is managed by the National Tax Management Office (ONGT).

You have to file a different Self-Assessment Form (650, 651 or 655) depending on whether the declaration concerns an inheritance, a gift or the extinction of usufruct.

The National Tax Management Office is responsible for managing the tax where this has not been transferred to any autonomous community. This applies in the following cases:

• Where the deceased was not resident in Spain at the date of death.
• Where the person liable to the tax (heir, legatee, beneficiary of life insurance) was not habitually resident in Spain at the date of death.
• Where the person liable to the tax (the recipient) was not habitually resident in Spain at the date on which they received the gift. Additionally, where the recipient is resident but the assets acquired by way of gift consist of immovable property located abroad.

Important: the tax yield payable to the Autonomous Cities of Ceuta or Melilla has not been transferred, as this tax is managed by the corresponding tax office not by the National Tax Administration Office.

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‘Mortis causa’ acquisitions. Form 650

Who is required to file Form 650?

Form 650 must be filed by heirs, legatees or beneficiaries of life insurance (natural persons) who are not habitually resident in Spain, or by residents acquiring assets or who are beneficiaries of life insurance from a deceased person who was not resident in Spain for tax purposes.

How to file the Self-Assessment Form

• ​Using a printed form.
  Download Form 650 from the Tax Agency's website and follow the instructions to complete it.
  The Self-Assessment Form, with the payment already made (if there is anything to pay), must be submitted to the National Tax Management Office (ONGT), Inheritance and Gifts (Non-residents) (Paseo Castellana 147, Planta baja, 28046, Madrid).To do this, it is advisable to book an appointment in advance to avoid having to wait, through the Tax Agency's electronic office , or by calling 901 200 351 / 91 290 13 40 for the service: Filing and completion. Inheritance and Gift Tax for non-residents.
• Using the form obtained using the help programme (Draft return).

  Please complete the form that is available on the Tax Agency's website . When you have completed it, you have to print out the form plus a cover sheet which gives your filing reference number and instructions on how to submit the form.

  Where the self-assessment shows that tax is payable, once the payment has been made, you have to submit the form to a Spanish Tax Agency office, together with the document or declaration showing or providing evidence of the taxable event, and the documentation referred to in Article 66 of the Regulation on Inheritance and Gift Tax.

  In all other cases, the form and the documentation should be submitted directly to a Spanish Tax Agency office.

  When you have filed the self-assessment accompanied by the relevant documentation, in order to comply with Article 87 of the Regulation on Inheritance and Gift Tax, you have to submit the original documentation listed in that article to the National Tax Management Office - ONGT (Paseo Castellana 147, Planta baja, 28046, Madrid) for processing and certification. To do this, it is advisable to book an appointment in advance to avoid having to wait, through the Tax Agency's electronic office , or by calling 901 200 351 / 91 290 13 40 for the service: Filing and completion. Inheritance and Gift Tax for non-residents.

  If you use this filing method, you will also need to go to the National Tax Administration Office (ONGT) in order to obtain a certificate as evidence of the filing.

  Important: remember to take the draft return cover sheet with you when you go to the ONGT.

• Filing the form online.

  By filling in and sending the form available from the Tax Agency's website , you will obtain a self-assessment for each person liable to the tax. You also have to submit the document or declaration showing or providing evidence of the taxable event giving rise to the tax and the documentation referred to in Article 66 of the Regulation on Inheritance and Gift Tax.

  In this way, you will receive the certification referred to in Article 87a of the Regulation on Inheritance and Gift Tax online, without having to go to the National Tax Management Office [ONGT] in person.
   

  The form can be filed by the taxable person when he or she is the only person liable, by a person authorised by the taxable persons or by an authorised agent acting on behalf of each and every one of the taxable persons.

  You will need to identify yourself with a digital signature (certificate or electronic ID card) or by means of the Cl@ve PIN identification system.

   

Documentation to be provided

Mandatory documentation:

• The original and an uncertified copy of the Deed of Acceptance of Inheritance.
• Failing that, two copies of the Inventory of Assets and Heirs, giving the personal details of the deceased and the heirs, providing an address for the service of notifications, a detailed list of the assets and rights forming part of the inheritance, stating their value at the date of death, and the charges, debts and expenditure that you wish to have deducted.
• A copy of the Death Certificate.
• A copy of the Certificate from the Central Registry of Last Wills.
• A copy of the Will or the Inheritance certificate.
• Representation of taxable persons not resident in Spanish territory (taxpayers with limited tax liability based on Spanish-sourced income):
  • When not resident in another Member State of the European Union (EU) or in a country in the European Economic Area (EEA) with which there are regulations on mutual assistance for exchanging tax information and tax collection, they will be obliged to appoint a natural or legal person resident in Spain to represent them before the tax authorities in relation to their obligations for this tax.
  • When they reside in another EU Member State or EEA country with which there are regulations on mutual assistance for exchanging tax information and collection, they are not obliged to appoint a representative resident in Spain and may interact with the tax authorities through the persons who represent them in accordance with the general rules on legal and voluntary representation, so as to facilitate the procedures and formalities related to the tax.

For this purpose, they can use the form for representation in procedures initiated at the request of taxpayers, available on the Tax Agency's website , which must be submitted together with the self-assessment (no photocopies).

The representation form must include the express acceptance of the representative, authorising the holder to deal with the tax authorities on the taxpayer's behalf regarding all their inheritance and gift tax obligations.

Other documentation to be provided, where appropriate:

• A copy of the IBI (Immovable Property Tax) receipt, and the title deeds for the immovable property or, failing that, an Uncertified Registration Annotation.
• A copy of the insurance policies, or a certificate from the insurance company.
• A certificate from the bank showing the balances on accounts and/or the securities deposited with the bank at the date of death.
• Documentary evidence for any charges, fees, debts and expenditure that may be deductible, and also documentary evidence of the age of the heirs.
• A copy of the passport, identity document or the Non-national Identification Number (NIE) certificate of the heirs and the tax representative in Spain.
• A copy of the documentation for vehicles forming part of the inheritance (technical inspection certificate, vehicle registration document).

• Documentary evidence of the taxpayer’s disability with a certificate issued by the competent body.

• Documentary evidence of the theoretical value of the shares in the capital of legal entities whose shares are not listed on the stock exchange, by providing a certificate from the administrator of the entity indicating the number of shares in the entity (distinguishing between them in the event that they have different face values), the number of shares owned by the deceased and the theoretical value of each share. Evidence must be provided of the theoretical value assigned to each shareholding.

• Copy of the certificate from the General Register of Life Insurance Contracts.

NB:

If the documents were issued by officials or authorities in another country, they must bear a Hague Convention Apostille and be accompanied by a sworn translation.

If you have a European Certificate of Succession (Regulation (EU) No 650/2012), attesting that you are an heir or legatee, you may submit a certified true copy of it instead of the death certificate and the Will or an inheritance certificate. If the European Certificate of Succession is in a language other than Spanish, it must be accompanied by a translation.

Filing deadlines

For acquisition ‘mortis causa’, including for beneficiaries under life insurance policies, the deadline for filing the declaration is six months from the date of death.

An extension may be requested within five months of the deadline, for a period equal to the period initially allowed for filing.

For this purpose, the following options are available:

1. Fill in an application form for an extension, which can be accessed from Procedures Non-residents, Form 650. Request for extension of the deadline for filing inheritance tax for non-residents. You will need to sign in with an electronic ID card or certificate or using the Cl@ve PIN identification system.

2. Submit a registered written request (in person or online) accompanied by the death certificate, indicating the details of the deceased, the heirs and their degree of kinship with the deceased, the situation and approximate value of the assets and rights, and the reasons for requesting the extension, as well as an address for notification purposes and an email address. (If the submission is made through the online register, it is also necessary to sign in with a certificate or electronic ID or using the Cl@ve PIN identification system).

Table showing divisions of responsibilities and applicable State / Autonomous Communities (AC) legislation of the common tax system INHERITANCE

INHERITANCE: taxable event under Article 3(a) and (c) of Law 29/1987 on Inheritance and Gift Tax -

(Acquisition of property and rights by inheritance, legacy or any other title of succession)

Residence in Spanish territory: Personal Income Tax (IRPF) rules

If you are resident in Spanish territory, residence in an A C is determined by the provisions of Article 28 of Law 22/2009 (Autonomous Community funding).

Life insurance

LIFE INSURANCE: taxable event Article 3(c) of Law 29/1987 on Inheritance and Gift Tax
(Receipt of sums of money by life insurance beneficiaries).

The State is responsible for sums of money received by life insurance beneficiaries that are not combined with other assets or rights acquired ‘mortis causa’, and the applicable legislation is national legislation.

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‘Inter vivos’ acquisitions Form 651

Who is required to file Form 651?

Natural persons who are not resident in Spanish territory in respect of assets and rights which are situated, used or may be exercised in Spanish territory that they acquire by gift, or by any other legal transaction free of charge, and inter vivos.

The same applies to resident persons who acquire property located abroad by gift, or by any other legal transaction free of charge, and inter vivos.

How to file the Self-Assessment Form

• ​Using a printed form.
  Download Form 651 from the Tax Agency's website  and follow the instructions to complete it.
  The Self-Assessment Form, with the payment already made (if there is anything to pay), must be submitted to the National Tax Management Office (ONGT), Inheritance and Gifts (Non-residents) (Paseo Castellana 147, Planta baja, 28046, Madrid). To do this, it is advisable to book an appointment in advance to avoid having to wait, through the Tax Agency's electronic office , or by calling 901 200 351 / 91 290 13 40 for the service: Filing and completion. Inheritance and Gift Tax for non-residents.

• Using the form obtained using the help programme (Draft return).

  Please complete the form that is available on the Tax Agency's website . When you have completed it, you have to print out the form plus a cover sheet which gives your filing reference number and instructions on how to submit the form.

  Where the self-assessment shows that tax is payable, once the payment has been made, you have to submit the form to a Spanish Tax Agency office, together with the document or declaration showing or providing evidence of the taxable event, and the documentation referred to in Article 66 of the Regulation on Inheritance and Gift Tax.

  In all other cases, the form and the documentation should be submitted directly to a Spanish Tax Agency office.

  When you have filed the self-assessment accompanied by the relevant documentation, in order to comply with Article 87 of the Regulation on Inheritance and Gift Tax, you have to submit the original documentation listed in that article to the National Tax Management Office - ONGT (Paseo Castellana 147, Planta baja, 28046, Madrid) for processing and certification. To do this, it is advisable to book an appointment in advance to avoid having to wait, through the Tax Agency's electronic office , or by calling 901 200 351 / 91 290 13 40 for the service: Filing and completion. Inheritance and Gift Tax for non-residents.

  If you use this filing method, you will also need to go to the National Tax Administration Office (ONGT) in order to obtain a certificate as evidence of the filing.

  Important: remember to take the draft return cover sheet with you when you go to the ONGT.

• Filing the form online.

  By filling in and sending the form available from the Tax Agency's website , you will obtain a self-assessment for each person liable to the tax. You also have to submit the document or declaration showing or providing evidence of the taxable event giving rise to the tax and the documentation referred to in Article 66 of the Regulation on Inheritance and Gift Tax.

  In this way, you will receive the certification referred to in Article 87a of the Regulation on Inheritance and Gift Tax online, without having to go to the National Tax Management Office [ONGT] in person.
   

  The form can be filed by the taxable person when he or she is the only person liable, by a person authorised by the taxable persons or by an authorised agent acting on behalf of each and every one of the taxable persons.

  You will need to identify yourself with a digital signature (certificate or electronic ID card) or by means of the Cl@ve PIN identification system.

Documentation to be provided

Mandatory documentation

• The original and an uncertified copy of the gift deed.
• Failing this, a private gifting document, in duplicate, which must state the identification details of the gift donor and the gift recipients (name, tax identification number (NIF), and full address), an address for notification purposes, and a detailed list of the gifted assets and rights, indicating their value.
• You must provide a copy of the identity document, passport, or the certified Foreigner’s National Identification Number (NIE) of the gift recipients.
• Representation of taxable persons not resident in Spanish territory (taxpayers with limited tax liability based on Spanish-sourced income):
  • When not resident in another Member State of the European Union (EU) or in a country in the European Economic Area (EEA) with which there are regulations on mutual assistance for exchanging tax information and tax collection, they will be obliged to appoint a natural or legal person resident in Spain to represent them before the tax authorities in relation to their obligations for this tax.
  • When they reside in another EU Member State or EEA country with which there are regulations on mutual assistance for exchanging tax information and collection, they are not obliged to appoint a representative resident in Spain and may interact with the tax authorities through the persons who represent them in accordance with the general rules on legal and voluntary representation, so as to facilitate the procedures and formalities related to the tax.

For this purpose, they can use the form for representation in procedures initiated at the request of taxpayers, available on the Tax Agency's website (https://sede.agenciatributaria.gob.es), which must be submitted together with the self-assessment (no photocopies).

​The representation form must include the express acceptance of the representative, authorising the holder to deal with the tax authorities on the taxpayer's behalf regarding all their inheritance and gift tax obligations.

Other documentation to be submitted, where appropriate

• Documentary evidence of the theoretical value of the shares in the capital of legal entities whose securities are not listed on the stock exchange, providing a certificate from the manager of the entity indicating the number of shares in the entity (distinguishing them if they have different face values), the number of shares gifted, and the theoretical value of each share. Evidence must be provided of the theoretical value assigned to each shareholding.
   

NB:

If the documents were issued by officials or authorities in another country, they must bear a Hague Convention Apostille and be accompanied by a sworn translation.

Filing time limits

Thirty working days from the day following conclusion of the deed or contract.

Table showing divisions of responsibilities and applicable State / Autonomous Communities (AC) legislation of the common tax system GIFTS

GIFT Taxable event under Article 3(b) of Law 29/1987 on Inheritance and Gift Tax

(Acquisition of assets and rights by gifting or any other legal transaction free of charge ‘inter vivos’)

Residence in Spanish territory: as established in the IRFF regulations If you are a resident in Spanish territory, residence in CC. AA is determined by the provisions of art. 28 of Law 22/2009 (CC.AA. financing)

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Consolidation of ownership due to extinction of usufruct. Form 655

Who is required to file the form?

Legal owners who are consolidating ownership as a result of the extinction of usufruct.

How to file the Self-Assessment Form

• Using a printed form.

  Download Form 655 from the Tax Agency's website and follow the instructions to complete it.

  The Self-Assessment Form, with the payment already made (if there is anything to pay), must be submitted to the National Tax Management Office (ONGT), Inheritance and Gifts (Non-residents) (Paseo Castellana 147, Planta baja, 28046, Madrid). To do this, it is advisable to book an appointment in advance to avoid having to wait, through the Tax Agency's electronic office , by calling 901 200 351 / 91 290 13 40 for the service: Filing and completion. Inheritance and Gift Tax for non-residents.

• File using the form obtained using the help programme (draft return).

  Please complete the form that is available on the Tax Agency’s website . When you have completed it, you have to print out the form plus a cover sheet which contains your filing reference number and instructions on how to submit the form.

  Where the self-assessment shows that tax is payable, and once the payment has been made, you have to submit the form to a Spanish Tax Agency office, together with the document or declaration showing or providing evidence of the taxable event and the documentation referred to in Article 66 of the Regulation on Inheritance and Gift Tax.

  In all other cases, the form and the documentation should be submitted directly to a Spanish Tax Agency office.

  When you have filed the self-assessment accompanied by the relevant documentation, in order to comply with Article 87 of the Regulation on Inheritance and Gift Tax, you have to submit the original documentation listed in that article to the National Tax Management Office - ONGT (Paseo Castellana 147, Planta baja, 28046, Madrid) for processing and certification. To do this, it is advisable to book an appointment in advance to avoid having to wait, through the Tax Agency's electronic office , or by calling 901 200 351 / 91 290 13 40 for the service: Filing and completion. Inheritance and Gift Tax for non-residents.
  
  If you use this filing method, you will also need to go to the National Tax Administration Office (ONGT) in order to obtain a certificate as evidence of the filing.
  
  Important: remember to take the draft return cover sheet with you when you go to the ONGT.

• Filing the form online.

  This can be done by filling in and sending the form available from the Tax Agency's website. , which will provide a self-assessment for each person liable to the tax. You also have to submit the document or declaration showing or providing evidence of the taxable event giving rise to the tax and the documentation referred to in Article 66 of the Regulation on Inheritance and Gift Tax.

  In this case, you will receive the certification referred to in Article 87 bis of the Regulation on Inheritance and Gift Tax online, without having to go to the ONGT in person.
   

  The form can be filed by the taxable person when he or she is the only person liable, by a person authorised by the taxable persons or by an authorised agent acting on behalf of each and every one of the taxable persons.

  You will need to identify yourself with a digital signature (certificate or electronic ID card) or by means of the Cl@ve PIN identification system.

   

Documentation to be provided

• The original and an uncertified copy of the notarial document providing evidence of consolidation of ownership in the person of the first or subsequent legal owners.
• Failing that, two copies of the document recording the extinction of the usufruct and the resulting consolidation of ownership, which must give the personal details of the usufructuary and the legal owner (name, ID [NIF] and full address), an address for the service of notifications and a detailed list of the assets and rights that have been consolidated.
• The usufructuary’s death certificate or, where ownership has been consolidated for other reasons, documentation providing evidence of the reason for consolidation.
• You must provide a copy of the identity document, passport or the Non-national Identification Number (NIE) certificate of the person liable for tax (the legal owner).

• Original or uncertified copy of the notarial document showing the separation of ownership. When the taxable person consolidating ownership is not the first but the second or subsequent bare owner, it will be necessary to submit the title certifying acquisition of the bare ownership by the current owner.

• Failing this, a private document showing the separation of ownership. When the taxable person consolidating ownership is not the first but the second or subsequent bare owner, it will be necessary to submit a private document certifying acquisition of the bare ownership by the current owner.

• Representation of taxable persons not resident in Spanish territory (taxpayers with limited tax liability based on Spanish-sourced income):

  • When not resident in another Member State of the European Union (EU) or in a country in the European Economic Area (EEA) with which there are regulations on mutual assistance for exchanging tax information and tax collection, they will be obliged to appoint a natural or legal person resident in Spain to represent them before the tax authorities in relation to their obligations for this tax.

  • ​When they reside in another EU Member State or EEA country with which there are regulations on mutual assistance for exchanging tax information and collection, they are not obliged to appoint a representative resident in Spain and may interact with the tax authorities through the persons who represent them in accordance with the general rules on legal and voluntary representation, so as to facilitate the procedures and formalities related to the tax.

For this purpose, they can use the form for representation in procedures initiated at the request of taxpayers, available on the Tax Agency's website (https://sede.agenciatributaria.gob.e), which must be submitted together with the self-assessment (no photocopies).

The representation form must include the express acceptance of the representative, authorising the holder to deal with the tax authorities on the taxpayer's behalf regarding all their inheritance and gift tax obligations.

NB:

If the documents were issued by officials or authorities in another country, they must bear a Hague Convention Apostille and be accompanied by a sworn translation.

Filing deadlines

If the usufruct was extinguished due to the death of the usufructuary, the deadline for filing the self-assessment is six months, commencing from the date of death.

In all other cases, the deadline is thirty working days, commencing from the day after the usufruct was extinguished.

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Information for each Autonomous Community

Inheritance and Gift Tax will be levied throughout Spain.

The Autonomous Community of Navarre and the Autonomous Community of the Basque Country (Provincial Councils) have adopted their own legislation: Economic Agreement with the Basque Country and Economic Agreement with Navarre.

For other Autonomous Communities under the common system, the Inheritance and Gift Tax is a State tax, the yield on which has been transferred to them. The State also delegates responsibility to them for the administration and settlement, collection, inspection and administrative review. They can also assume regulatory powers.

Responsibility for the administration and settlement of Inheritance and Gift Tax will lie with the tax office in Ceuta or Melilla, in the following cases:

• acquisitions mortis causa and amounts received by beneficiaries of life insurance policies. when the deceased’s habitual residence on the date on which tax becomes chargeable had been in Ceuta or Melilla for the previous five-year period, counted from date to date, ending on the day before the date on which tax becomes chargeable.
• Inter vivos acquisitions. For properties located in Ceuta or Melilla or when the gift donor is resident in Ceuta or Melilla.

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Information from Local Authorities

Some municipal councils have introduced a tax on those who inherit or receive a donation due to the increase in value of urban property (buildings and building land).

Access to the Local Government Map to select the relevant municipality.

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