Inheritance Tax in Spain for Non-Residents: the Andalucia 99% Bonificacion Explained (2026)

Inheritance tax in Spain for non-residents who own Andalucia property is far lower than most owners fear. A non-resident child inheriting a EUR 500,000 Marbella apartment typically owes zero in tax, and in most family cases the bill is nil. Since 11 April 2019 (Decreto-ley 1/2019, later consolidated into Ley 5/2021), Andalucia applies a 99% bonificacion on the ISD cuota for direct family heirs (Art 39), a separate EUR 1,000,000 reduction on the taxable base (Art 28), and its own autonomous progressive tariff from 7% to 26% (Art 37). The 2026 Andalusia budget law (Ley 8/2025, BOE-A-2026-945, effective 1 January 2026) further tightened the inter vivos donation rules. After a decade of European and Spanish court rulings, non-residents can access the same relief as residents regardless of whether they live inside or outside the EU.

What is the 99% bonificacion and who qualifies in Andalucia?

The 99% bonificacion is a regional relief on the ISD tax cuota (the tax payable after the progressive tariff is applied to the taxable base), introduced by Decreto-ley 1/2019 (effective 11 April 2019) and consolidated in Ley 5/2021, Art 39. It applies to heirs and legatees in Groups I and II, which under Art 20 of the state ISD law (Ley 29/1987) cover descendants under 21 (Group I), and descendants aged 21 and over, the spouse, ascendants and adoptants (Group II). For deaths on or after 1 January 2022, those heirs also receive a EUR 1,000,000 reduction on the taxable base before the tariff is even applied (Art 28), which means most family inheritances fall below the threshold entirely.

The bonificacion sits on top of the state-level ISD framework. The state law (Ley 29/1987) sets the kinship groups and the connection-point rules, while the regional law (Ley 5/2021) layers in the bonificacion, the EUR 1,000,000 reduction, the autonomous tariff (Art 37), and the kinship multipliers (Art 38). The Junta de Andalucia’s own tax agency, ATRIAN, publishes the full schedule of benefits on its official page, confirming that the bonificacion is 99% of the cuota for Group I and II heirs, and that it covers both inheritances and life insurance payouts. Registered parejas de hecho in Andalucia are assimilated to spouses under the Art 26 equiparacion rules, so a registered partner qualifies for the same 99% relief as a married spouse.

How can a non-resident access the Andalucia bonificacion?

The path to equal treatment runs through the Court of Justice of the European Union. In its 2014 ruling (Case C-127/12, the Welte case), the court held that Spain’s practice of taxing non-residents under the state ISD rules while letting residents apply their region’s bonificaciones breached the EU freedom of movement of capital. Spain responded with Ley 26/2014, which lets non-residents apply the regional legislation where the connection point (the location of the inherited assets, or the deceased’s last Spanish residence) points to a particular autonomous community.

The Spanish Supreme Court later extended the principle beyond EU citizens. Ruling on non-EU heirs, the court found that denying them the regional bonificaciones while granting them to EU non-residents was itself discriminatory under the free movement of capital. The practical result: a non-resident child in the UK, US or Norway inheriting a Marbella property now applies the same 99% bonificacion as a resident child in Malaga, provided the inherited property is in Andalucia and the heir qualifies under Group I or II. The connection point for non-residents is the location of the inherited assets, not the heir’s country of residence, so a British heir inheriting a Costa del Sol apartment applies the Andalucia rules regardless of where they live.

This matters because the autonomous ISD tariff, applied without the bonificacion, would still produce a bill of tens of thousands of euros on a typical Marbella inheritance. The regional relief cuts that by 99%, leaving roughly 1% of the cuota. A non-resident heir who does not know the bonificacion applies to them may overpay, or worse, fail to file at all and incur penalties. The filing route for non-residents is centralised through the Agencia Tributaria’s Non-Resident office in Madrid, not the regional Andalucia tax office, but the bonificacion is still claimed on the same Modelo 650.

What ISD tariff applies in Andalucia in 2026?

Since 1 January 2022, Andalucia applies its own autonomous progressive tariff under Art 37 of Ley 5/2021, replacing the state tariff of 7.65% to 36.50% found in Art 21 of Ley 29/1987. The Andalusia tariff runs from 7% on the first EUR 8,000 of taxable base up to 26% on amounts above EUR 800,000, as published on the Junta de Andalucia’s ISD tariff page. The top rate is 10.5 percentage points lower than the state scale’s 36.50%, which reduces the pre-bonificacion cuota before the 99% relief is even applied.

Base liquidable up to EUR	Cuota integrale EUR	Rate on excess
0	0	7%
8,000	560	8%
15,000	1,120	10%
30,000	2,620	12%
50,000	5,020	14%
70,000	7,820	16%
100,000	12,620	18%
150,000	21,620	20%
200,000	31,620	22%
400,000	75,620	24%
800,000	171,620	26%

The lower autonomous rates are a structural advantage. A Group II heir inheriting above the EUR 1,000,000 reduction threshold faces a smaller cuota integrale than under the state tariff, so the 1% they pay after the 99% bonificacion is also smaller. The kinship multiplier (Art 38) is then applied: 1.0 for Groups I and II, 1.5 for Group III, 1.9 for Group IV. For Group II, the multiplier is 1.0, so the cuota tributaria equals the cuota integrale with no uplift. Only then does the 99% bonificacion (Art 39) cut the final amount.

How much tax would a non-resident pay on a Andalucia property?

The answer depends on the heir’s kinship group and the property’s value. For a Group II heir (adult child, spouse, parent) inheriting an Andalucia property worth up to EUR 1,000,000, the effective tax is zero: the EUR 1,000,000 reduction on the taxable base (Art 28) zeroes out the base, so no cuota is generated. For inheritances above EUR 1,000,000, the 99% bonificacion cuts the cuota to roughly 1% of what the autonomous tariff would produce. A non-resident sibling (Group III) or unmarried partner (Group IV) pays the full autonomous tariff with no bonificacion, which can reach five or six figures on a typical Costa del Sol property.

Example 1: EUR 500,000 apartment, Group II heir

Step	Calculation	Amount
Inherited property value	Market value (or cadastral reference value if higher)	EUR 500,000
Less: Group II reduction (Art 28, Ley 5/2021)	EUR 1,000,000 cap	EUR 0 taxable base
ISD cuota before bonificacion	Autonomous tariff on EUR 0	EUR 0
99% bonificacion	99% of EUR 0	EUR 0
Effective tax payable		EUR 0

In this case the EUR 1,000,000 reduction alone zeroes out the tax, so the bonificacion is not even needed. The heir files Modelo 650 declaring zero cuota, but the filing itself remains mandatory within the six-month deadline.

Example 2: EUR 1,500,000 villa, Group II heir

For a EUR 1,500,000 property inherited by a Group II heir, the first EUR 1,000,000 is reduced, leaving EUR 500,000 of taxable base. The Andalusia autonomous tariff (Art 37) produces a cuota integrale of EUR 75,620 on the first EUR 400,000 plus 24% on the remaining EUR 100,000 (EUR 24,000), totalling EUR 99,620. The 1.0 kinship multiplier (Art 38) leaves it unchanged. The 99% bonificacion (Art 39) then relieves EUR 98,624, leaving an effective tax of roughly EUR 996.

Step	Calculation	Amount
Inherited property value	Market value (or cadastral reference value if higher)	EUR 1,500,000
Less: Group II reduction (Art 28, Ley 5/2021)	EUR 1,000,000 cap	EUR 500,000 taxable base
ISD cuota integrale	Autonomous tariff on EUR 500,000 (Art 37)	approx. EUR 99,620
Kinship multiplier (Group II, Art 38)	1.0	EUR 99,620
99% bonificacion (Art 39)	99% of EUR 99,620	EUR 98,624 relieved
Effective tax payable		approx. EUR 996

The 1.0 kinship multiplier for Group II means the cuota tributaria equals the cuota integrale with no uplift. The bonificacion then cuts the final amount to 1% of the tariff output. A non-resident heir who does not claim the bonificacion on Modelo 650 would face the full EUR 99,620 bill, which is why understanding the relief is critical even when the filing deadline has not been missed.

What kinship multipliers apply to Andalucia inheritance tax in 2026?

Since 1 January 2022, Andalucia has replaced the old wealth-based sliding scale of kinship coefficients with fixed multipliers that depend only on the heir’s group. Art 38 of Ley 5/2021 sets the coeficiente multiplicador at 1.0 for Groups I and II, 1.5 for Group III and 1.9 for Group IV, as published on the Junta de Andalucia’s Cuota Tributaria page. The multiplier is applied to the cuota integrale (the raw tariff output) to produce the cuota tributaria, before the bonificacion is applied.

ISD group	Heir relationship	Kinship multiplier	Bonificacion?	Base reduction
Group I	Child or grandchild under 21	1.0	Yes (99%)	EUR 1,000,000
Group II	Child, grandchild, spouse, parent	1.0	Yes (99%)	EUR 1,000,000
Group III	Sibling, nephew, niece, in-law	1.5	No	EUR 10,000
Group IV	Non-relative, unregistered partner	1.9	No	None (state default)

For a Group II heir, the multiplier of 1.0 means the cuota tributaria equals the cuota integrale with no uplift, and the 99% bonificacion then cuts it to 1% of the tariff output. For a Group III sibling, the 1.5 multiplier inflates the cuota by 50% before any relief, and no bonificacion applies, so the full multiplied amount is payable. A sibling inheriting a EUR 500,000 Marbella apartment receives only the EUR 10,000 Group III reduction, leaving EUR 490,000 of taxable base; the autonomous tariff produces a cuota into five figures, the 1.5 multiplier pushes it higher, and no regional bonificacion offsets it.

What is Modelo 650 and when does a non-resident file it?

Modelo 650 is the self-assessment form for ISD on acquisitions mortis causa, filed by the heir with the Agencia Tributaria (the state tax authority). Non-residents file it with the National Tax Management Office for Non-Residents in Madrid, not with the regional Andalucia tax office, because non-resident ISD is administered centrally by the AEAT even when the regional bonificacion applies.

The filing deadline is six months from the date of death, confirmed on the Agencia Tributaria’s official Form 650 deadline page. An extension of a further six months is available, but the request must be submitted within the first five months of the initial period. Non-EU heirs must appoint a Spanish-based tax representative to handle the filing and act as the point of contact for the AEAT; EU and EEA heirs are not required to but usually do, because the paperwork demands a Spanish NIE, apostilled foreign documents and a sworn Spanish translation of any document not issued in Spanish.

A practical Modelo 650 timeline for a non-resident heir

Week	Action	Detail
Week 1	Obtain death certificate and will	Request the death certificate from the relevant foreign registry; obtain the certificate from the General Registry of Last Will Acts (Certificado de Ultimas Voluntades) from the Spanish Ministry of Justice
Weeks 2-4	Apostille and translate	All foreign documents must carry a Hague Apostille and a sworn Spanish translation; apply for the heir’s NIE if not already held
Weeks 4-8	Appoint tax representative (non-EU)	Non-EU heirs must appoint a Spanish-based representante fiscal; EU heirs may do so voluntarily
Weeks 6-10	Obtain property valuation	The taxable value is the market value or the cadastral reference value (valor de referencia), whichever is higher; commission a tasacion if the estate is large or contested
Weeks 10-16	Prepare the escritura de aceptacion	The deed of acceptance of inheritance (escritura publica) is signed before a Spanish notary, listing the heirs, assets and shares
Weeks 16-20	File Modelo 650	Submit the self-assessment with the AEAT Non-Resident office in Madrid; claim the 99% bonificacion and the EUR 1,000,000 reduction on the form
By month 6	Deadline	The six-month deadline runs from the date of death; if more time is needed, request the extension within the first five months

The Agencia Tributaria’s documentation page lists the mandatory papers: the original or certified deed of acceptance of inheritance, the death certificate, the certificate from the General Registry of Last Will Acts (even if negative), a copy of the will or declaration of heirs, and for property, the IBI receipt or a simple registry note. Foreign-issued documents must carry a Hague Apostille and a sworn translation. For a detailed walkthrough of the form itself, see the companion guide on filing the Modelo 650.

How does the Andalucia bonificacion interact with the autonomous ISD tariff?

The ISD calculation is a four-stage process: first the autonomous tariff (Art 37) produces a cuota integrale, then the kinship multiplier (Art 38) produces the cuota tributaria, then the regional bonificacion (Art 39) reduces it. The Andalusia tariff is a progressive scale running from 7% on the first EUR 8,000 of taxable base up to 26% on amounts above EUR 800,000, which is lower than the state tariff of 7.65% to 36.50% at every bracket. The cuota integrale is then multiplied by the kinship coefficient fixed in Art 38 (1.0 for Groups I and II, 1.5 for Group III, 1.9 for Group IV), producing the cuota tributaria.

The Andalucia bonificacion sits at the very end of the chain. It does not change the tariff, the base or the multiplier; it cuts the final cuota tributaria by 99%. For a Group II heir inheriting above the EUR 1,000,000 reduction threshold, the mechanic is: apply the EUR 1,000,000 reduction to the base, apply the autonomous tariff, apply the 1.0 kinship multiplier, then apply the 99% bonificacion to the resulting cuota. The heir pays the remaining 1%.

How did Ley 8/2025 change the donation bonificacion in 2026?

Ley 8/2025, the Andalusia budget law for 2026 (BOE-A-2026-945, published in the BOE on 16 January 2026, effective 1 January 2026), amended Art 40 of Ley 5/2021, which governs the 99% bonificacion on inter vivos donations. The reform tightened the formalisation requirements while loosening the threshold at which a public deed becomes mandatory.

The key change is that the public deed is now only required when the taxable base of the donation exceeds EUR 5,000 (previously, all inter vivos gifts required a public deed for the bonificacion). Below that threshold, a private document suffices. However, for cash donations above EUR 5,000, the reform requires the public deed to be formalised within one month of the delivery of the funds, with the origin of those funds explicitly declared in the deed itself. Instalment donations of a fixed total amount must now be formalised in a single escritura publica covering all planned transfers, and the simultaneous-delivery requirement is deemed met when the first instalment coincides with the signing of the deed.

The bonificacion still applies only to assets spontaneously declared by the taxpayer, not those discovered by the tax authority following a requirement. And the 99% relief for donations remains available only to Groups I and II, the same kinship groups as for inheritances. For a full treatment of the donation route, see the companion guide on gifting property in Spain.

Does the bonificacion apply to gifts as well as inheritances?

Yes, but with the conditions tightened by Ley 8/2025. The Junta de Andalucia confirms that for adquisiciones inter vivos, the same 99% bonificacion applies to Groups I and II. The post-2026 rules require a public deed when the taxable base exceeds EUR 5,000, and cash gifts above that threshold must be formalised in a public deed within one month of delivery with the origin of funds justified. Informal bank transfers below EUR 5,000 may qualify without a public deed, but the spontaneous-declaration requirement still applies.

The bonificacion for gifts remains a powerful estate planning tool, because it lets a parent transfer a Marbella property to a child during their lifetime with the same 99% relief as on death, but the formalisation cost (notary and registry fees) and the new one-month deadline for cash donations must be weighed against the benefit. The bonificacion does not apply to assets outside Andalucia. A non-resident heir inheriting a property in Madrid and a bank account in Andalucia would apply the Andalucia bonificacion only to the Andalucia-linked assets, and the Madrid regional rules to the Madrid property. The connection point for non-residents is the location of the assets, not the heir’s residence. For a broader treatment of the planning options, see inheritance planning for Spanish property.

What should a non-resident property owner do now?

Three steps make the difference between a manageable bill and a costly surprise. First, make a Spanish will (testamento abierto) that names the qualifying Group II heirs; without one, intestate succession can route the property to heirs who fall outside the bonificacion. Second, keep the property’s IBI receipt and a current nota simple from the Land Registry, because the Modelo 650 filing requires both. Third, brief your heirs on the six-month deadline and the representative requirement, so that when the time comes the filing is not late and the extension is not needed.

For owners also navigating annual non-resident holding taxes (Modelo 210, IBI and wealth tax), the ISD picture is the third layer of the Spanish tax stack. The cost of buying covers the acquisition layer, ITP in Andalusia covers the transfer tax, and non-resident CGT covers the exit. Inheritance tax is the fourth and final one, and for most family heirs in Andalucia it is the smallest of the four. The non-resident inheritance process is the companion guide that covers the practical steps around this tax.

This guide is general information, not legal or tax advice. Rules change and individual circumstances differ. Verify current requirements with an independent lawyer (abogado) or tax advisor (gestor/asesor fiscal) before acting.