How is inheritance tax calculated in Spain?

The Impuesto sobre Sucesiones y Donaciones (ISD) is charged per heir. First a tax-free reduction is applied based on kinship group, then the remaining taxable base is run through a progressive scale from 7.65% to 34%. The result is multiplied by a coefficient that depends on the heir's relationship and pre-existing wealth, and finally any regional bonificación is deducted.

What are the kinship groups?

Group I is descendants under 21 (largest reductions), Group II is descendants 21 or over, spouses and ascendants, Group III is siblings, nephews, nieces and in-laws, and Group IV is cousins and unrelated heirs (no reduction and the highest multiplier). Closer relatives pay much less than distant ones.

Why does the region matter so much?

ISD is ceded to Spain's autonomous communities, which set their own reductions and rebates. Madrid, Andalucía and several others apply a bonificación of around 99% for Groups I and II, so close family there pay almost nothing, while other regions tax more heavily. Set the bonificación slider to match the deceased's region.

What is the multiplier coefficient?

After the scale produces a base tax, it is multiplied by a coefficient that rises with the heir's pre-existing wealth and falls with closeness of kinship. Groups I and II start near 1.0, Group III around 1.59 and Group IV at 2.0. This calculator uses the base-wealth coefficients; very wealthy heirs face higher ones.

Is this an exact tax bill?

No, it is an estimate using the state ISD rules plus a rebate slider. Each autonomous community has its own reductions, rates and conditions, and there are extra reliefs for the main home, family businesses and disability. Confirm with a Spanish notary or asesor fiscal.

Spain Inheritance Tax Calculator

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This Spain inheritance tax calculator estimates the Impuesto sobre Sucesiones y Donaciones (ISD) owed by an heir on a bequest. Spain’s ISD is unusual: the bill depends heavily on kinship, the size of the inheritance and — crucially — the autonomous community, where rebates of around 99% for close family are common. The tool models the state rules and lets you apply your region’s bonificación.

How it works

The calculation runs in four steps, per heir:

Reduction by kinship group. Group I (descendants under 21) and Group II (descendants 21+, spouse, ascendants) get EUR 15,956.87 (more for young children), Group III (siblings, nephews, in-laws) gets EUR 7,993.46, and Group IV (cousins, unrelated) gets nothing.
Progressive scale. The taxable base after the reduction is taxed in bands from 7.65% up to 34%.
Multiplier coefficient. The scale tax is multiplied by a coefficient: about 1.0 for Groups I/II, 1.5882 for Group III and 2.0 for Group IV.
Regional bonificación. Finally the tool subtracts your region’s rebate. Set it to roughly 99% for Madrid-style regions and close family.

Example

A child (Group II) inheriting EUR 300,000 gets the EUR 15,956.87 reduction, leaving about EUR 284,000 taxed on the scale at a ~1.0 multiplier — a meaningful bill under the state rules. But in a region with a 99% bonificación the same child pays almost nothing, which is why the regional slider matters more than any other input.

Notes

Estimate using the state ISD rules. Spain’s autonomous communities vary enormously — Madrid, Andalucía and others apply a ~99% bonificación for close family, so set the rebate to match the deceased’s region. Reliefs for the main home, family businesses and disability, and higher wealth coefficients, are not modelled. Confirm with a Spanish notary or accountant.