Inheritance tax in MarbellaThe Spanish region “Andalucía” legislation on inheritance procedures has suffered an interesting change in the application of the autonomic reduction for spouse and direct relatives by inheritance. New legislation on Spanish Inheritance Tax in Andalucía came into force on 1st January 2017.

Thus, an autonomous reduction is established for Andalusia for spouses and direct relatives by inheritance, without prejudice to other reductions that may be applicable and provided they meet the following requirements:


  1. That they are direct relatives of groups I and II, that is descendants and adopted, spouses, ascendants and adopters.


  1. That the value of the inherited assets, for each heir, does not exceed 250,000.00 euros (before the law reform, this taxable base should not exceed 175,000.00 euros).


  1. That the preexisting wealth does not exceed 402,678.11 euros.


  1. The beneficiaries of life insurance policies are included.


The amended law also allows correcting what was considered a “jump error”, in situations where the assets exceeded 175,000.00 euros (for example 180,000.00 euros), the heirs had to settle the tax for the full of the inheritance value, (for 180,000.00 euros and not for the excess of 5,000.00 euros).

After the amendments to the law, if the value of the inheritance assets are between 250,000.00 and 350,000.00 euros, a reduction of 200,000.00 euros would be applied, so that the heirs will only be taxed for the amount that exceeds those 200,000.00 Euros.

For example, if a child inherits from his father an inheritance valued at 295,000.00 euros, this would be settle for the 95,000.00 euros.

This amendment to the law will also apply to cases of acquisition of assets and rights by inheritance, legacy or any other successor title, if the deceased had been resident in a Member State of the European Union, following the Judgment of the Court of Justice of the Union European Union of 3 September 2014, Case C-127/12,


Do not hesitate to contact our law firm in Marbella, to resolve any doubts you have about this matter or any other matter in the matter of succession.