When an inheritance involves an heir residing abroad, or assets located in the Valencian Community inherited by someone from outside Spain, Inheritance Tax does not disappear: its rules change. Knowing which authority has jurisdiction, which form is filed and within what deadline is the difference between a clean process and an avoidable penalty.
Who is taxed, and before whom?
The general rule: whoever inherits is taxed in Spain on the assets located here. If the heir does not reside in Spain, jurisdiction usually lies with the national Tax Agency (not the regional one), although the rules of the region where the assets are located or where the deceased resided may apply. That choice of applicable rules is precisely where money is won or lost, because it determines whether the Valencian Community reliefs apply.
Form 650 and the deadline
The tax is settled using form 650. The deadline is 6 months from the date of death, extendable by a further 6 if requested in time. Living abroad does not extend the deadline: it keeps running even if the heir is thousands of kilometres away.
Tax representative in Spain
A non-resident usually needs a tax representative domiciled in Spain before the Tax Agency, and an NIE. Handling this from abroad, with documents apostilled and translated, is one of the most common causes of delay.
Double taxation
If the heir's country of residence also taxes the inheritance, there may be double taxation. International treaties and the double-taxation deduction avoid paying twice, but they must be applied correctly and evidenced.
Gathering foreign certificates, apostilles and sworn translations takes weeks. If you wait until you have everything before starting, the 6-month deadline may expire. The prudent course is to begin at once and, if necessary, request the extension within the first 5 months.
Why a local firm makes the difference
A non-resident inheritance combines the worst of two worlds: Spanish tax complexity and distance. Having someone in Valencia to recover notarial copies, deal with the Tax Agency, verify cadastral values and coordinate with the heir abroad makes it possible to resolve it without anyone having to travel. It is exactly the kind of matter we handle remotely. It also helps to be clear on how long it takes to receive an inheritance and, if there is real estate, how to sell an inherited house in Valencia.
At Equus Capital we handle non-resident inheritances with assets in the Valencian Community from start to finish: form 650, tax representative, double taxation and final registration. First consultation free and without obligation.
Frequently asked questions
Who pays Inheritance Tax if the heir does not reside in Spain?
The heir is taxed in Spain on the assets located here, normally before the national Tax Agency. Regional rules (and their reliefs) may apply depending on where the assets are or where the deceased resided, something worth analysing case by case.
What is the tax representative in a non-resident inheritance?
It is a person domiciled in Spain who represents the non-resident heir before the Tax Agency. It is usually necessary, together with the NIE, in order to settle the tax and carry out the formalities from abroad.
Does the 99% relief apply to non-residents?
It can apply if the case allows the Valencian Community's rules to be relied upon. Following the equal treatment of residents and non-residents of the EU/EEA, and by extension of third countries, choosing the right applicable rules is key to avoid overpaying.
Do you pay the tax twice if you live in another country?
You should not. If your country of residence also taxes the inheritance, double-taxation treaties and the corresponding deduction avoid paying twice, provided they are applied and evidenced correctly.