Inheritance and Gift Tax (ISD) is a tax devolved to the autonomous communities, which means each one regulates it differently. The difference between inheriting in one community or another can amount to tens of thousands of euros. In the Valencian Community, the rules in force are especially favourable for direct heirs, but only if applied correctly.
In this article
The short answer
In the Valencia region, if children, a spouse or parents inherit, Inheritance Tax carries a 99% relief on the tax due, so in most family inheritances very little or nothing is paid. But it must always be filed, within six months of the death, and everything must be declared properly: the relief only applies to what is fully declared before the tax office asks. Siblings and nephews pay quite a lot more, although since June 2026 they get a reduction.
How much is paid depending on who inherits
| Group | Who | What applies in Valencia |
|---|---|---|
| I | Children and descendants under 21 | €100,000 allowance plus €8,000 per year short of 21 (up to €156,000) and 99% relief |
| II | Children and descendants aged 21 or over, spouse, parents and ascendants | €100,000 allowance and 99% relief |
| III | Siblings, nephews, nieces, uncles, aunts and in-laws | 25% relief for blood siblings, nephews, nieces, uncles and aunts if the death is on or after 1 June 2026, and 50% from 1 June 2027. In-laws, no relief |
| IV | Cousins and unrelated people | No relief |
The rates run from 7.65% to 34% depending on what each heir receives, applied to the base left after allowances.
The allowances
| Allowance | Amount | Requirements |
|---|---|---|
| Family (group II) | €100,000 per heir | Child aged 21 or over, spouse, father or mother |
| Family (group I) | €100,000 + €8,000 per year under 21, up to €156,000 | Heir's age |
| Disability (33% to under 65%) | €120,000 | Disability certificate |
| Disability (65% or more, or intellectual or mental from 33%) | €240,000 | Disability certificate |
| The deceased's main home | 95% of its value, up to €150,000 per heir | For spouse, children or parents (or a collateral relative over 65 who lived there two years) and kept for five years |
| Family business | Up to 99% of the value | Conditions on activity, shareholding and keeping it |
What is declared and at what value
- Properties: at their cadastral reference value, or at the declared value if higher. Market value only counts if there is no reference value. See the reference value in an inheritance.
- Accounts, investments and vehicles at their value on the date of death.
- Household contents: presumed by law at 3% of the estate, unless a lower value is proved.
- Deducted: proven debts (an outstanding mortgage, that year's IBI) and the costs of last illness, burial and funeral, in proportion to the estate.
A worked example
With example figures: a widowed mother leaves her two children, both over 21, a flat in Valencia that was her main home, with a reference value of €200,000, and €40,000 in an account. The funeral cost €4,000.
- Each child gets €100,000 of the flat, €20,000 from the account and €3,600 of household contents, less €2,000 of funeral costs: a €121,600 base.
- Deduct €100,000 for family and €95,000 for the main home. The taxable base is nil: each child pays €0, although the return must be filed.
- Had the flat not been her main home, each child would have a taxable base of €21,600, tax of €1,818.53 and, with the 99% relief, would pay €18.19.
Then add the notary, Land Registry and local capital gains tax: see the costs of an inheritance in Valencia.
Deadline and what happens if you miss it
The deadline is six months from the death. A six-month extension can be requested within the first five months, with late-payment interest. If you file late but before the tax office asks, there is a surcharge of 1% plus another 1% per full month late; after twelve months, 15% plus interest. And if the tax office's request comes first, the 99% relief can be lost. See I have missed the Inheritance Tax deadline.
In a family inheritance in Valencia the tax is usually small. What costs money is filing it late or wrongly.
Where and how it is filed
- If the deceased lived in the Valencia region and the heirs live in Spain, with the Valencian Tax Agency.
- If the heir or the deceased was not resident in Spain, with the national Tax Agency, but applying the Valencian allowances and relief where they apply: see non-resident inheritances.
- Each heir pays on their own share, not the estate as a whole. If there is no cash, the bank can pay the tax from the deceased's accounts.
The order of steps
- Death certificate and certificate of last wills.
- Inventory and valuation of assets and debts.
- Deed of acceptance and division before a notary.
- Inheritance Tax, on time.
- Local capital gains tax at each town hall where there is property.
- Land Registry entry and transfer of accounts, vehicles and bills.
Well coordinated, a simple inheritance is settled in three to six months. At Equus Capital a registered lawyer handles it from start to finish, and the first consultation is free: inheritance services in Valencia.
Frequently asked questions
How much Inheritance Tax is paid in the Valencia region?
Between children, spouse and parents, very little: there is a €100,000 allowance and a 99% relief on the tax. In a typical family inheritance, between nothing and a few dozen euros per heir. Siblings and nephews pay more, with a 25% relief from June 2026 and 50% from June 2027.
Must the tax be filed even if it comes to zero?
Yes. It must always be filed within six months of the death, and the relief only applies to what is fully declared before the tax office asks.
What is the deadline for Inheritance Tax?
Six months from the death, extendable by six more if requested within the first five, with late-payment interest.
What happens if I file late?
If you file before the tax office asks, a 1% surcharge plus 1% per full month; after twelve months, 15% plus interest. If the request comes first, you may lose the relief.
How is a flat valued in the inheritance?
At its cadastral reference value, or the declared value if higher. Market value only counts if there is no reference value.
What are household contents?
Personal and household goods. The law presumes them at 3% of the estate unless a lower value is proved.
Where do I file if I live outside Spain?
With the national Tax Agency, applying the Valencian rules when the deceased lived in the Valencia region or had most of their Spanish assets here.
Who pays the tax?
Each heir on what they receive. If there is no cash, the bank can pay it from the deceased's accounts.