Cost of an International Inheritance in Madrid: Complete Guide for Non-Residents
Madrid is not only Spain’s capital but also one of the most advantageous regions for inheriting property thanks to its generous tax reliefs. Thousands of international families own apartments, houses, and investment properties in the city. When the owner passes away, the heirs must deal with Spanish inheritance law, the notarial procedure, the registration of the property, and the payment of taxes such as plusvalía municipal and Inheritance Tax. For non-resident heirs, this process can be daunting. They may be unfamiliar with Spanish procedures, struggle with language barriers, and miss strict deadlines. That is why hiring an international tax lawyer in Madrid or an inheritance tax lawyer in Madrid is crucial. With expert guidance, heirs benefit from Madrid’s 99% inheritance tax relief, avoid penalties, and secure the legal transfer of ownership.
Jacob Salama
9/10/20253 min read
Non-Resident Tax in Madrid: Key Connection Factors
The first step in understanding non-resident tax in Madrid is determining the factors of connection. Spanish succession law applies based on:
Location of the property: Real estate located in Madrid is always taxable in Spain.
Residence of the deceased: If the deceased was resident in Spain, the worldwide estate is taxable; if non-resident, only Spanish assets are taxable.
Residence of the heir: Since 2015, EU and EEA heirs must benefit from the same reliefs as residents. Case law has extended this to non-EU heirs as well, so heirs from the UK, USA, Canada and other countries can also benefit from Madrid’s 99% allowance.
An international tax lawyer in Madrid will confirm which rules apply and ensure non-resident heirs are treated equally.
Municipal Plusvalía Tax in Madrid
The plusvalía municipal is levied by the Madrid City Council. It taxes the increase in the cadastral land value during the time the deceased owned the property.
The calculation depends on:
The cadastral land value of the plot.
The number of years of ownership.
The coefficient and tax rate approved by Madrid City Council (rates vary by district but usually fall between 20% and 30%).
Example: A Madrid apartment has a land cadastral value of €80,000, owned for 15 years. With a coefficient of 0.12, the base is €9,600. At a 28% rate, the tax is €2,688.
An inheritance tax lawyer in Madrid will check if plusvalía is correctly calculated and, if there was no real increase in value, can challenge it.
Inheritance Tax in Madrid for Non-Residents
The national inheritance tax tariff ranges from 7.65% to 34%, but Madrid applies a 99% relief for close relatives.
Direct Heirs (Children, Parents, Spouses)
They pay the tax according to the state tariff, but then apply a 99% regional allowance. This means their effective tax burden is almost zero.
Distant Relatives or Unrelated Heirs
Siblings, nephews, cousins, or friends do not qualify for the 99% reduction. They pay according to the national tariff, which can be substantial.
Simulations of Inheritance Tax in Madrid for Non-Residents
Simulation A: Non-Resident Child Inheriting €600,000 Apartment in Madrid
Taxable base: €600,000.
State tariff: around €100,000.
Madrid 99% allowance: final tax ≈ €1,000 only.
Simulation B: Non-Resident Spouse Inheriting €1,500,000 Villa in Madrid
Taxable base: €1,500,000.
State tariff: approx. €250,000.
Madrid 99% allowance: final tax ≈ €2,500 only.
Simulation C: Non-Resident Nephew Inheriting €500,000 Flat in Madrid
Taxable base: €500,000.
No 99% reduction (Group III heir).
Tax bill: approx. €80,000.
This shows that direct heirs (children, spouses, parents) in Madrid pay almost nothing, but distant relatives can face high costs. Consulting an inheritance tax lawyer in Madrid ensures the right reductions are applied.
Deadlines for Non-Resident Tax in Madrid
Inheritance Tax must be declared within six months from the date of death. An extension of another six months can be requested, but only if filed within the first five months. Plusvalía municipal also follows this six-month deadline.
For non-residents, it is easy to miss these deadlines. Working with an international tax lawyer in Madrid guarantees that taxes are paid on time and penalties are avoided.
Other Costs When Inheriting in Madrid
In addition to taxes, heirs must consider:
Notarial deed of acceptance of inheritance: around €600–€1,200.
Land Registry inscription: around €400–€800.
Translations and apostilles: €500–€1,000 depending on the case.
An inheritance tax lawyer in Madrid provides heirs with a complete breakdown of expected costs.
Why Work with an International Tax Lawyer in Madrid
For non-residents, inheriting property in Madrid is legally complex. The heir must deal with:
Apostille and sworn translations of foreign documents.
Forced heirship rules under Spanish law versus chosen foreign law.
Tax calculations and applications of the Madrid regional allowance.
Communication with notaries, registries, and the tax office.
An international tax lawyer in Madrid ensures all steps are followed: verifying the will, calculating tax, registering the property, and protecting the heir from unnecessary costs.
Contact an International Inheritance Tax Lawyer in Madrid Today
If you are inheriting real estate in Madrid as a non-resident, take immediate action. Spanish deadlines are strict, and penalties are severe. By working with an international tax lawyer in Madrid or an inheritance tax lawyer in Madrid, you will secure your rights, minimize non-resident tax in Madrid, and benefit from the region’s generous 99% tax reduction.
Whether you inherit a luxury apartment in Salamanca district, a villa in La Moraleja, or a family flat in Chamberí, legal expertise is the difference between a smooth process and costly mistakes. Contact a qualified inheritance tax lawyer in Madrid today and protect your inheritance.