Cost of International Inheritance in Valencia: Complete Guide for Non-Residents
Valencia, located in the Comunidad Valenciana, is one of the most popular destinations in Spain for international property owners. The Costa Blanca attracts thousands of foreign residents and holiday home investors each year, particularly from the United Kingdom, Germany, the Netherlands, Scandinavia, Canada, and the United States. Apartments in Valencia city, villas in Jávea, Moraira, Altea, or Calpe, and holiday homes in Torrevieja or Orihuela Costa are common examples of properties owned by non-residents.
Jacob Salama
9/24/20254 min read
When the owner of a Spanish property passes away, the heirs face the complex Spanish succession system. Unlike Madrid or Andalucía, where inheritance tax is very low thanks to generous reductions, the Comunidad Valenciana applies a stricter inheritance tax regime. That means heirs—especially non-residents—often face substantial tax bills unless they plan carefully.
This is where the role of an international tax lawyer in Valencia becomes indispensable. They guide heirs through the legal, fiscal, and procedural labyrinth of Spanish inheritance law, helping them manage non-resident tax in Valencia, calculate plusvalía municipal, claim available reductions, and complete all formalities before notaries and the Land Registry.
Non-Resident Tax in Valencia: Connection Factors and Applicable Law
The first step in handling an inheritance in Valencia is to determine the connection factors that decide how the estate is taxed.
Location of the property: If the real estate is in Valencia or anywhere in the Comunidad Valenciana, it is always subject to Spanish succession law and Spanish inheritance tax.
Residence of the deceased: If the deceased was resident in Spain, their worldwide assets are taxed. If the deceased was a non-resident, only Spanish assets are taxed.
Residence of the heirs: EU and EEA heirs must be treated the same as Spanish residents thanks to European law. For heirs outside the EU, recent Spanish Supreme Court rulings have extended similar treatment, but the procedure is more complex.
An international tax lawyer in Valencia will analyze these factors to ensure heirs benefit from regional reductions available in the Comunidad Valenciana.
Municipal Plusvalía Tax in Valencia
The plusvalía municipal (Impuesto sobre el Incremento del Valor de los Terrenos de Naturaleza Urbana) is the local tax charged by the Ayuntamiento de Valencia and other municipalities (Torrevieja, Benidorm, Jávea, Denia, etc.) when a property changes hands due to inheritance.
The calculation depends on:
The cadastral value of the land (not the building).
The number of years the deceased owned the property.
The coefficients and tax rates approved by the local council.
For example, if a villa in Altea has a land cadastral value of €100,000 and was owned for 15 years, the taxable base may be calculated at €15,000. If Valencia City Council applies a rate of 25%, the plusvalía would be around €3,750.
An inheritance tax lawyer in Valencia will verify both calculation methods (objective and real) and challenge the tax if there has been no actual increase in land value, which Spanish Constitutional Court rulings now allow.
Inheritance Tax in Valencia and the Comunidad Valenciana
The most important tax for heirs is the Impuesto de Sucesiones y Donaciones (ISD), regulated nationally but with regional rules in the Comunidad Valenciana.
Tariff
The national progressive inheritance tax tariff applies, ranging from 7.65% to 34%, depending on the value of the inheritance.
Reductions in the Comunidad Valenciana
Unlike Madrid or Andalucía, the Comunidad Valenciana does not exempt direct heirs completely. However, it does apply significant reductions:
Children under 21: €100,000 allowance.
Children over 21, spouses, parents: €100,000 allowance.
Disabled heirs: additional allowance.
No major allowances for distant relatives or non-relatives.
Multipliers
After calculating the tax, multipliers apply depending on the heir’s relationship to the deceased and their pre-existing wealth. This often increases the final bill.
Simulations of Inheritance Tax in Valencia for Non-Residents
Simulation A: Non-Resident Child Inheriting €400,000 Apartment in Valencia City
Allowance: €100,000.
Taxable base: €300,000.
Effective tax rate: around 10%.
Final tax bill: approx. €30,000.
Simulation B: Non-Resident Spouse Inheriting €800,000 Villa in Jávea
Allowance: €100,000.
Taxable base: €700,000.
Effective rate: around 15%.
Final tax bill: approx. €105,000.
Simulation C: Non-Resident Nephew Inheriting €500,000 Holiday Home in Torrevieja
Allowance: around €8,000.
Taxable base: €492,000.
Effective rate: 20%.
Final tax bill: approx. €100,000.
These simulations show that heirs in Valencia face much higher tax burdens than in Madrid or Andalucía. An inheritance tax lawyer in Valencia is essential to minimize these costs, request extensions, and plan strategies.
Deadlines for Non-Resident Tax in Valencia
The deadline to declare inheritance tax in Valencia is six months from the date of death. A six-month extension can be requested, but only if filed within the first five months. Plusvalía municipal must also be declared in the same period.
Missing these deadlines results in penalties and late payment interest. For non-residents living abroad, the risk of delay is high. An international tax lawyer in Valencia ensures all documents, translations, and filings are completed on time.
Other Costs in Inheriting Property in Valencia
Notarial deed of acceptance of inheritance: €600–€1,200.
Land Registry inscription: €400–€800.
Translations, apostilles, and certificates: €500–€1,000.
Legal fees: vary depending on complexity.
An inheritance tax lawyer in Valencia provides a full budget so heirs know the total cost in advance.
Common Problems in Non-Resident Inheritances in Valencia
Non-residents often face complications such as:
Lack of a Spanish will, requiring probate documents from abroad.
Apostille and sworn translations of foreign documents.
Language barriers with notaries and registries.
Confusion about forced heirship rules under Spanish law.
Misunderstanding of double taxation treaties between Spain and the heir’s country of residence.
An international tax lawyer in Valencia solves these problems, representing heirs before Spanish authorities, preparing deeds, and ensuring compliance.
Comparative Perspective: Valencia vs. Madrid vs. Andalucía
It is important to highlight that heirs in Valencia face significantly higher tax costs than those in Madrid or Andalucía. For example:
In Madrid, a child inheriting €500,000 pays almost nothing thanks to the 99% allowance.
In Andalucía (Marbella), a spouse inheriting €800,000 also pays nothing.
In Valencia, the same heir may pay €80,000 or more.
This contrast makes estate planning especially important in Valencia. Consulting an inheritance tax lawyer in Valencia is the best way to avoid unpleasant surprises.
Why You Should Hire an International Tax Lawyer in Valencia
Inheriting property in Valencia is legally and fiscally complex. Non-residents must navigate Spanish law, local tax rules, and strict deadlines. An international tax lawyer in Valencia:
Confirms applicable law and reductions.
Calculates inheritance tax and plusvalía municipal.
Prepares all documentation and translations.
Represents heirs under power of attorney, avoiding unnecessary travel.
Ensures compliance with deadlines to avoid penalties.
Speak with an Inheritance Tax Lawyer in Valencia Today
If you are a non-resident heir inheriting real estate in Valencia, you are likely facing one of the highest inheritance tax burdens in Spain. Do not wait until it is too late. Contact an inheritance tax lawyer in Valencia or an international tax lawyer in Valencia immediately.
They will help you minimize non-resident tax in Valencia, apply for available reductions, challenge unfair tax assessments, and complete the entire process before notaries, registries, and the tax office.
Whether you are inheriting a beachfront apartment in Valencia city, a villa in the Costa Blanca, or a holiday home in Torrevieja, professional legal support is essential. Protect your inheritance and your family’s interests: contact a qualified inheritance tax lawyer in Valencia today.