What are inheritance tax rates in Andalusia?

Andalusia has improved its ISD treatment for direct descendants in recent years, introducing a significant bonification that reduces the effective rate for Groups I and II. As of 2026, Andalusia offers a 99% reduction on ISD for direct descendants and spouses (similar to Madrid), though the rules differ slightly. Consult a current tax adviser for precise rates and conditions.

Does Andalusia now have 0% inheritance tax like Madrid?

Andalusia introduced a 99% bonification for Groups I and II (direct descendants and spouses) making the effective rate close to 0% for close family members in many cases. This represented a major improvement in Andalusia's ISD treatment. The bonification applies when the beneficiary is a resident of Andalusia. Confirm the current position with a tax adviser as regional rules evolve.

How does life insurance interact with Andalusia ISD?

Life insurance proceeds paid to direct descendants or a spouse may benefit from the 99% bonification in Andalusia, making them largely or wholly exempt from ISD for qualifying beneficiaries. As always, direct beneficiary nomination in the policy is essential to access the most favourable treatment.

What about non-residents inheriting in Andalusia?

Non-residents inheriting assets in Andalusia are subject to the national ISD scale rather than Andalusia's regional bonification. This can result in significantly higher effective rates. If you are a non-resident with assets in Andalusia, specialist tax advice is particularly important.

Is Andalusia a good region for inheritance planning?

Following the introduction of the 99% bonification for direct descendants, Andalusia has become a competitive region for inheritance planning — comparable to Madrid for close family. If you are resident in Andalusia, the effective ISD burden for children and spouses is minimal. The key conditions are residency and direct beneficiary nomination for life insurance.

Inheritance Tax in Andalusia Spain

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Important Notice
Turner Insurance does not provide inheritance tax advice or services. This information is provided as a rough guide only for educational purposes, accurate as of 2026. Regional tax rules change — always consult a qualified gestoría, abogado or tax adviser for advice specific to your situation.

Andalusia ISD — 99% Bonification for Direct Family

Andalusia applies a 99% bonification on inheritance tax for Group I and Group II beneficiaries (descendants, ascendants, spouses and registered partners). This brings the effective rate to approximately 1% of the standard state scale — putting Andalusia broadly in line with Madrid as one of Spain's most favourable regions for direct-family inheritance. The bonification applies to both inheritance and donations for Groups I and II.

ISD Groups in Andalusia

Group I (direct descendants under 21): Personal reduction of €15,956.87 plus €3,990.72 for each year under 21 (max €47,858.59). 99% bonification on the resulting liability. Effective rate: negligible for almost all estates.
Group II (direct descendants 21+, spouse, registered partner, ascendants): Personal reduction of €15,956.87 per heir. Spouses also benefit from an additional reduction of up to €1,000,000. 99% bonification on the liability. Effective rate: approximately 1% of the standard scale.
Group III (siblings, nieces/nephews, in-laws): Standard national rates apply. No blanket bonification.
Group IV (unrelated persons and more distant relatives): Standard national rates. No specific Andalusian reduction.

Key Reductions Available in Andalusia

99% bonification on inheritance tax liability for Groups I and II
Personal reduction of €15,956.87 per heir (Groups I and II)
Age-related additional reduction for Group I (€3,990.72/year under 21)
Spouse additional reduction up to €1,000,000
95% reduction on habitual dwelling (up to €122,606.47) when inherited by spouse or direct descendants who maintain the property for at least 3 years
95% reduction on individual business, professional activity or company shares, subject to 10-year maintenance

Donations (gifts during lifetime)

Andalusia extends the 99% bonification to donations (gifts inter vivos) for Groups I and II — making lifetime gifting to children, grandchildren and spouses broadly tax-free in Andalusia. Donations must be formalised in a escritura pública (notarised public deed) and declared on Modelo 651 within 30 working days. The donor must document the source of funds clearly.

Filing Requirements

Inheritance returns are filed on Modelo 650 with the Junta de Andalucía's tax agency (ATSA) within six months of the date of death. A six-month extension can be requested before the deadline expires. The 99% bonification only applies if the return is correctly filed — failure to file forfeits the bonification and can trigger penalties.

Life Insurance and Andalusia ISD

Life insurance proceeds form part of the ISD base in Andalusia. With the 99% bonification for Groups I and II, the effective tax on family life-insurance payouts is approximately 1% of the standard state scale. Name beneficiaries directly in the policy — not through a will or estate — for the most favourable treatment. For non-family beneficiaries (Group III/IV), standard national rates apply and specialist advice is essential.

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Frequently Asked Questions — Inheritance Tax in Andalusia Spain

Andalusia applies a 99% bonification on ISD for Group I and Group II beneficiaries (descendants, spouses and ascendants), making the effective rate approximately 1% of the standard state scale — negligible for most family estates. A personal reduction of €15,956.87 also applies per heir, and spouses can access an additional reduction of up to €1,000,000. Always verify the current position with a local gestoría or tax adviser as rules evolve.

For practical purposes, yes — the 99% bonification for Groups I and II means almost all direct-family inheritances in Andalusia result in a negligible tax bill. It is not technically 0% like Madrid's approach but the outcome is broadly the same for most families. A formal ISD return (Modelo 650) must still be filed within six months of death — the bonification is only available if the return is filed correctly and on time.

Yes — Modelo 650 must be submitted to the Junta de Andalucía (ATSA) within six months of the date of death. Extensions of six months can be requested before the deadline. Filing is mandatory regardless of how low the effective tax is. Failure to file triggers penalties and can create problems with property title registration and bank releases.

Yes — Andalusia extends the 99% bonification to donations for Groups I and II, making lifetime gifts to children, grandchildren and spouses broadly tax-free. The donation must be formalised in a notarised escritura pública and declared on Modelo 651 within 30 working days. The donor must be able to document the source of funds clearly to prevent challenges from the tax authority.

Life insurance proceeds form part of the ISD base in Andalusia. With the 99% bonification for Groups I and II the effective tax on family life-insurance payouts is approximately 1% of the standard state scale amount. Naming beneficiaries directly in the policy (rather than through a will) keeps proceeds out of the general estate and secures the most favourable treatment. For Group III and IV beneficiaries the standard national rates apply — specialist advice is recommended.

EU and EEA non-residents inheriting assets in Andalusia can elect to apply Andalusia's regional rules (including the 99% bonification) following the European Court of Justice ruling. Non-EU non-residents (including UK nationals post-Brexit) may face less favourable treatment depending on their specific circumstances. Specialist advice from a tax adviser experienced in cross-border Spanish inheritance is essential in these cases.

Yes — Andalusia provides a 95% reduction on the value of the habitual dwelling (up to €122,606.47) when inherited by a spouse, ascendant or direct descendant who was living with the deceased. The beneficiary must maintain ownership of the property for at least 3 years after inheritance. This reduction is applied before the 99% bonification, providing substantial overall relief on the family home.

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Other Regions

Inheritance Tax by Region — Across Spain

Inheritance tax (ISD) rules vary by autonomous community. Compare the rules that apply in other regions of Spain:

Aragón Asturias Balearic Islands Basque Country Canary Islands Cantabria Castilla-La Mancha Castilla y León Catalonia Extremadura Galicia La Rioja Madrid Murcia Navarra Valencia Interactive Map Inheritance Tax — All Regions