Inheritance Tax in Aragón Spain

Aragón ISD — 65% Bonification for Direct Family

Aragón applies a 65% bonification on ISD for Group I and Group II beneficiaries, reducing the effective rate to approximately 7% of the standard state scale — meaningful but less generous than the near-zero regions such as Madrid, Andalusia and Valencia.

ISD Groups in Aragón

• Group I (direct descendants under 21): 65% bonification — effective rate approximately 7%.
• Group II (direct descendants 21+, spouse, ascendants): 65% bonification — effective rate approximately 7%.
• Group III (siblings, relatives): Standard progressive rates. No blanket bonification.
• Group IV (unrelated persons): Standard national rates. Minimal reductions.

Key Reductions Available in Aragón

• Personal reduction of €15,956.87 per heir (Groups I and II)
• 65% bonification on the resulting ISD liability for Groups I and II
• Age-related reduction for Group I (€3,990.72/year under 21)
• 95% reduction on habitual dwelling (up to €122,606.47) for spouse and direct descendants
• 95% reduction on business assets and company shares

Filing Requirements

Modelo 650 with the Gobierno de Aragón tax authority within six months of the date of death. A formal return must be filed even where the effective tax is near-zero — failure to file triggers penalties and can prevent property title transfers.

Life Insurance and Aragón ISD

Life insurance proceeds form part of the ISD base in Aragón. With the 65% bonification for Groups I and II, the effective tax on family life-insurance payouts is approximately 7%. Name beneficiaries directly in the policy rather than through a will for the most favourable treatment.