Inheritance Tax in Castilla y León Spain

Castilla y León ISD — 99% Bonification for Direct Family

Castilla y León applies a 99% bonification on ISD for Group I and Group II beneficiaries, bringing the effective rate to approximately 1% of the standard state scale — placing Castilla y León alongside Madrid, Andalusia, Valencia, Galicia and Murcia as one of Spain's most favourable regions for direct-family inheritance.

ISD Groups in Castilla y León

• Group I (direct descendants under 21): 99% bonification — effective rate: negligible.
• Group II (direct descendants 21+, spouse, ascendants): 99% bonification — effective rate: approximately 1%.
• Group III (siblings, relatives): Standard rates. No blanket bonification.
• Group IV (unrelated persons): Standard national rates. No specific relief.

Key Reductions Available in Castilla y León

• Personal reduction of €15,956.87 per heir (Groups I and II)
• 99% bonification on ISD liability for Groups I and II
• Age-related reduction for Group I (€3,990.72/year under 21)
• 95% reduction on habitual dwelling for spouse and direct descendants
• 95% reduction on qualifying business assets and company shares

Filing Requirements

Modelo 650 with the Consejería de Hacienda de Castilla y León 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 Castilla y León ISD

Life insurance proceeds form part of the ISD base in Castilla y León. With the 99% bonification for Groups I and II, the effective tax on family life-insurance payouts is approximately 1%. Name beneficiaries directly in the policy rather than through a will for the most favourable treatment.