What are inheritance tax rates in Galicia?

Galicia applies ISD at rates that start at 7.65% and rise progressively. Galicia offers some reductions for direct descendants and spouses but these are generally less generous than Madrid, Basque Country or Andalusia. The effective burden in Galicia is moderate compared to other Spanish regions. Consult a Galician tax adviser or gestoría for current exact rates and conditions.

Does Galicia have special ISD exemptions?

Galicia offers reductions for: direct descendants (Group II) with age-related variations, the principal family residence in certain circumstances, and business and agricultural assets. However, Galicia does not offer the near-zero rates available in Madrid or Andalusia for direct descendants. The reductions are meaningful but result in a moderate effective rate for many estates.

How does life insurance interact with Galicia ISD?

Life insurance proceeds are included in the ISD base in Galicia. Direct beneficiary nomination in the policy provides the most favourable treatment. For direct descendants, the available reductions will reduce the ISD liability but are unlikely to eliminate it entirely for significant life insurance amounts. Specialist tax advice is recommended for inheritance planning in Galicia.

Is Galicia more expensive for inheritance tax than other regions?

Galicia falls in the middle ground — less generous than Madrid, Basque Country and Andalusia for direct descendants, but generally more manageable than Catalonia. The exact comparison depends on the specific inheritance amounts, family structure and beneficiary residency. A tax specialist can model the exact figures for your situation.

Can non-residents inherit in Galicia at regional rates?

Non-residents inheriting assets in Galicia are subject to the national ISD scale rather than Galicia's regional rates and deductions. This can result in higher effective rates. If you are a non-resident beneficiary, specialist advice on the applicable rules and any available relief is essential.

Inheritance Tax in Galicia 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.

Galicia ISD — 99% Bonification for Direct Family Since 2022

Galicia significantly reformed its inheritance tax in 2022, introducing a 99% bonification on ISD 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 — placing Galicia alongside Madrid, Andalusia and Murcia as one of Spain's most favourable regions for direct-family inheritance. A personal reduction of €1,000,000 per heir was also introduced for Groups I and II under Galicia's 2022 reform.

ISD Groups in Galicia

Group I (direct descendants under 21): Personal reduction of €1,000,000 per heir plus €100,000 for each year under 21. 99% bonification on any resulting liability. Effective rate: negligible.
Group II (direct descendants 21+, spouse, ascendants): Personal reduction of €1,000,000 per heir. 99% bonification on any resulting liability. Effective rate: approximately 1% of the standard scale.
Group III (siblings, nieces/nephews, in-laws): Standard rates apply. The 99% bonification does not extend to this group. Personal reduction of €7,993.46.
Group IV (unrelated persons): Standard national rates. No Galician-specific relief.

Key Reductions Available in Galicia

€1,000,000 personal reduction per heir for Groups I and II (2022 reform)
99% bonification on ISD liability for Groups I and II
Age-related additional reduction for Group I (€100,000/year under 21)
95% reduction on habitual dwelling (up to €600,000) for direct family who maintain the property for at least 5 years
95% reduction on individual business, professional activity or qualifying company shares, subject to 5-year maintenance
99% reduction on agricultural and farming businesses of special family importance (Empresa Familiar Agraria)

Donations (gifts during lifetime)

Galicia applies a 99% bonification to donations made to Group I and Group II beneficiaries, consistent with the inheritance treatment. Donations must be formalised in a notarised escritura pública and declared on Modelo 651 within 30 working days. A key Galician provision: donations of cash to direct descendants for the purchase of a habitual dwelling can access an enhanced reduction.

Filing Requirements

Inheritance returns are filed on Modelo 650 with the Xunta de Galicia's tax office (Axencia Tributaria de Galicia — ATRIGA) within six months of the date of death. A six-month extension may be requested. The 99% bonification and €1,000,000 reduction only apply if the return is filed correctly and on time — failure to file triggers penalties and forfeits the bonification.

Life Insurance and Galicia ISD

Life insurance proceeds form part of the ISD base in Galicia. With the €1,000,000 personal reduction and 99% bonification for Groups I and II, most life insurance payouts to direct descendants or spouses attract negligible ISD. Name beneficiaries directly in the policy rather than through a will to ensure the most favourable treatment. For non-family beneficiaries (Group III/IV) standard rates apply and specialist advice is essential.

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Frequently Asked Questions — Inheritance Tax in Galicia Spain

Following Galicia's 2022 reform, a 99% bonification applies for Group I and Group II beneficiaries — making the effective ISD rate approximately 1% of the standard state scale for direct descendants and spouses. A personal reduction of €1,000,000 per heir is also available, meaning most family estates in Galicia now attract negligible inheritance tax. Always verify current figures with a local gestoría or tax adviser as the 2022 rules continue to bed in.

Galicia's Xunta approved the 99% bonification for Groups I and II as part of its 2022 ISD reform, alongside the €1,000,000 personal reduction per heir. This represented a major improvement in Galicia's ISD treatment, bringing it broadly in line with Madrid, Andalusia and Murcia. Prior to 2022, Galicia's ISD was significantly more expensive for direct descendants, with rates starting at 7.65% and limited reductions.

Yes — Modelo 650 must be filed with ATRIGA (Axencia Tributaria de Galicia) within six months of the date of death. Extensions are available. Filing is mandatory regardless of how low the effective tax is. The 99% bonification and €1,000,000 reduction are conditional on a correct and timely return — failure to file triggers penalties and creates problems with property registration and bank account releases.

Yes — Galicia applies a 99% bonification to donations for Groups I and II, making lifetime gifts to children, grandchildren and spouses broadly tax-free. Donations must be formalised in a notarised escritura pública and filed on Modelo 651 within 30 working days. Galicia also has a specific provision for cash donations to direct descendants for the purchase of a habitual dwelling, which can access an enhanced treatment in certain circumstances.

Life insurance proceeds are included in the ISD base in Galicia. With the €1,000,000 personal reduction and 99% bonification for Groups I and II, most life insurance payouts to direct family result in negligible ISD. Naming beneficiaries directly in the policy (not through a will) is best practice. For Group III and IV beneficiaries, standard national rates apply — specialist advice is recommended in those cases.

Yes — Galicia provides a 95% reduction on the value of the habitual dwelling (up to €600,000) when inherited by a spouse, descendant or ascendant. The beneficiary must maintain ownership for at least 5 years. Combined with the 99% bonification on any remaining liability, the family home is effectively tax-free in Galicia for most direct-family inheritances within the €600,000 threshold.

EU and EEA non-resident beneficiaries can elect to apply Galicia's regional rules (including the 99% bonification) following EU case law. For UK nationals (post-Brexit non-EU), the position depends on specific circumstances. Given Galicia's very generous post-2022 rules, applying the regional scale is typically more favourable for qualifying beneficiaries. Specialist advice from a tax adviser experienced in cross-border Spanish inheritance is essential.

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