We all know the two great certainties in life: death and taxes. But in Spain, these two collide in a way that could drastically affect your choice of residence. Believe it or not, the cost of dying varies enormously depending on where you are in Spain. It’s no urban legend: around 1,195 people die every day in Spain, according to recent data from Datosmacro.com. However, what many only realize too late – or when a loved one has to foot the bill – is that inheritance tax makes the cost of death differ significantly from region to region.
The Most Expensive Regions for Heirs in Spain
So, where in Spain should you definitely not die if you want your loved ones to inherit more than just memories? According to legal expert Xavi Abat, also known as @elabogadodetitktok, some autonomous communities top the list for the highest inheritance costs:
- Asturias
- Castile and Leon
- Aragon
- Valencia
- Catalonia
In a recent viral video, Abat jokes: “Don’t even think about dying here in Spain – especially not in one of these five regions. If you do, not only will you be gone, but your descendants will be left penniless.”
The figures emphatically support his statement. In Catalonia, for example, inheritance taxes soared dramatically during the pandemic. Before the changes, inheriting €200,000 might have only cost €180 in taxes. Now? The bill has climbed to a staggering €3,825. It gets even more drastic with larger sums. Suppose you are fortunate enough to inherit €1 million from a parent in Catalonia. Three years ago, your tax bill would have been around €30,000. Today, the same inheritance could cost you over €100,000.
The Best Regions to Inherit in Spain and Important Requirements
However, it’s not all doom and gloom. There are still places in Spain where dying – financially, at least – is much friendlier to heirs. The most inheritance-friendly regions are:
- Madrid
- Andalusia
- Cantabria
For instance, if you are a resident of Madrid, you receive a hefty 99% tax rebate for transfers from parents to children. In plain language: you pay virtually no inheritance tax. Similar rules apply in Andalusia and Cantabria, where local governments have drastically reduced these levies in recent years.
But be careful: Spanish tax law is very clear on one point: your residence counts, not just your location at the time of death. To qualify for inheritance tax as a resident, you must have lived in the region for more than half of the last five years. So, if you plan to move to Madrid in your golden years to avoid Catalonia’s sky-high inheritance taxes, you should plan well in advance. Without at least two and a half years of residency, you will still have to pay the Catalan rates.
It may sound morbid, but knowing where in Spain it is cheapest to die can save your family thousands – sometimes hundreds of thousands – of euros. With some regions increasing inheritance taxes sevenfold in just a few years, it pays to check the fine print, especially if you want your loved ones to benefit from your inheritance. So, the next time you joke about retiring to the sun-drenched coasts of Spain, don’t forget to consider the local inheritance taxes. After all, in Spain, where you spend your final years could mean more than you think.
