As a Swedish, Norwegian or Danish property owner in Spain, many people are surprised to discover that inheritance tax still exists here — unlike in Sweden, Norway and Denmark, where it was abolished long ago. This article explains what applies to heirs of a property in the Valencian Community in 2026, and how you can plan ahead to avoid unpleasant surprises.
Why does Spanish inheritance tax matter for Nordic families?
When a property in Spain is inherited, the heirs must declare the inheritance in Spain — regardless of whether they live in the country or not. The tax is called Impuesto sobre Sucesiones y Donaciones (ISD) and is governed both by national law (Ley 29/1987) and by regional regulations. In the Valencian Community, where the Costa Blanca is located, the special regional rules of Ley 13/1997 apply, which are often considerably more favourable than the national framework.
The 2023 reform and its consequences
Since the 2023 reform in the Valencian Community, a 99 % bonificación applies to direct heirs in groups I and II — that is, children, spouses, parents and grandchildren. This means a 99 % reduction of the tax due. In practice, a spouse or child who inherits a property in Alfaz del Pi, Albir, Altea or Calpe will often pay only between 1 and 3 percent of what the inheritance would have cost before the reform.
It is important to understand that this reduction is not automatic: the inheritance must be declared within six months of the date of death. Resident heirs use Modelo 650; non-resident heirs of a property in the Valencian Community use Modelo 652.
A concrete example
Consider a typical case: a Swedish husband owns a property in Albir worth 350,000 €. He passes away and his wife inherits the property. Before the reform, the tax could have been between 25,000 and 35,000 €. After the reform, with the 99 % bonificación, the actual tax payable falls to roughly 250 to 350 €. The difference is dramatic — but it only materialises if everything is declared correctly and on time.
What if the heirs are not Spanish residents?
The 2014 ruling of the Court of Justice of the European Union (case C-127/12) established that Spain may not discriminate against heirs resident in other EU countries. Since then, a Swedish or Danish heir living in their home country can apply the regional rules of the Valencian Community (and therefore the bonificación) on the same basis as an heir resident in Spain. Following Tribunal Supremo rulings in 2018, this also applies to heirs from countries outside the EU/EEA; Norway is included via the EEA agreement, and the United Kingdom after Brexit through specific case law.
The six-month deadline — the most common pitfall
The greatest risk we see in our practice is that families miss the six-month declaration deadline. It is possible to request a six-month extension, but the request must be filed within the first five months. Late declarations lead to penalties and may, in certain cases, result in the loss of the right to apply the bonificación.
Practical steps to take now
To avoid problems, we recommend you check how the property is registered in the Registro de la Propiedad and who appears as owner; prepare a Spanish will specifically for your Spanish assets — this enormously simplifies matters for your heirs; verify your heirs’ NIE numbers well in advance; and consult a lawyer if you have dual wills (a Nordic one and a Spanish one) to ensure they are compatible and do not overlap in ways that create conflict.
Estimate your potential inheritance tax
You can run a preliminary calculation of inheritance tax using our free simulator: Spanish inheritance tax calculator.
Contact us
We have more than 18 years of experience helping Nordic families with inheritance matters in Spain. Do not hesitate to get in touch:
Email: info@colas-abogados.com
Phone: +34 629 549 430
Web: www.colas-abogados.com