Spain once again comes out at the top of a ranking, but arguably for all the wrong reasons. This time, Spain is in the spotlight for having the highest maximum inheritance tax rate in the world, reaching 81.6%, according to data from EY and the General Council of Economists, as reported by the newspaper Expansión. It is closely followed by Belgium, with a maximum rate of 80%, France, with 60%, Denmark, with 52%, and Germany, with 50%. We have all the details about inheritance tax Spain 2022, which applies to both residents and non-residents.
Inheriting a house in Spain, for example, can be costly. It's important to note that inheritance tax in Spain applies to everyone, and this includes both residents and non-residents. In Spain, it is also often known as succession tax (impuesto de sucesiones y donaciones or ISD), and becomes payable if you receive an inheritance from a friend or relative (this could include property, money, or assets of any kind).
Inheriting in Spain can be very expensive, especially for distant relatives and for taxpayers in Asturias, Valencia and Aragon, where the tax burden is highest, especially in the highest bracket, from 800,000 euros. Although the general maximum rate is 34% for inheritances exceeding 797,555.08 euros, in Spain there are certain additional coefficients that increase taxation depending on the relationship between the transferor and the heir. According to EY data, the maximum rate can go from 34% to 2.4 times this value, which places it at 81.6%.