What is the NIE and how do I get one?

The NIE (Foreigner Identity Number) is a tax identifier required for any procedure in Spain. Apply at the police station or Spanish consulate in your country. You need a passport, EX-15 form, photos, and justification of purpose. Processing takes 1-3 weeks.

How much tax does a non-resident property owner pay in Spain?

Non-residents pay IRNR (19% on imputed income), annual IBI (0.4-1.1% of cadastral value), and waste tax. If renting out, declare 19% of net income. Galicia offers 99% reduction on inheritance tax for direct family members.

Do I need Spanish tax residency if I own property?

Not necessarily. Tax residency is determined by presence (over 183 days/year), center of economic interests, or family. As a non-resident, you pay IRNR instead of IRPF. You can own property without being a tax resident.

What taxes apply when inheriting property in Galicia?

Galicia applies a 99% reduction on inheritance tax for groups I and II. The effective rate can be as low as 0.2-1% of value. Municipal capital gains tax also applies. It is advisable to make a Spanish will.

Legal & Tax 25 April 2025 3 min 550

Taxes when inheriting a property in Galicia: guide for foreigners

Inheritance Tax in Galicia: overview

The Inheritance and Gift Tax (ISD) is a tax devolved to autonomous communities. In Galicia, regulations are particularly favorable, with a 99% reduction for Groups I and II (descendants, spouses and ascendants). This makes Galicia one of the most advantageous regions in Spain for receiving a property inheritance.

For foreigners inheriting property in Galicia, the ISD is filed with the Galician Tax Agency (ATG), not the state AEAT, when the deceased had tax residency in Galicia.

Group classification (I-IV)

Group	Relationship	Galicia reduction	Example
Group I	Descendants under 21	99%	18-year-old son
Group II	Descendants over 21, spouses, ascendants	99%	35-year-old daughter, widow
Group III	Siblings, nephews, uncles	50%	Brother of deceased
Group IV	Distant relatives or unrelated	0%	Distant cousin, friend

The 99% reduction means inheriting a €150,000 apartment in Cee from your father would cost approximately €150 in ISD in Galicia. In other regions like Asturias or Cantabria, the bill could exceed €10,000.

Forms: Modelo 650 and 651

Modelo 650: ISD self-assessment, filed with the ATG if the deceased resided in Galicia
Modelo 651: used when documentation is presented at a notary different from the deceased's residence

Required documents:

Death certificate (from the Civil Registry)
Certificate of last will (General Registry of Acts of Last Will, Madrid)
Will or declaration of heirs
Property deed (from the Property Registry)
Updated nota simple from the Property Registry
Last IBI payment receipt
Empadronamiento certificate of the deceased

Deadlines: the crucial 6 months

The deadline for filing ISD is 6 months from the date of death. This can be extended by another 6 months if requested before the first period ends.

Warning: late filing incurs surcharges of 5-20% depending on delay. Always file on time, even with a supplementary declaration.

Property valuation

Method	Description	When to use
Market value	Price achievable in voluntary sale	Primary method
Cadastral value	Cadastral value multiplied by coefficient	Minimum reference
Verified value	Set by administration if discrepancy	If ATG rejects your valuation

Example: a house in Fisterra with cadastral value of €60,000. Galicia's multiplier coefficient is typically 1.2-2.0, so verifiable value would be €72,000-120,000.

Accepting vs renouncing inheritance

Accept outright: you assume all assets and liabilities. Most common when property value exceeds debts.
Accept benefit of inventory: you're only liable with inherited assets, not personal wealth. Recommended if debts are uncertain.
Renounce: you accept nothing. Makes sense if debts exceed property value. Must be done before a notary.

Important for foreigners: renouncing may have tax implications in your country of residence. Consult an international tax advisor.

Non-resident heirs

EU/EEA heir: can apply Galicia's regional regulations (99% reduction) since the 2014 CJEU ruling eliminated residence discrimination
Non-EU heir: state regulations apply without the regional reduction, unless a treaty provides otherwise
Modelo 600: in addition to ISD, wealth increment must be settled if the reduction doesn't apply

Double taxation and international treaties

Country	Treaty	Key aspect
United Kingdom	Double taxation convention on inheritances	Spanish property taxed in Spain
Germany	DBA-Erbschaftsteuer	Tax credit for Spanish tax paid
France	Convention fiscale	Exemption method with progressivity

Post-Brexit, the UK no longer has automatic EU regime application. British heirs should verify their specific situation.

Practical steps and common errors

Month 1: obtain death certificate and last will certificate
Month 1-2: visit a Galician notary to accept the inheritance
Month 2-3: obtain nota simple and value the property
Month 3-4: prepare and file Modelo 650 with the ATG
Month 4-5: pay ISD (if applicable)
Month 5-6: register the inheritance at the Property Registry

Common errors:

Not requesting an extension when needed
Valuing too low: the ATG can verify and apply penalties
Forgetting local taxes: after inheriting, you're responsible for IBI and future plusvalía
Not registering at the Property Registry: without registration, you can't sell or mortgage
Not considering debts: accept benefit of inventory if debts are unknown