Do I have to pay inheritance tax in Tenerife?

Most close relatives receive a 99.9% inheritance tax reduction in Tenerife. This means spouses, children, parents, siblings and grandchildren usually pay almost no tax.

Do I need to travel to Tenerife to complete an inheritance?

No. Most heirs sign a Power of Attorney and the entire process can be completed without travelling to Tenerife.

How long does Tenerife inheritance take?

Most Tenerife inheritance cases take between 1 and 3 months if the death occurred in Spain, or 3 to 6 months if it occurred abroad.

Can I sell an inherited property in Tenerife?

Yes, but only after the inheritance deed has been signed and the property is registered in the heirs' names. All heirs must agree to the sale.

What documents do I need for a Tenerife inheritance?

You need a death certificate, Certificate of Last Wills, the will (if any), passports, NIE numbers, property deeds, and bank information where applicable.

Inheritance Tax in Tenerife: Who Pays and How It Works

The Canary Islands, including Tenerife, now offer one of the most generous inheritance tax systems in Spain. Thanks to a 99.9% tax reduction, most families pay little to no inheritance tax. This guide explains who qualifies, how the tax is calculated, and what non-residents need to know.

The 99.9% Inheritance Tax Reduction Explained

Since September 2023, heirs in Groups I, II and III receive a 99.9% reduction on their tax bill. This includes:

Children and grandchildren
Spouses and partners (depending on registration)
Parents and grandparents
Siblings, nieces and nephews

This covers the vast majority of typical inheritance situations. More distant relatives or non-relatives are the only groups that still face significant tax bills.

How Is the Tax Calculated?

Spain uses national tax tables to calculate a “theoretical tax,” then applies the Canary Islands’ 99.9% reduction. This means even high-value estates often result in very small payments.

Example

An inheritance that would normally generate €12,000 in tax might result in a final payment of around €12 after the island’s rebate.

Do Non-Residents Pay Inheritance Tax?

Yes — inheritance tax is always based on where the asset is located, not where you live. If you inherit a Tenerife property, you must file the inheritance tax declaration in Spain, even if you live abroad.

Most EU/EEA heirs receive the same benefits as residents. UK and non-EU residents can also often qualify, but the process may require more paperwork.

Other Taxes You Must Pay

Plusvalía Municipal – Local tax charged by the town hall when property changes ownership.
Notary and Registry Fees – Standard fees for transferring ownership.
Capital Gains Tax – Only applies later if you sell the inherited property.

When Must Tax Be Filed?

The inheritance tax declaration (Modelo 650) must be filed within six months of the date of death. Extensions are possible but must be requested early.

Need Help Calculating Your Tax?

Most people are surprised by how little tax they end up paying in Tenerife. If you’ve inherited a property and are thinking of selling, getting clear advice can help you understand all costs involved and avoid delays.