Tax Reductions · Majadahonda
Spanish inheritance tax can be significantly reduced — sometimes to near zero — through legitimate reductions and bonuses. We apply every reduction you are entitled to.
National reductions
Before any regional bonuses are applied, the national inheritance tax law grants the following reductions from the taxable base. These apply to all heirs throughout Spain, including in madrid:
| Category | Reduction (national minimum) |
|---|---|
| Group I — Children under 21 | €15,956.87 + €3,990.72 per year under 21 (max €47,858.59) |
| Group II — Spouse, children over 21, parents | €15,956.87 |
| Group III — Siblings, aunts/uncles, nieces/nephews | €7,993.46 |
| Group IV — Other relatives and non-relatives | No national reduction |
| Disability (33–65% disability) | Additional €47,858.59 |
| Disability (over 65%) | Additional €150,253.03 |
| Main residence (vivienda habitual) | 95% reduction up to €122,606.47 per heir |
| Family business or agricultural enterprise | 95% reduction on qualifying assets |
| Life insurance (group II, up to 3× annual income) | Up to €9,195.49 |
Regional bonuses in madrid
Spain's autonomous communities have wide powers to modify inheritance tax. In madrid, additional reductions and bonuses may apply on top of the national minimums above. These regional measures can dramatically reduce — and in some regions effectively eliminate — inheritance tax for close relatives.
We stay current with all changes to madrid's inheritance tax law and apply the maximum legal reductions for every heir in every case. Contact us for a specific calculation.
Request a tax calculation for MajadahondaPlanning opportunities
A well-drafted Spanish will can distribute the estate in a way that maximises available reductions. For example, leaving the main residence to the spouse or children in a specific way may unlock a 95% reduction on that asset.
See will options in Majadahonda →The 95% reduction on the vivienda habitual is one of the most valuable in Spanish law. It applies when the deceased's main residence passes to their spouse, children or parents, provided they do not sell for 10 years.
A 95% reduction applies to the value of a family business passed to close relatives, provided certain requirements are met. We assess whether any business interests in Majadahonda qualify for this relief.
If the deceased was resident in Spain, the region of fiscal residence determines which inheritance tax rules apply. This can make a significant difference to the tax liability — we advise on the applicable rules in each case.
Filing on time avoids late surcharges of 5–20%. We manage the full process to ensure the return is filed within the six-month window, maximising every available reduction without any time pressure.
If your home country also taxes the inheritance, we coordinate with your local tax adviser to ensure that double taxation relief is claimed where available, so you are not taxed twice on the same inheritance.
We calculate the maximum legal reductions for your estate and explain your options clearly before you commit to anything. The consultation is free.