Inheritance tax in the Balearics: what heirs pay
Inheritance tax in Spain is a national tax with regional reliefs, so the amount an heir pays in the Balearics depends chiefly on which kinship group they fall into, with children, spouses and parents treated far more favourably than distant relatives or unrelated heirs.
gelisted editorial team · Updated 15 August 2026
The short version
- Heirs are classified into 4 kinship groups that determine the reliefs.
- The filing deadline is 6 months from death, extendable by 6 more.
- The taxable base uses the reference value for property.
- Non-residents may apply the regional rules of the relevant region.
The single question that decides the bill is not how much the estate is worth. It is who is inheriting, because the groups are treated very differently.
The four groups
Group 1 covers descendants under 21. Group 2 covers descendants of 21 and over, spouses and ascendants. Group 3 covers siblings, nieces and nephews, uncles and aunts, and relatives by marriage. Group 4 covers more distant relatives and unrelated persons. Regional reliefs in the Balearics have been very substantial for groups 1 and 2 and considerably less generous for groups 3 and 4.
| Element | Rule | Note |
|---|---|---|
| Group 1 | descendants under 21 | most favourable treatment |
| Group 2 | children over 21, spouse, parents | favourable treatment |
| Group 3 | siblings, nephews, uncles | limited relief |
| Group 4 | unrelated heirs | least relief |
| Property valuation | reference value applies | |
| Filing deadline | 6 months from death | extendable by 6 |
| Extension request | within the first 5 months | |
| Non-residents | may apply regional rules |
The deadline that catches families out
Six months from the date of death, extendable by a further 6 if the request is made within the first 5 months. That extension is not automatic and is frequently missed while the family is still gathering documents from another country. Late filing carries surcharges, and where the estate's main asset is a property that cannot be sold to fund the tax until it has been accepted, the timing pressure is real.
Foreign owners
Non-resident heirs and heirs to non-resident deceased may apply the regional rules of the region where the assets are located, following the equal treatment principle established in EU case law. This matters a great deal, because the difference between national default rules and Balearic reliefs on the same estate can run to tens of thousands of euros for a group 2 heir.
Where the deceased left a foreign will, a Spanish will covering the Spanish assets normally shortens the process by several months.
What the process needs
The death certificate, the certificate of last wills, the will itself, the deeds of the Spanish property, the last IBI receipt showing the cadastral reference, bank certificates as at the date of death, and identification and NIE numbers for every heir. Each heir needs their own NIE, which on its own can take 3 to 6 weeks, so that application should start in the first month rather than the fifth.
Frequently asked
+What decides how much an heir pays?
Chiefly the kinship group, since regional reliefs treat children, spouses and parents far more favourably.
+What is the deadline?
Six months from the date of death, extendable by a further six if requested within the first five months.
+How is the property valued?
Using the cadastral reference value as the minimum taxable base.
+Can non-residents use the regional reliefs?
Yes, following EU case law on equal treatment, which can change the bill substantially.
+What documents are needed?
Death certificate, certificate of last wills, the will, property deeds, IBI receipt, bank certificates and a NIE for every heir.
Sources
- 1Govern de les Illes Balears, Govern de les Illes Balears (August 2026)
- 2Consejo General del Notariado, Notariado (August 2026)