Inheriting from a brother or sister? Andalucía just dropped your tax bill by 99% « Euro Weekly News
Andalucía plans a major inheritance tax relief for siblings receiving a loved one’s main home. Photo credit: mapo_japan / Shutterstock
For families who worry that inheriting a brother or sister’s home in Andalucía could bring an unaffordable tax bill, major relief may be on the way. The Junta has announced plans to cut inheritance and gift tax by 99 per cent when a sibling receives a relative’s main home, a change expected to help around 3,500 people.
The proposal, announced by regional president Juanma Moreno, would mean that a brother or sister inheriting the family home would pay only a tiny fraction of the tax currently due. It would also apply where someone receives the property as a gift during the owner’s lifetime.
For many foreign residents with long standing homes in Andalucía, it could make a real difference to how they plan for the future. Spain’s property taxes can vary sharply depending on the region, the value of the home and the person receiving it, as our guide to Spanish property taxes in 2026 explains.
Why siblings have faced a bigger bill
Andalucía has already made inheritance tax far less painful for close direct relatives. Spouses, children, parents and grandparents can benefit from generous reliefs, including a 99 per cent tax reduction in many cases.
Brothers and sisters have not had the same protection. Under the Junta de Andalucía’s current inheritance tax guidance, siblings are in Group III, while spouses, children and parents are in the more favourable Group II.
That difference can be expensive. A sibling who inherits a loved one’s home can face a much larger bill than a spouse or child receiving a property of a similar value. In some families, this creates pressure to sell a home they had hoped to keep.
The new proposal aims to close that gap, but only for a person’s main home.
What the change could mean in practice
Imagine two brothers who have owned or lived around the same family home for years. If one dies and leaves their main home to the other, the surviving brother could currently face a tax bill because siblings fall outside the most generous family category.
Under the planned measure, 99 per cent of that tax would be removed.
The same principle would apply when one sibling gives their main home to another while they are alive. This could be important for families who want to put arrangements in place early, rather than leave everything to be dealt with after a death.
The distinction between gifting property and leaving it through a will matters in Spain. Read our guide to inheritance versus gift tax in Spain before assuming the two routes have the same cost or paperwork.
It is not a tax cut for every property transfer between brothers and sisters. The announcement concerns the owner’s habitual residence, meaning their genuine main home. A holiday flat, rental property or second home may not qualify.
Important. The tax cut is not yet in force
This is the point readers need to keep in mind. The Junta has announced the policy, but it has not yet published the final law, the full conditions or the date when the relief will start.
That means someone dealing with an inheritance now should not assume they can claim the 99 per cent reduction. Families should wait for the legal text before making decisions based on the announcement.
The final rules may include conditions about how long the recipient must keep the home, whether they must live in it and how the relief works if several people inherit shares.
Inheritance tax returns are normally due within six months of a death in Spain, although an extension can be requested in certain circumstances.
What foreign owners in Andalucía should do now
The announcement is a good reason to check who is named in your Spanish will. Many foreign owners naturally leave a property to a partner, child or sibling without realising that the relationship can radically change the Spanish tax outcome.
If you own a main home in Andalucía and intend to leave it to a brother or sister, this proposed change could be very good news. But do not rewrite a will, transfer a property or delay an inheritance filing solely because of the announcement.
For now, the sensible approach is to make a note of the change, watch for the final law and speak to a Spanish inheritance specialist if a transfer is imminent.
