Inheritance · CV vs Murcia (ISD compared)

What is taxed and which rules apply

Each heir is taxed on what they receive, not the estate as a whole, and the tax arises on the date of death: the rules in force on that day apply, not those in force when the deed is signed.

Which region's rules apply is decided by the deceased's habitual residence, not the heirs'. If the deceased did not live in Spain, the rules of the region holding the greatest value of the assets located in Spain apply: with a single home on the Costa Blanca, the Valencian ones. Non-resident heirs, including those in the United Kingdom after Brexit, are entitled to those same regional rules.

Reductions in the Valencia region

A spouse, children and parents (Groups I and II) apply a reduction of €100,000 per heir, far above the €15,956.87 of the state rules, followed by a 99% credit against the tax due. If the home was the deceased's habitual residence, a further 95% of its value is reduced, capped at €150,000 per heir, with an obligation to keep it for 5 years.

From 1 June 2026, siblings, aunts, uncles, nephews and nieces by blood (Group III) have a 25% credit against the tax due, rising to 50% on 1 June 2027. What counts is the date of death, not the date of the return.

Deadlines

The modelo 650 must be filed and paid within 6 months of the date of death, one per heir. You can request an extension of a further 6 months, but only within the first five: after that, it is refused. The extension avoids surcharges, not late-payment interest.

The municipal plusvalía is a separate procedure with the town hall, with its own 6-month deadline that can be extended up to one year. Extending inheritance tax does not extend the plusvalía.

How we help

With the calculator you compare the tax in the two regions. If you instruct us to handle the inheritance, we place each heir in their kinship group, check the Catastro reference value at the date of death, which is the taxable base, and prepare one modelo 650 per heir. If an heir does not live in Spain, it is filed with the State tax administration even though the Valencian rules apply. And if the paperwork will not be ready in time, we request the extension before the fifth month ends.

Common mistakes

• Quoting the Valencian scale, from 7.65% to 34%, without first deducting the reduction and then applying the credit.
• Requesting the extension after the fifth month: it is refused and cannot be corrected later.
• Applying the habitual-residence reduction to a holiday home: it only applies to the deceased's habitual residence.
• Declaring the cadastral value shown on the IBI bill instead of the Catastro reference value.
• Assuming an unmarried partner is in Group II: without registration in a register of civil partnerships, they fall into Group IV, with no reduction and no credit.
• Filing modelo 652, which was abolished with effect from 1 January 2015.