Inheritance Tax in Madrid: The 99% Bonificación Explained (2026)
In the Comunidad de Madrid, a spouse, child or parent inheriting from a family member pays close to nothing in impuesto de sucesiones, not because the underlying tax is small, but because a 99 percent bonificación wipes out almost the entire cuota. The state scale, the reductions and the coefficient described on the inheritance tax overview still apply first. Madrid's bonificación is the last step, and it is the step that changes everything for close family.
Information last verified on 23 July 2026. This page describes Madrid's current bonificación under art. 25 of Decreto Legislativo 1/2010, in force since 1 July 2025. Bonificaciones change with each autonomic budget; verify the current text against the BOE or the Comunidad de Madrid's own tax portal before relying on a specific figure.
Who counts as Grupo I, II and III in Madrid
Madrid's bonificación uses the same kinship groups the state law defines in art. 20.2.a) of Ley 29/1987. Grupo I is descendants and adopted children under 21. Grupo II is descendants and adopted children of 21 or over, spouses, ascendants and adoptive parents.
Grupo III is collaterals of the second and third degree by blood, meaning siblings, aunts and uncles, and nieces and nephews, plus relatives by affinity such as in-laws. Grupo IV covers everyone else: collaterals of the fourth degree, more distant relatives, and unrelated heirs such as friends or partners without a registered status. Madrid's art. 25 gives Grupo IV nothing.
The 99 percent bonificación for Grupo I and II
Article 25.1 of Decreto Legislativo 1/2010 states it plainly: subjects in Grupo I and II apply a 99 percent bonificación «en la cuota tributaria derivada de adquisiciones mortis causa y de cantidades percibidas por beneficiarios de seguros sobre la vida que se acumulen al resto de bienes y derechos que integren la porción hereditaria». In practice, once the state scale and coefficient produce a cuota tributaria, Madrid collects only 1 percent of it.
This is why a spouse or child inheriting a family home and some savings in Madrid often pays a bill in the hundreds of euros rather than the thousands the raw state scale would suggest. It does not mean the estate is untaxed. It means the last step in the calculation removes almost all of what the earlier steps produced.
Grupo III: 50 percent since 1 July 2025
Before 1 July 2025, Grupo III heirs in Madrid received a 25 percent bonificación. Ley 2/2025 raised that to 50 percent, effective from that date, and the current consolidated text of art. 25 confirms the higher figure is now in force.
A sibling or niece inheriting in Madrid today pays half the cuota that the state calculation would otherwise produce. That is an improvement on the pre-2025 rule, but it is still far short of the 99 percent that close family receives.
A worked example: what 99 percent off actually means
Numbers make the mechanism concrete. Take an adult child inheriting a base liquidable of 100.000 € after the state reductions described on the inheritance tax overview have already been applied. Running that base through the state scale (art. 21 Ley 29/1987) produces a cuota íntegra of about 12.415 €: 9.166,06 € for the first 79.880,52 €, plus 16,15 percent on the remaining 20.119,48 €.
Assume the heir's own pre-existing wealth keeps the coefficient at 1,0, the lowest tier under the state table (art. 22). The cuota tributaria before any bonificación is the same figure, about 12.415 €. Madrid's 99 percent bonificación then reduces the amount actually owed to roughly 124 €.
This is a simplified illustration built from the verified state scale and Madrid's verified bonificación rate, not a substitute for a real calculation with a gestor or asesor. It shows why «99 percent bonificación» is not a marketing phrase. It removes almost the entire bill for Grupo I and II heirs.
The residence connection
Madrid's rules apply because of where the deceased lived, not where the heirs live. Under the state punto de conexión rules, an inheritance is taxed under the comunidad where the causante had habitual residence at the date of death.
A child living in another comunidad still benefits from Madrid's 99 percent bonificación if the parent who died was habitually resident in Madrid. The reverse is equally true: an heir's own residence in Madrid does not import Madrid's bonificación if the deceased lived elsewhere.
Where this fits
This page covers only Madrid's bonificación step. For the full state mechanism, the six-month filing deadline, and how the scale and coefficient work, see the inheritance tax overview. To compare Madrid against the other comunidades and the two foral regimes, see the inheritance tax comparison by comunidad.
This page is general legal information about Madrid's regional tax rules and does not constitute legal or tax advice in an individual case. Bonificaciones change with each autonomic budget; verify the current figures against the BOE or the Comunidad de Madrid's tax portal before acting.
This page is general legal information about Spanish tax law and does not constitute legal advice in an individual case. The controlling texts are the current versions in the BOE and each comunidad's consolidated tax rules, which change frequently.
Frequently Asked Questions
Do children pay inheritance tax in Madrid?
In practice, very little. A child inheriting in Madrid falls in Grupo I or II and applies a 99 percent bonificación to the cuota tributaria, so the underlying state calculation is reduced to roughly 1 percent of what it would otherwise be, though the state reductions and scale still apply before that final step.
How much has Madrid's bonificación for siblings changed?
Grupo III heirs, including siblings, moved from a 25 percent bonificación to a 50 percent bonificación effective 1 July 2025 under Ley 2/2025, which amended art. 25 of Decreto Legislativo 1/2010. Grupo III still receives far less relief than the 99 percent Grupo I and II get.
Does Madrid's 99 percent bonificación apply to gifts as well as inheritances?
Article 25.1 of Decreto Legislativo 1/2010 addresses adquisiciones mortis causa, meaning inheritances and life-insurance sums paid on death. This page does not cover Madrid's rules for lifetime gifts, which are governed separately; do not assume the same 99 percent figure automatically applies to a gift made while the donor is alive.