The home in Spain
Spanish IHT legislation states that, subject to certain conditions, the value of the family home can be reduced by 95% subject to a maximum of £75,500 (20,000,000ptas). However, any tax saved can be clawed back, with interest if the home is sold within 10 years, except on the death of the recipient. Since many surviving spouses return to the UK following the death of their partners, this 95% reduction has little meaning in practice.
There are however, several ways to reduce any liability to IHT and you should seek professional advice. The information given here is only a rough guide and bear in mind that legislations and allowances do change.