The 95% rule applies everywhere in Spain. In some regions it is 99%.

It applies to tax residents only who leave their share to a spouse or child. There is a limit to the value of the inheritance. It only applies to the first €122k - the rest is liable to IHT. It also applies to a more distant relative who has lived with the deceased for two years. The house must have been the main residence of the deceased for the last three years.

The allowances apply even if the recipient is not tax resident. In all cases the house cannot be sold for 10 years but it does not need to remain as the main home of the beneficiary for that period.

In many regions there are much more generous rules.

Is the 3 years as main residence the only stipulation the only time limit Fred or is there an amount of time tax resident as well? 5 years maybe . Also so if a non resident close family member inherits, they also get the allowance?

Three years living in it as a tax resident.

Yes, a close relative, non resident gets the allowance.

As I said, in some regions there are much bigger allowances, possibly even no effective IHT but that may require 5 years of tax residency in that region and the beneficiaries may also need to be similarly resident.

It's a very complicated subject and changing all the time - usually for the better for a change.

Thanks Fred not all bad news at least