What is it about?
Processing an inheritance consists of distributing assets among different individuals before or after a person’s passing.
In these cases, after the death, the inheritance is divided by signing an inheritance deed in accordance with the will. If no will exists, a process known as the declaration of heirs is carried out. In this procedure, it is necessary to bring two witnesses who will certify their relationship with the deceased. Afterward, the inheritance deed must also be processed at the notary.
Before taking possession of the assets, the heirs must go to the notary and accept the inheritance, signing a deed of acceptance and adjudication of the inheritance. From then on, they will be able to make use of the inherited assets and complete various transactions like a sale or a lease, among others.
Deadlines for Submission
Inheritances must be self-assessed within six months following the deceased's death. If four and a half years pass since the date of death, the inheritance is considered prescribed.
To complete the self-assessment, the inheritance deed, along with the corresponding form, is required. Although the execution of the deed can be delayed, the self-assessment cannot. The form must be submitted with a list of assets, the will (if any), and the death certificate.
Tax Treatment
Inheritance is subject to the Inheritance and Donations Tax, a tax managed by the autonomous communities, and the treatment varies depending on the specific region.
Additionally, the Municipal Capital Gains Tax (Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana) must be paid by the person inheriting real estate.
Necessary Documentation
Death certificate and General Register of Last Wills certificate, along with the authenticated copy of the will.
If there is a declaration of heirs (abintestato), the authenticated copy of the act or the court’s testimony declaring the heirs.
Heirs' details and spouse’s details (if applicable). National ID (DNI).
Titles of ownership of the assets being inherited.
IBI receipts from the last year.
Bank certificates of securities, accounts, and investment funds included in the inheritance, as well as bank statements from the previous year.
Debts that may exist, and expenses incurred due to the death.