What does it consist of?
Processing an inheritance involves distributing assets among different individuals, either before or after a person’s death.
In these cases, after the death, the inheritance is distributed by executing a deed of inheritance in accordance with the testator’s will. If no will exists, a declaration of heirs is carried out. In this procedure, two witnesses are required to certify the deceased’s family relationships, and subsequently, a notarial deed of inheritance must be executed.
Before taking possession of the assets, heirs must appear at the notary and accept the inheritance, signing a deed of acceptance and allocation of inheritance. Only then can they make use of the inherited assets and carry out transactions such as sales, rentals, or other operations.
Deadlines
Inheritances must be self-assessed within six months following the date of death. If four and a half years have passed since the death, the inheritance is considered time-barred.
For self-assessment, the deed of inheritance must be submitted along with the corresponding form. While the execution of the deed can be postponed, the self-assessment cannot, and the form must include a list of assets, the will, and the death certificate.
Tax Treatment
Inheritances are subject to the Inheritance and Gift Tax, which is administered by the autonomous communities, and the rules vary depending on the region.
Additionally, the heir must pay the municipal capital gains tax (Plusvalía Municipal) for any inherited real estate.
Required Documentation
Death certificates and certificates from the General Registry of Last Wills, along with a certified copy of the will.
If there is a declaration of heirs ab intestato, a certified copy of the act or judicial testimony of the declaration of heirs.
Personal data of heirs and spouse (if applicable), including ID (DNI).
Ownership titles of the inherited assets.
Latest IBI receipts.
Bank certificates of securities, accounts, investment funds included in the inheritance, and account statements from the previous year.
Any debts or expenses incurred directly due to the death.