What does it consist of?
Processing an inheritance consists of distributing assets among different persons, either before or after a death.
In these cases, following the death, the distribution of inheritance is carried out by executing a deed of inheritance in accordance with the will. If there is no will, what is known as a declaration of heirs will be made. In this procedure, it is necessary to attend with two witnesses whose role is to certify the relationship with the deceased, after which an inheritance deed must also be executed before a notary.
Before disposing of the inherited assets, the heirs must go to the notary and accept the inheritance, signing a deed of acceptance and adjudication of inheritance. From that point onward, they may make use of the inherited assets and carry out different types of transactions, such as a sale or a lease, among others.
Deadlines for filing
Inheritances must be self-assessed within six months of the date of death. If four and a half years have passed since the date of death, the inheritance becomes time-barred.
To carry out the self-assessment, the deed of inheritance is required together with the corresponding form. Although the granting of the deed may be postponed, the self-assessment may not, for which the form must be submitted along with an inventory of the assets, the will, and the death certificate.
Tax treatment
Inheritance is subject to the Inheritance and Gift Tax, which is a tax transferred to the autonomous communities, and its treatment varies depending on the specific Autonomous Community.
The municipal capital gains tax (Tax on the Increase in Value of Urban Land) must also be paid by the person inheriting real estate property.
Required Documentation
Death certificates and certificate from the General Register of Last Wills, together with the authorized copy of the will.
In cases of intestate succession, the authorized copy of the notarial act or certified copy of the judicial act declaring the heirs.
Details of heirs and surviving spouse (if applicable). National Identification Document (DNI).
Title deeds of the assets subject to inheritance.
Property Tax (IBI) receipts from the previous year.
Bank certificates of securities, accounts, and investment funds included in the inheritance, as well as account statements from the previous year.
Outstanding debts, if any, and expenses directly related to the death.