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Everything you need to know if you inherit a property.
Sometimes, in addition to the sadness that comes with the death of a loved one, we find that the situation of inheriting a property can be a headache / obligations that we did not have.
n these lines, we briefly summarise the different payments involved in inheriting a property:
- Inheritance tax. The Inheritance Tax is a state tax and it depends:
– The higher the value of the goods received, the higher the payment and vice versa;
– On the relationship with the deceased, the more distant the relationship, the higher the percentage of the payment and vice versa (although there is a minimum exemption);
– From the previous patrimony of the heir, if the heir has a considerable patrimony prior to the inheritance it is also more expensive.
As in other tax matters, the Autonomous Communities have the power to apply allowances by means of the tax rate applied.
In the Valencian Community, all inheritances have a 75% discount on the part of the tax liability corresponding proportionally to each heir, to which other discounts must be added due to the family relationship, disability or because it is the habitual residence of the deceased.
- In general, the descendants, ascendants and spouse will not have to pay the Inheritance Tax, up to a maximum of 100,000 euros. Siblings and nephews will be exempt from the first 7,993 euros.
- If the heir is a person with an accredited disability, he or she will not have to pay Inheritance Tax up to an amount of the inheritance of between 120,000 and 240,000 euros, depending on the degree of disability.
- For the purchase of the deceased’s habitual residence, the heirs may be entitled to a discount of 95% of the value of the home, provided that they are descendants, ascendants, spouses or siblings, cousins, uncles or other collateral relatives over 65 years of age who lived with the deceased during the two years prior to the death. It is a necessary condition not to sell the property during the following five years.
2. The municipal capital gains applied to the inherited assets.
The deadline for presenting this type of tax is 6 months from the death, but an extension of the same period can be requested within the first 5 months. During this period the sale of the inherited property can be managed to obtain liquidity and to be able to pay both the taxes and the notary, registry and management fees.
Currently, the number of waivers in cases where the expenses of the inheritance exceed the assets of the estate has increased a lot, so it is very important to be well advised by professionals in order to manage the options of deferral and fractioning of taxes that exist, the sale of property or other legal figures that may apply in some cases. For example, a figure that is not very well known and can solve problems in some situations is the acceptance of the inheritance to “Profit from inventory”, in which the inheritance is accepted only in cases where the asset is greater than the liability, once all debts are paid with the assets of the inheritance, never with your own.
Calculating how much a taxpayer who receives an inheritance will have to pay can be difficult and laborious, so the best option is to turn to professionals who specialize in inheritance matters.
At Asmcasas we offer you a comprehensive service; if you have inherited a property and/or you do not know who to turn to to to manage your inheritance, call us and our legal department will advise you and resolve all your doubts.