What does it involve?
Processing an inheritance involves distributing assets among different people before or after a death.
In these cases, after the death, the inheritance is distributed by signing a deed of inheritance in accordance with the will. If there is no will, a declaration of heirs is made. This procedure requires two witnesses who will certify their relationship to the deceased, and then a deed of inheritance must be drawn up at a notary's office.
Before accessing the assets, the heirs must go to a notary's office and accept the inheritance by signing a deed of acceptance and adjudication of inheritance. Only then can they use the inherited assets and carry out various transactions such as selling or renting them.
Filing deadlines
Inheritances must be self-assessed within six months of the deceased's death. If four and a half years have passed since the date of death, the inheritance is no longer subject to the statute of limitations.
To file the self-assessment, you will need the deed of inheritance along with the corresponding form. Although the execution of the deed can be postponed, the self-assessment cannot. Therefore, you must attach the form along with a list of the assets, the will, and the death certificate.
Tax Treatment
Inheritance is subject to Inheritance and Gift Tax, a tax transferred to the autonomous communities, and the 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.
Required Documentation
Death certificate and certificate from the General Registry of Last Wills and Testaments, along with a certified copy of the will.
If there is a declaration of intestate heirs, a certified copy of the deed or a certified copy of the court act declaring heirs.
Details of the heirs and spouse (if applicable). National Identity Document (DNI).
Property titles for the inherited assets.
Property tax (IBI) receipts for the last year.
Bank statements for securities, accounts, and investment funds included in the inheritance, and statements of transactions for the previous year.
Any outstanding debts and expenses incurred directly related to the death.