No two inheritances are the same
Planning or handling a gift or an inheritance properly requires knowledge of civil law and of the tax rules, both national and Andalusian. The aim is to avoid future disputes and keep costs to a minimum. Often an inheritance can be settled simply and cheaply at a notary’s office. In other cases, the situation calls for several notarial deeds or even court proceedings.
In Andalucía the Spanish Civil Code (Código Civil) applies. It reserves part of the estate for certain relatives, known as the forced share (legítima). A person making a will can leave the rest freely, but cannot deprive the forced heirs (herederos forzosos) of their share except in the cases the law provides for.
Accept or renounce: decide with full information
Nobody is obliged to accept an inheritance. There are three options:
- Accept outright, known as unconditional acceptance (aceptación pura y simple): you receive the assets, but you are also liable for the deceased’s debts, even with your own assets.
- Accept with the benefit of inventory (aceptación a beneficio de inventario): you are only liable for the debts up to the value of the assets you inherit.
- Renounce: you receive nothing and are liable for nothing. It is done before a notary and cannot be undone.
Be careful with certain acts the law treats as tacit acceptance, such as selling or disposing of assets from the estate. If you are not sure whether the estate has debts, ask before doing anything with the assets.
Inheritance taxes in Andalucía
Inheriting or receiving a gift is subject to inheritance and gift tax (impuesto sobre sucesiones y donaciones), which in Andalucía is regulated by the regional government, the Junta de Andalucía. Close relatives such as a spouse, children or parents currently benefit from significant reductions and allowances. That does not remove the obligation to file the return, and some of these advantages have specific requirements. For inheritances, the general deadline is six months from the date of death, and an extension can be requested within the first five months. I explain this in the article on inheritance tax in Andalucía (in Spanish).
If you inherit an urban property, you may also have to pay the plusvalía municipal tax, a local tax on the increase in the value of the land. If there has been no real gain in the value of the land, it is not payable, and in other cases you can choose the more favourable calculation method. With a gift, the person giving may also have to pay tax in their income tax return on the increase in value of the asset. That is why it is worth planning a gift before signing.
Inheritances of foreign residents
Many of my clients are foreigners who live in the Axarquía or own a home here. Since 2015 the EU Succession Regulation (Regulation (EU) No 650/2012) has applied. As a general rule, the estate is governed by the law of the country where the deceased was habitually resident, unless they chose the law of their nationality in their will. Making a will in Spain, before a notary, makes things much easier for the heirs. If you live here or are thinking of moving here, you may also find the page on residence for EU citizens useful.
If you would like me to review your case, you can start with the online consultation.