After accepting an inheritance, the next mandatory step before you can register the property in your name is to settle the Inheritance and Gift Tax (Impuesto sobre Sucesiones y Donaciones). Failing to pay this tax within the legal deadline can lead to significant surcharges and interest.

How is Inheritance Tax Calculated?

The calculation of inheritance tax is complex, as it depends on several factors:

• Real Value of the Assets: It is calculated on the total value of the inherited assets, including the property.
• Degree of Kinship: The closer the relationship to the deceased (e.g., from parents to children), the lower the tax liability.
• Autonomous Community: This tax is devolved to the Autonomous Communities, so there are significant differences. Some regions offer allowances of up to 99% for direct heirs.
• Heir's Pre-existing Wealth: In some regions, having substantial pre-existing wealth can reduce the available allowances.

Deadlines and Obligations for Non-Residents

The deadline to pay the tax is six months from the date of death, although an extension can be requested. It is important to note that non-resident heirs are also required to pay this tax in Spain for assets located in Spanish territory. The process is managed through the national Tax Agency.

Proper tax advice is essential to apply all possible allowances and to plan in a way that minimizes the inheritance tax burden. This is especially relevant before proceeding with the sale and having to calculate the Plusvalía tax.