What taxes do you have when inherit a property

Inheriting property can be big news. However, before accepting an inheritance, it must be taken into account that inheritance entails a series of expenses, among which the taxes that the state, through the different administrations, will demand of you.

Inheritance taxes

When you inherit property, you must pay 2 different types of taxes:

Inheritance and gift tax

It is applied on the basis of the valuation of the property (which may or may not coincide with its market value) and applying a percentage scale. Its amount varies between 7.65% and 34% of the appraisal amount.

In some autonomous communities the habitual residence is not subject to this tax when the person who inherits it is a direct relative, for example in the Canary Islands, where the closest relatives have a 99.9% bonus, which makes the tax symbolic. In other communities, such as Navarra, properties taxed below 250,000 do not pay inheritance tax.

It must be paid in the first 6 months after accepting the inheritance.

Tax on the increase in the value of urban land

Also called municipal capital gain, this is a tax on the increase in value that the property may have had in the last 20 years, and is collected by the municipalities, which are the ones that establish its amount.

It is important to know that the municipal capital gain is only paid by urban estates, that is, you will not have to pay anything for it if what you inherit is a rustic property.

Other expenses

Apart from taxes, the acceptance of an inheritance involves a number of extra costs, as notarial documents have to be signed and, in some cases, lawyers and managers have to be hired. A notary will charge you between €100 and €2000 depending on the value of the inheritance, while lawyers will charge a percentage of the value of the inheritance. As far as managers are concerned, it costs between €100 and €200 to consult one.

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