2023-05-26 13:40:08
Friday, May 26, 2023, 1:30 p.m.
What taxes must be paid when inheriting a house? What happens if there is no will or if there are several heirs? What are the advantages of making a will? We explain everything you need to know about the will and inheritance of a home.
He Testament is the document in which a person expresses his will about how he wants his assets to be distributed after his death. Making a will is highly recommended to avoid conflicts between the heirs and facilitate the inheritance process. In addition, it can mean tax savings, since inheritance tax reductions and bonuses can be applied.
He Inheritance tax is the tax that the heirs must pay when receiving an inheritance. The amount of the tax depends on several factors, such as the value of the inherited assets, the degree of kinship with the deceased, the previous heritage of the heir and the autonomous community where it is taxed. Each autonomous community has its own regulations and its own tax benefits, so the tax can vary greatly depending on the place.
One of the most common assets in inheritances is the home. When inheriting a house, two taxes must be taken into account: the inheritance tax and the municipal capital gains tax. The first is paid for the value of the house at the time of the deceased’s death. The second is paid for the increase in the value of the land from the time the deceased acquired the house until it is transferred to the heirs.
To calculate the inheritance tax, a series of coefficients must be applied to the value of the house. These coefficients depend on the kinship with the deceased, the previous patrimony of the heir and the reductions and allowances established by each autonomous community. For example, in some communities there is a 95% reduction in the tax base for descendants, ascendants and spouses who inherit the principal residence of the deceased.
In the geographical breakdown, Asturians and Castilian-Leonese are the ones who must pay the most when receiving an inheritance. The Basque Country occupies ninth place in a ranking that shows that inheriting is notably cheaper in Andalusia and Cantabria.
Inheritance taxes in Euskadi
While in the Wealth Tax there are some differences between the Basque territories -the scale remains at 2% in Bizkaia, compared to 2.5% in Gipuzkoa and Álava-, in the case of Successions the harmonization is total. Euskadi applies a reduction of 400,000 euros for direct descendants. From that amount, the fee is 1.5%. This is the percentage that has been set for the remaining 400,000 euros -after the reduction of many others- to calculate the amount that a Basque pays -6,000 euros- in said example. As is the case with the Wealth Tax, the collection weight of this tax since 2006 in Gipuzkoa is not particularly significant, since it is around 1% of annual income.
Calculation of municipal capital gains
To calculate the municipal capital gains tax, the cadastral value of the land must be multiplied by a percentage that depends on the years elapsed from the acquisition of the house until the death of the deceased. A tax rate is applied to this result, which is set by each council. This tax must be paid by the heir within six months from the death of the deceased, although an extension of another six months can be requested.
Inheriting a home is not as easy as it seems. For this reason, it is important to have professional advice to help you manage all the procedures and optimize the tax burden.
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