Procedures before receiving an inheritance

The news of a death in a family is often difficult to deal with. Additionally, you must navigate the bureaucracy and challenges involved in settling everything.

Therefore, it is best to have a clear understanding of the process and seek professional advice if needed.

Steps before receiving an inheritance

Before receiving the inheritance of the deceased relative, it is necessary to do the following:

Obtain the death certificate.
Request the certificate of Last Will and Testament and any insurance contracts held by the deceased.
Make an inventory of assets and debts. Many people skip this step, accept the inheritance, and later regret it. It is not possible to know in advance what assets and debts a person has that will be inherited.
Acceptance and distribution of the inheritance. Without this step, the assets that make up the inheritance cannot be received.
Payment of inheritance tax. To understand the significance of this tax, in some cases it is even necessary to take out a loan to pay it due to its high amount.
Payment of other taxes and fees. There are other taxes that must also be paid in most inheritances, such as the Stamp Duty and the Tax on the Increase in the Value of Urban Land (capital gains on the property to the corresponding City Council). In addition, notarial fees must be paid (acceptance of inheritance, registration, deed).

Death certificate

The death certificate is a document that legally certifies that a person has died.

It can be obtained from the Civil Registry through one of the following methods:

In person. By visiting the Civil Registry with a prior appointment.
By mail. By sending a written request to the Civil Registry.
Online. Through the Online Portal of the Ministry of Justice.

Certificate of Last Will and Testament

The certificate of Last Will and Testament allows the relatives of a deceased person to find out whether a will exists and which notarial office holds it. This certificate also provides information on any life or accident insurance policies held by the deceased.

This certificate can be requested in the following ways:

In person. At the Central Citizen Service Office or any of the Territorial Management offices of the Ministry of Justice, by appointment.
By mail. By sending the request to the General Registry of Last Will and Testament Acts, which is part of the Ministry of Justice. The address is Plaza Jacinto Benavente, 3, 28012 (Madrid).
Online. To do so, you need a digital certificate to access the Electronic Office of the Ministry of Justice.

Acceptance of the inheritance

As we have previously stated, in order to receive the assets that make up the inheritance, it is necessary to accept it beforehand.

There are two ways to accept the inheritance in Spain:

Outright acceptance of the inheritance. This is the simplest way to accept the inheritance, accepting all it contains, including the assets, debts and liabilities of the deceased. This type of inheritance has unlimited effects, meaning the heirs will be personally liable for the debts, using their own assets in addition to those of the inheritance. It is crucial to know the composition of the inheritance before accepting it.
Acceptance of the inheritance with the benefit of inventory. In this case, debts are paid off before the estate of the deceased is distributed. The heirs are only liable for the obligations with the assets included in the inheritance, never with their own personal assets.

Paying taxes

Receiving an inheritance involves paying certain taxes and fees, as mentioned earlier.

Let’s take a look at the most important taxes related to inheritances in Spain.

Inheritance and Gift Tax (ISD)

This is a national tax applied throughout Spain, but each Autonomous Community has jurisdiction over it. For this reason, there are differences depending on where the deceased resided when paying the ISD.

There are also differences depending on the relationship of the heir to the deceased. For example, the tax is lower when the relationship is closer.

Municipal Capital Gains Tax

The Tax on the Increase in the Value of Urban Land (IIVTNU) is applied to real estate or land in urban areas included in the inheritance.

The Tax on Documented Legal Acts (AJD)

This tax also varies by Autonomous Community. Although it is an obligation for everyone, each region has its own regulations and tax rate.

Once these taxes are paid, everything will be in order, and you will be able to receive the inheritance you have already accepted. As we have seen, certain formalities must be completed before receiving an inheritance. The most important of these include obtaining the death certificate and the certificate of Last Will and Testament, formally accepting the inheritance, and paying the taxes. Without completing these steps, the inheritance assets cannot be received.

Further information

This article is part of our service Inheritance in Spain. Visit this section where you will find all the useful information on this topic, including a complete guide on Inheritance in Spain with a non-resident, expat or foreigner.

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