Inheritance of your home in Spain

The Spanish legal and tax advice should be individual and specific to each client, and especially in the case of succession and Inheritance in Spain and its planning as the advice may be completely different due to the personal and family circumstances of each client. Therefore, each case must be studied carefully.

For instance a person passes away and leaves as a Spanish inheritance, a property in Andalucía with a total value of 200.000 Euros to his wife and his son. In this case the husband is the sole owner of the Spanish property.

First, we should confirm and proof if this property was the usual residence (home) of the deceased or not.

In the event that it was the usual residence of the deceased, the inheritors will enjoy a deduction of 99.99% when the dwelling constitutes transmitted habitual residence of the inheritors (Only in the region of Andalucía).

In the event that the Spanish property was the usual residence of the deceased and not the usual residence of the Inheritors, the same (spouse and son) may apply for an 95% reduction. Kindly note that there is a limit of 122,606.47 Euros.

The property must be kept by the inheritors 10 years since the death of the owner of the home without selling, without requiring the use as a residence and highlight again that the deceased must have regularity in the use of the dwelling.

Example:

1. If the spouse lived in the property at the time of decease of her husband, she will have a national reduction of 95% plus 4.99% of the remaining regional reduction. (A total of 99, 99% reduction).

The spouse inherits the home with a value of 200.000 Euros.

The spouse is inheritor of 50%  of the value of the Spanish property (meaning 100.000 Euros for the spouse and 100.000 Euros for the son).

In this exercise, the spouse may apply for an deduction of  99, 99%.

2. On the other hand if the son did not live in the house at the time of the death of his father, he may apply for an deduction of 95% by Spanish national ruling.

The son inherits the home with a value of 200.000Euros.

The son will inherit 50% of the value of the property (meaning 100.000 Euros for him and 100.000 Euros for his mother).

In this exercise the son may apply for a deduction of 95%.

Please note, that there are more reductions but these have not been taking into account in the above mentioned examples.

Do not hesitate to contact our law firm in Marbella, Arcos & Lamers Asociados: Your specialist lawyer in inheritance procedures and Inheritance tax in Spain.

Cecilio Sánchez, lawyer in Spain