Before receiving an inheritance, it is necessary to accept it and settle the corresponding taxes.
Author: Lidia Orellana
Source: tododisca.com

When someone dies, the process of distributing their inheritance is more complex than it seems. It is not automatic. That is, the person does not pass away, and the assets are simply distributed. In fact, inheritance law outlines a detailed process to protect the deceased’s assets and the heirs. Therefore, the first thing to do when a family member passes away is to request the Certificate of Last Wishes to determine if a will was made.

If a will was made, it will list all the assets that make up the inheritance. These can be tangible assets, such as properties, apartments, houses, or commercial premises, or monetary assets, such as bank accounts with cash or insurance policies. The will also includes other provisions about the deceased’s wishes, such as what should be done with their remains or the fate of their pet. Another crucial part of this document is the list of heirs.

If no will was made, the inheritance will be distributed according to the law. This means equally among all compulsory heirs. Even knowing the value of the assets and the heirs entitled to them, partitioning the inheritance cannot yet take place. The heirs must accept the inheritance. This means accepting the rights and obligations that come with it. However, it is possible to refuse the inheritance or accept it with benefits of inventory.

Money to Pay to the Tax Authorities for Receiving an Inheritance

One of the fundamental steps after knowing the essential details of the inheritance distribution is settling the taxes. In Spain, the Civil Code regulates the payment of Inheritance and Gift Tax. This tax specifies the payment that must be made by a person who receives any property, money, or any type of asset through inheritance. In fact, the law states that the heir cannot access the inheritance until this tax has been settled.

It is impossible to establish an exact amount to be paid. This is because the responsibilities for the Inheritance and Gift Tax are delegated to the Autonomous Communities. This means that the amount to be paid will vary depending on where the deceased lived. In fact, there are exemptions through which, if the inherited asset does not exceed a certain amount and the heirs are first-degree relatives (children or parents), you will be exempt from paying this tax.

How to Calculate the Payment to the Tax Authorities

The rest of the amount to be paid to the tax authorities for receiving an inheritance is calculated using a formula that considers various factors. Among these, the heir’s age, their place of residence, and their relationship to the deceased must be taken into account. However, in general terms, the percentages established by law are:

• Inheritances of less than €7,999: Approximately 7.65% tax.
• For amounts between €7,999 and €31,956: The tax rate ranges from 7.65% to 10.2%.
• An average inheritance of €31,956 to €79,881: The tax rate is between 10.2% and 15.3%.
• For amounts between €79,881 and €239,389: The tax rate ranges from 15.3% to 21.25%.
• Inheritances valued between €239,389 and €398,778: The tax rate is 25.5%.
• For amounts between €398,778 and €797,555: The tax rate is 29.75%.
• Inheritances exceeding €797,555: The tax rate is 34%