All the costs of an inheritance explained step by step
Signings of inherited flats at notaries in Málaga have risen sharply in recent months. Many heirs still aren't sure what costs they have to pay when they inherit a home, and above all how to avoid conflict if there's a family dispute.
At Valoracasa Estate Agents we are experts in processing and selling inherited homes in Málaga.
WE PROCESS YOUR INHERITANCE FREE IF YOU SELL WITH US
Our goal is to spare clients all the hassle and formalities of inheriting a home, caused by the large amount of paperwork and the many formalities needed to inherit and sell the property.
As well as gathering all the necessary documents and going with you to the signing before the notary, we fill in the Junta de Andalucía forms for Inheritance Tax and municipal capital gains tax, and change the Land Registry entry to the heirs' names.
Every inheritance has particular conditions that depend on the amount and value of the assets inherited and the heirs' particular circumstances.
Where an inheritance is processed and how long it takes
To process an inheritance, you'll first need to gather all the necessary documents. Many people hire a gestoría to prepare everything needed for the signing before the notary.
Another option is to hire an estate agent who, as well as processing the inheritance, takes care of selling the home, saving time and money.
Once you have everything ready, book an appointment with a notary of your choice, preferably in the city where the flat is located, and attend with all the heirs to sign the deed of allocation of the inheritance.
It's important to know whether or not you have the deceased's will. If there's no will, you'll first need to sign a deed declaring the heirs, recording who the deceased's heirs are.
How long it takes to inherit
The formalities needed to inherit can take a total of three months, from starting to gather the documents to registering the inherited flat at the Land Registry.
Obviously this timescale can vary depending on how much time you can devote to it, and may even stretch to more than a year.
Bear in mind that you have six months to pay Inheritance Tax and municipal capital gains tax, and this is mandatory if you want to avoid claims, interest and costs.
If you don't have the time, it would be wise to hire a professional who, with their knowledge and time, will save you hassle and wasted time; you can also hire an estate agent to handle the sale of the home at the same time, significantly shortening the timescales.
At Valoracasa Estate Agents we have a department specialising in managing inherited flats and offer every service to help you with whatever you need.
Taxes and costs to pay
Apart from any problems that may arise between heirs, you should bear in mind the taxes and costs you have to pay when you inherit a flat.
First there's Inheritance Tax, which in Andalucía depends on the value of the assets inherited and the degree of kinship between the heirs and the deceased.
The rate can vary from 0% to 34%, without taking into account the various reliefs available.
Second, you'll have to pay municipal capital gains tax to the town council where the property is located. Unlike Inheritance Tax, it depends on other factors such as the cadastral value or the reference value of the property.
You'll have to pay both taxes within six months of the death, unless you request an extension or deferral.
Failing to file on time may result in a penalty depending on the seriousness of the offence.
Running costs of the flat
You'll also have to pay the running costs of the inherited flat, as with any flat. Community fees, IBI and home insurance are the heirs' responsibility from the death until the flat is sold. If the property has utilities such as electricity and water connected, they'll also have to pay those bills.
The heirs must notify the various bodies of the change of ownership and change the account the payments are debited from, even if they haven't yet signed before the notary or registered the ownership.
If you'd like to know the costs you'll have with the inheritance, you can consult our advisors free of charge. Tell us about your case and we'll study it at no cost or obligation. We want to help you
Sales of inherited flats are rising in Málaga
In most cases where a home is inherited, the aim is to sell it. According to estate agents nationwide, inheritances are the main reason for sales in Spain, especially in cities like Málaga with a large older population.
Sales of inherited flats have risen in Málaga in recent months, and many heirs have found a solution in selling.
Problems between heirs and difficulty agreeing lead them to opt for selling the home rather than owning an asset jointly.
Where there's a single heir, it solves one of the big problems young people face today: the difficulty of getting onto the housing ladder.
The repeal of Article 28 of the Mortgage Law, which prevented or hindered the sale of properties where the deceased left no direct heirs or will, has helped many homes that previously had to wait two years after the death to come onto the market.
Get free advice from us on how you're affected by the change to Article 28 of the Mortgage Law.
How to manage an inherited property and avoid conflict
Notaries point out that most homes are inherited by two or more people and, unless one of them has a lifetime usufruct, they must all agree on what to do with the property.
It's important that there are no conflicts or differences between the parties leading to disagreement over the inherited property, as the end result is bad for everyone.
The bar association recommends putting differences aside and selling the home if relations between the parties are poor, because if no agreement is reached, the dispute will have to go before a judge.
This means great expense and an enormous waste of time for everyone, not to mention that if there's no final agreement, the home will go to public auction and end up selling for far less than its market price.
This mainly happens when one party wants to sell the home and another doesn't, or when they can't agree on the sale price.
If there are differences or conflict between the parties, it's advisable to hire a neutral professional who, as well as handling all the formalities, sells the home at the highest possible price. That way each party profits from the sale and avoids any unpleasant situation with negative consequences.
If you've inherited a home and are in conflict with the other parties, you can consult our lawyers about your situation free of charge so they can advise you personally on possible solutions and we can help you.
For personalised information on Inheritance costs explained step by step, visit our oficinas or contact us on info@valoracasa.es o al 695033558
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