Selling an inherited apartment in Catalonia is a process that, since the repeal of article 28 of the Mortgage Law in September 2021, can be started immediately after receiving the The heritage. However, before placing the sign "For Sale» It is essential to understand the legal procedures and the tax implications that come with them. In this article, we will guide you step by step and offer you advice to face the process by paying what is fair and necessary.
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Accept an Inherited Apartment
The process begins with the formal acceptance of the inheritance, which involves a series of legal procedures. It is essential to obtain the death certificate, the certificate of last wills, the life insurance certificate and the bank certificate of balances in checking accounts and deposits.
Once these steps are completed, the new ownership of the property must be registered in the Property Registry, which previously requires the settlement of certain taxes.
Inheritance tax and donations
The Anti-Tax Fraud Law 11/2021 introduced significant changes in the calculation of the Inheritance tax and Donations. The tax base to settle the tax will be the market value or the cadastral reference value, determined annually by the General Directorate of the Cadastre.
If you intend to sell a property, it is advisable to consult with expert advisors in Asset Management to have an accurate estimate of the sale price, since this will influence your income tax return for the following year.
Municipal Capital Gain
This tax taxes the increase in value of urban land and can be calculated in two ways:
- For the “objective” increase: Multiplying the cadastral value of the land by a coefficient determined by the time that the deceased owned the property.
- For the real value of the capital gain: Taking the difference between the acquisition price and the acceptance value of the inheritance.
You can choose the most economical method and then apply the percentage established by the corresponding city council to obtain the amount to pay.
Sell an Inherited Apartment
Once we are officially owners, we will be able to proceed with the sale of the apartment, facing the following taxes:
Municipal Capital Gain
We must settle this tax again, with the amount payable adjusted to the time we have owned it from the acceptance of the inheritance until the sale. The Anti-Tax Fraud law no longer allows you to avoid this tax even if you sell during the same fiscal year in which we accept the inheritance, except if the sale is made without profit or at a loss.
IRPF (Income Tax Return)
The profits obtained from the sale must be declared in the personal income tax. The benefit is calculated as the difference between the value of the property upon accepting the inheritance and the sale price. Depending on the amount of the profit, different tax brackets will apply, ranging from 19% to 26%.
However, if the sale is made at a lower value than initially declared, or if the property has become our habitual residence, these rates will not apply. In addition, those over 65 years of age have specific exemptions.
Steps to follow to sell an inherited apartment
- Obtain the certificates: To begin the procedures, it is necessary to obtain a series of certificates that will allow the will to be opened.
- Pay the ISD: The tax base will be the market value of the property, which is determined annually by the General Directorate of the Cadastre.
- Pay the Municipal capital gain: When paying this tax we can choose between 2 ways to do so, depending on the payment of interest.
- Registration in the register: Once the corresponding taxes have been paid, you can proceed to register the new ownership of the home.
- Pay Municipal Capital Gains again: After the sale is formalized, this tax must be paid again.
- Statement of income: The benefit would be the difference between the value inherited in the acceptance of the inheritance and the sale price of the property.
Other aspects to consider
The value placed on inherited property is crucial due to its tax consequences. Therefore, it is vital to have professional advice, which can offer an accurate valuation for the future sale and guide you towards the best tax alternative.
Remember, the definition of habitual residence according to the 16 / 2012 It includes that the property must be your effective and permanent residence for at least three years, or that you inhabit it within twelve months after its acquisition or completion of works.
Selling an inherited apartment in Catalonia can be a complex process, but with the right information and the right advice, you can make it as smooth and profitable as possible.
