Selling an inherited apartment may seem like a complicated process, but in this article, we will unravel the legal steps to simplify it. If you find yourself in the situation of having inherited an apartment, we will guide you through the essential steps you need to follow to sell it. From the initial requirements for claiming the inheritance to the taxes involved, here you will find everything you need to know to put your inherited apartment on the market in Catalonia.
Acceptance of the Inheritance
Selling an inherited apartment requires that the apartment is legally yours. While it may seem obvious, it is crucial to ensure that your name appears both in the will and in the property registry. To complete the property transfer, it is necessary to Accept the Inheritance, by presenting documents such as the death certificate, certificate of last will, and an authorized copy of the will. Furthermore, it is vital to register the property in the name of the heirs in the property registry. Ignoring this process would hinder the sale of the property.
Acceptance of the inheritance involves submitting a declaration of last will and/or the will before a Notary. The acceptance and distribution of the inheritance are usually done in the same instance. However, it is essential that each heir individually accepts (or renounces) the inheritance before proceeding with the distribution of assets. These procedures are ultimately carried out by a notary, although it is highly advisable to seek the advice of a lawyer beforehand to handle the entire process and avoid complications.
After submitting the inheritance declaration, the Notary will authorize a Public Deed of Acceptance of the Inheritance, which will be simultaneously signed by all heirs and will detail the heirs, the inherited assets, and the date of the inheritance. This deed will also specify how the heirs accept the inheritance and how it is divided among them. All heirs must sign this deed. Once obtained, the Public Deed of Acceptance of the Inheritance, as indicated later, must be settled for Inheritance Tax and the Tax on the Increase in Value of Urban Land, commonly known as Municipal Capital Gains Tax. This will allow the deed to be registered in the Property Registry. From that point on, the heirs will be legally able to sell the property and transfer ownership to the buyers.
It is crucial to highlight that the inherited property must be registered in the Property Registry in the name of all heirs. The notary will provide a land registry extract of the property, where owners, shares, and any associated charges such as mortgages or inheritance taxes can be verified.
Taxes Involved in Inheriting an Apartment:
When you inherit a property, you face costs and expenses beyond the transfer itself. Several taxes must be paid when inheriting an apartment. To sell an inherited apartment, it is necessary to file an inheritance declaration and pay Inheritance and Gift Tax (ISD). This tax varies depending on the autonomous community where the property is located, the relationship between the deceased and the heir, and the value of the inherited estate. From the date of our deceased's death, the owner or owners of the apartment in question have six months to settle the inheritance tax. It is important to obtain updated information from the relevant tax authorities in Catalonia to precisely understand these details.
In addition to ISD, it is necessary to consider the Tax on the Increase in Value of Urban Land, the municipal capital gains tax, which is calculated based on the difference between the value of the property when it was acquired by the deceased and its value at the date of their death.
It is crucial for heirs to be informed about their tax responsibilities before selling the inherited property to avoid difficulties with tax authorities.
Potential Challenges When Selling an Inherited Apartment in Catalonia
Selling an inherited apartment can pose legal and financial challenges that require attention. It is essential to understand these challenges and address them properly:
Existing Mortgage: If the apartment has a mortgage, it is important to consider how to settle the debt before selling. Negotiating a payment agreement with the bank may be a viable option to free up resources and settle the mortgage without selling the property.
Incapacitated Heirs: If an heir is incapacitated, a special process is necessary to ensure that the sale complies with all legal requirements. This includes appointing a legal guardian and fulfilling all corresponding legal obligations.
Minor Heirs: Inheriting an apartment as a minor involves specific legal procedures. Normally, the parents of the minor or, in their absence, a legal guardian must manage the heir's assets until they reach legal age. This process involves decisions about whether to keep or sell the property.
Disagreements Among Heirs: If heirs disagree about the sale, solutions such as co-ownership termination, the sale of the interested parties' share, or ultimately, a public auction, may arise. It is important to explore agreements before resorting to these options.
Legal Changes Regarding Forced Heirs: Until September 3, 2021, certain legal provisions affected non-forced heirs. These regulations have changed, but it is important to understand how they impact inheritances at different times.
Selling an inherited apartment in Catalonia can involve various legal and financial challenges. However, with careful planning and the right guidance, these challenges can be effectively overcome. By understanding the necessary legal steps and the taxes involved, heirs can make informed decisions and achieve a successful sale of the inherited property.
If you are in the position of wanting to sell an inherited apartment in Catalonia and need expert guidance to navigate the legal and tax processes, Eurofincas is here to help. With over 35 years of experience in asset management and property administration, Eurofincas is your trusted ally in all matters related to real estate in the Barcelona metropolitan area.
Our team of highly trained professionals understands the unique challenges that may arise when selling an inherited apartment. We are committed to providing personalized advice and effective solutions to make your experience as smooth as possible.
What Can We Do for You?
We guide you through the legal requirements and steps necessary to sell your inherited apartment.
We provide up-to-date information on the taxes involved in inheriting and selling the property.
We offer strategies to overcome challenges such as existing mortgages, incapacitated or minor heirs, and other potential obstacles.
We advise you on options to resolve disagreements among heirs and maximize the value of your property.
We facilitate the handling of paperwork and documentation, ensuring that everything is in order for a successful sale.
You are not alone in this process. Write to us to help you turn the sale of your inherited apartment into a successful and hassle-free experience!