Inheriting a property is not a “gift” as is often thought, but it can become a “poisoned gift” due to the debts and burdens of the inheritance. Accepting an inheritance means paying taxes such as municipal capital gains or inheritance tax, but, in addition, in the case of an apartment, maintenance costs and taxes such as IBI must be assumed. In these cases, several doubts arise: is it possible to sell an inherited apartment before 5 years? What steps must be followed? What happens if a co-heir does not want to sell? In this article we answer all these questions.
According to data published by the General Council of Notaries, almost 55,500 people renounced their inheritance in 2022 in Spain, which represents an annual volume of 15.6%. The main causes of resignations are usually the debts left by the deceased, which sometimes exceed the assets, and the tax burdens posed by the inheritance.
In certain cases, one of the ways to avoid debts from an inheritance of an apartment is to sell it. Let’s see below whether or not it should be done within a certain period.
Can I sell an inherited apartment before 5 years?
For a long time, it took 5 years to sell an inherited apartment (later the period was reduced to 2 years) if you were not a forced heir due to the regulation of article 28 of the Mortgage Law. However, article 28 of the LH was repealed by Law 8/2021 and became ineffective as of September 3 of that year.
Therefore, it is possible to sell an inherited apartment within 5 years.
Aspects to consider when selling an inherited apartment
If you want to sell an inherited apartment, it is important that you consider several important aspects:
– It is advisable that you sell the inherited apartment in the same fiscal year in which you received the inheritance since that way you will avoid paying the capital gain both when inheriting and when selling. We must remember that the municipal capital gain is calculated based on the increase in the value of the apartment during a certain period of years. If you sell the inherited house in the same tax period, a greater value of the property will not be generated, so you will not have to pay the capital gain again.
– If you are the only heir of the apartment, it will be easier to make the sale.
– In the case where several heirs receive the apartment (for example, several brothers who inherit from their father), several things can happen:
– That the co-heirs agree to sell. This is the simplest case.
– That any of the co-heirs do not want to sell. It may happen that this co-heir purchases the percentages of the rest and becomes the sole owner.
Steps to sell an inherited apartment
It is important that you know that the fact that you are named heir to an apartment in a will does not make you the owner of that apartment, but rather that you must carry out a series of procedures so that the apartment is registered in your name in the Property Registry and you can sell it. The steps to follow to sell an inherited apartment are the following:
Request the death certificate
You must request it at the Civil Registry of the town where the person leaving the inheritance died. You can do it in person or online.
Request the certificate of last wills
You will have to do it in the Registry of Last Will Acts. It is a free certificate that can be requested on the Ministry of Justice website.
Request the will from the Notary
The Notary who executed the will will appear on the certificate of last wills. If that Notary has died, you must go to the person who inherited his or her protocols and, if not, to the General Registry of Protocols and request a copy.
Accept the inheritance
Several cases can occur:
– Only one heir. If you are the only heir, you must make an inventory of the assets and debts of the inheritance and prepare the application for sole heir with a lawyer or a Notary. Subsequently, the Notary will prepare a document accepting the inheritance and sign it.
– Several heirs. In the event that there are several heirs, a deed of division of the inheritance must be prepared by the notary, which will include a list of the assets and debts of the inheritance with their valuation and distribution among the co-heirs.
– Inheritance without will. In this case, a document declaring heirs is prepared by the Notary and the order of heirs established by law is followed.
Pay the corresponding taxes
You will have to pay the Inheritance Tax, remember that it is transferred to the Autonomous Communities so the amount to pay may vary from one place to another, the municipal capital gain if properties are inherited and the Income Tax (IRPF) if you obtain a profit assets in case of sale.
Register the inheritance of the apartment in the Property Registry
In order for the inherited apartment to appear in your name, you must register the inheritance in the Property Registry in which you will be asked to:
– Copy of the ID of the deceased person.
– Copy of your ID and that of all heirs.
– Death certificate.
– Certificate of last wills.
– Life insurance certificate if there is one.
– Deed of acceptance of inheritance.
– Proof of payment of inheritance tax and capital gains, or document proving the deferral request.
Start the sales process
Once the apartment appears in the name of the heirs in the Property Registry, the apartment can be sold. To make the process easier, you can hire the services of a team of expert real estate advisors like Proddigia who will help you:
– Price. Set a sales price according to the market that implies a quick sale and in good economic conditions.
– Preparation of the apartment for sale. Fix the inherited apartment so that it gives the best image to buyers. You can hire Proddigia’s Home Staging service, which is free and will allow you to increase the value of your property and sell faster.
– Visits. Conduct visits to the property with really interested buyers.
– Negotiation. Negotiate the price and the rest of the aspects of the sale to close it in the best conditions for you.
Formalization of the sale
The last step will consist of formalizing and signing the public deed of sale and registering it in the Property Registry in favor of the buyers. As you have seen, therefore, an inherited apartment can be sold within 5 years without limitation due to the repeal in 2021 of article 28 of the Mortgage Law. You must consider the debts of the inheritance and the tax aspects of it before accepting it and selling and, if you finally acquire the inherited apartment, you can put yourself in the hands of a real estate consultancy so that the sale is carried out under optimal conditions and you achieve your objectives. .
Can I sell my share of an inherited house?
