Inheriting a property in Spain can represent both an opportunity and a significant life step. Whether you're looking to release equity, simplify family assets or bring closure to a chapter, selling an inherited home requires careful planning. Here's everything you need to know.
1. Accepting the inheritance
Before the property can be sold, the inheritance must be formally accepted. This involves:
Obtaining the death certificate
Requesting the Certificate of Last Wills
Securing a copy of the will (or initiating inheritance proceedings if there is no will)
Signing the Deed of Acceptance of Inheritance before a notary
Settling the Inheritance and Gift Tax
Registering the new ownership in the Land Registry (Registro de la Propiedad)
Until the title is officially updated, the property is still legally registered under the deceased’s name and cannot be sold.
2. Paying inheritance tax
This tax is paid individually by each heir and the rate varies depending on the autonomous region, the value of the property, and the heir’s relationship to the deceased.
Regions such as Madrid and Andalusia offer generous allowances for direct family members (up to 99% reduction).
The tax must be paid within six months from the date of death, although it’s possible to request an extension.
Proof of payment is required in order to register the property in the heir's name.
We recommend working with a tax advisor or gestor to avoid errors and late payment penalties.
3. Updating the land registry
Once the inheritance has been accepted and taxes paid, the property’s ownership must be updated in the Land Registry. This step is essential for the sale to proceed legally.
4. Coordinating between heirs (if applicable)
If multiple heirs are involved, they must all agree to sell the property. If there’s disagreement, a formal division of inheritance may be required—either through a private agreement or legal mediation.
Tip: Confirm early whether all heirs wish to sell, or if one prefers to retain the property, to avoid delays later.
5. Reviewing the legal status of the property
Before putting the home on the market, it’s advisable to:
Verify the cadastral data (surface area, land use, boundaries)
Check for any outstanding debts or encumbrances (mortgages, unpaid IBI/taxes, community fees)
Confirm the home is legally habitable — it may require an updated habitability certificate or energy performance certificate
6. Valuation and preparing the property for sale
Inherited homes are often vacant or in need of updates. We recommend:
Obtaining a professional valuation, based on current market data
Making minor upgrades or home staging to improve market appeal
Preparing the full documentation to ensure a transparent sale, including:
Updated nota simple
Title deeds
Energy certificate
Cadastral records
ID/passport copies for all sellers
7. Taxes When Selling: Plusvalía and Capital Gains
When you sell the property, two taxes may apply:
Municipal Plusvalía Tax: A local tax on the increase in land value since the last transfer. This is typically paid by the seller.
Capital Gains Tax (IRPF): Based on the difference between the value declared in the inheritance and the actual sale price.
If the property is sold shortly after inheritance and the values are similar, the gain—and therefore the tax—may be minimal or even exempt.
A fiscal advisor can guide you on possible deductions, tax deferrals, or reinvestment options.
8. Working with a trusted agency like Lucas Fox
Selling an inherited home involves legal, fiscal, and emotional complexity. A professional agency will support you through the entire process by:
Accurately valuing and positioning the property on the market
Reviewing all documentation
Attracting qualified national and international buyers
Negotiating, coordinating with notaries, and managing any issues that may arise
