How to value properties for inheritance purposes in Spain, calculation of the minimum tax value of a real estate property.

How to value properties for inheritance purposes in Spain, calculation of the minimum tax value of a real estate property.

Consultation:

 Recently my husband passed away. We own 50% of an apartment in Javea, where we lived for years. We are tax residents in Spain, and I have to value the property for the inheritance.  I’m not sure what the value is since the real estate market has fallen. How should I calculate it ?

Dear Madam, Thank you for your enquiry.

 First of all, to avoid problems in the valuation of the estate assets, taxes, bank accounts being frozen, etc., we recommend you first seek the advice of a Spanish Lawyer experienced in successions.

 When signing an inheritance deed in Spain you will have to make an inventory and valuation of the assets of the deceased, which in this case means half of the property. You will need to state the current value of the property, this is a statement to be made by you, you do not need to justify it with a valuation.  However, this value given by you may be reviewed by the tax authority, if they believe that it does not conform to the real value of the property it could bring corresponding penalties, interest, etc.,

You can calculate and obtain the current value on the website of the Generalitat Valenciana.

since Javea is within the Valencian Community.  There are coefficients provided which must be multiplied against the cadastral value of the property. The result, which is known as the “real or actual value”, of the property for tax purposes, is also the minimum fiscal value.

 This “real value” is a sort of minimum acceptable value established by the administration, so in principle, this value would be accepted. If a value lower than “real value” is given, it is very possible that the taxman will contact you, from the correspondent Liquidation Office ( Oficina Liquidadora).

This real value cannot be used for all properties, the taxman excludes from this calculation:  rural land, vacant land, industrial buildings, buildings in ruins, Chalets or villas, etc.

 This value may also be inappropriate if the property is in very poor condition.  It is vitally important, in the event of deciding to set a value below the “real value” given by the tax administration, that you document and keep all evidences of the value to support your reasons, keeping photographs of the condition of the property, and all invoices relating to the required renovation, etc.

 If you are the beneficiary of an estate, or want to prepare your succession prepared to avoid problems to your family, , contact ouroffice andwe will help.

The information provided in this article is not intended to be legal advice, but merely conveys general information related to legal issues.

Carlos Baos (Lawyer)

Spanish Law firm solicitor attorney barrister.

Alicante, Denia, Costa Blanca Marina Alta

White & Baos 2014 – All rights reserved

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