When to pay?

  • Tax must be declared and paid within six months of the opening of the succession (the day of the death). In cases in which the acquisition has conditions attached ( e.g. if the beneficiary gets married) or is limited to a term ( e.g the beneficiary reaches 21) or has any other kind of limitation, the acquisition will come into force on the day that those limitations disappear and consequently the six-month period will be counted from that date.
    ( Be careful when a trust is involved)
  • The mandatory proceeding (for non-residents and for residents of many “Comunidades Autónomas”) is the so called ‘autoliquidación’, which demands the tax  to be paid at the same time as the declaration is done.  This declaration is exclusively online.  As » colaborador social de la  Agencia Tributaria»  we can present it on your behalf.
  • If the time has expired and you haven’t been contacted by the tax administration, you can pay and present the declaration late.Late presentation, without having been required to do so by the Tax Agency, will incur a surcharge of 1% plus 1% more for each complete month late.

    If the presentation without requirement is made after twelve complete months have expired from the due date, the surcharge will be 15% excluding any penalty, but with interest on the arrears. Moratorium interest, will be due from the ending of the previous twelve month period.

    For tax declarations due on inheritances opened before 13th October 2021 ( date of death) a different regime applies: a surcharge must be added of 5%, 10% or 15% depending on whether a three, six or twelve-month period has expired since the end of the initial six-month period. No penalties or interest will be applied in this case.

    If more than twelve months have passed since the end of the initial six-month period, (eighteen months from the death), 20% will be charged with no other penalty applied, but moratory interest will have to be paid from the end of that period (eighteen months) until the full amount has been completely paid off.

  • You can ask for extra time to present your declaration for a new period of six months. However, you must make your application during the first five months from the date of death, accompanying it with the death certificate and a statement of the reason for the delay, the name and details of the beneficiaries, their kinship with the deceased and the approximate value and location of the assets. Interest must be paid on the extended period according to the current, valid legal rate.When the extended time expires, the Tax Administration will provisionally liquidate tax without prejudicing any penalties to be charged.
  • Four years and six months after the opening of the succession, the tax obligation will expire provided that no tax has been paid and provided that no contact has been made between the tax authorities and the beneficiary.However, the inheritance tax form must be completed and presented, in order to withdraw funds or other investments from the bank, or to register the asset in the Land, Naval or Traffic registers, and ultimately to justify acquisition for any other issue ( e.g. residents with assets abroad and therefore completion of form 720 if required)
  • If the initial beneficiary disclaims ( rejects) the inheritance or the bequeathed assets after this period , a new deadline comes into force as now gift tax would be due ( no inheritance tax), to be paid by the person who now benefits from that rejection.
  • If the information relating to a gift or an inheritance results from a deed made before a foreign notary or foreign civil servant, the time to the expiry of the tax obligation by «prescripción» will start from the date the deed is presented to any Spanish Authority.

    Any Questions?

    successions@inheritancespain.com
    Contact us for specific personal advice for your individual case

     

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