Value of the house which has been the habitual residence of the deceased
The following benefits are only applicable for ascendants, descendants, the widow or widower, or kin in the collateral line, older than sixty-five, who have lived with the deceased during the previous two years.
This reduction, is of equal benefit to all inheritors proportional to the share they have in the estate, whether they are going to be the definitive owners or not, unless the house was specifically bequeathed or legated to anyone in the final will, in which case the reduction affects only the beneficiary.
Up to 100% of the value of the house (depending on each Comunidad Autónoma´s regulations) may be subtracted from the total amount of the estate on which tax will be paid, but the property must remain within the circle of heirs for a given number of years.
It is not necessary to convert what was the habitual residence of the deceased into the habitual residence of the beneficiary; it is sufficient that the value of the residence remains within the circle of the beneficiaries.
If the property is sold, the above mentioned benefit can only remain valid provided that the sale price is immediately reinvested, either in a new habitual residence for the heir or to pay off the mortgage on the property that he or she already owns.
The reduction benefits all the beneficiaries, regardless of who is going to be the future owner, unless the property has been bequeathed to a particular individual in the last will of the deceased.
The habitual residence is the home where the deceased usually lived during the three years prior to the inheritance.
There are limits on the reduction for each tax payer.
There are some special regulations in each Comunidad Autónoma
In Andalucía: The reduction can reach 99,99% if the house is the habitual residence of the beneficiary.
Since 02/08/2016 the Reduction is as follows, for a net value of the State for each tax payer:
Value (€)
Percentage of reduction
Up to 123.000,00
100%
FROM 123.000,01 TO 152.000
99%
FROM 152.000,01 TO 182.000
98%
FROM 182.000,01 TO 212.000
97%
FROM 212.000,01 TO 242.000
96%
MORE THAN 242.000
95%
The beneficiary must retain ownership for THREE YEARS
In Aragón: The reduction reaches 99% and the time of ownership is reduced to five years. From 1/11/2018 the reduction reaches 100% of the value of the house and the limit of the benefit for each beneficiary is increased to 200.000 €. There is also a new reduction for the acquirers of the house which was the habitual residence of the deceased, whether related or not
In Asturias the reduction can reach 99% depending on the value of the house according to the following scale:
Real value of the house (€)
Percentage of reduction
Up to 90.000,00
99%
From 90.000,01 to 120.000,00
98%
From 120.000,01 to 180.000,00
97%
From 180.000,01 to 240.000,00
96%
More than 240.000,00
95%
Since the first of June 2017: THE TIME TO KEEP THE OWNERSHIP OF THE HOUSE WHICH WAS THE HABITUAL RESIDENCE OF THE DECEASED IS REDUCED FROM TEN TO THREE YEARS.
In Baleares the time of ownership is reduced to five years.
The reduction reaches 100%.
The limit increases to 180.000 €.
In the Canary Islands the time of ownership is reduced to five years.
The reduction reaches 99%.
The limit increases to 200.000 €.
In Cantabria the time of ownership is reduced to five years.
The reduction reaches 99%.
The reduction in the value of the house which was the habitual residence is cut to 95% with a limit of 125.000 for each tax payer.
In Cataluña the time of ownership is reduced to five years.
The reduction reaches 99%.
The limit increases to 180.000 € per tax payer (or 500.000 for the whole reduction).
Real value of the house (€)
Percentage of reduction
Up to 122.000,00
100%
From 122.000,01 to 152.000,00
99%
From 152.000,01 to 182.000,00
98%
From 182.000,01 to 212.000,00
97%
From 212.000,01 to 242.000,00
96%
More than 242.000,00
95%
The percentage of the reduction is 100% I for a house classified with the description “ protección oficial” or if it is under the protection afforded by some other authority, provided that the acquirer was the partner of the deceased, or is either an ascendant or a descendant relative. The limit for the obligation of ownership is five years in this case.
In Galicia the time of ownership is reduced to five years.
The reduction reaches 100% for the widow, widower or unmarried couple inscribed in the Comunidad Autónoma’s Registry).
The limit increases to 600.000 €.
And the percentage of the reduction increases in accordance with the following scale:
Real value of the house (€)
Percentage of reduction
Up to 150.000,00
99%
From 150.000,01 to 300.000,00
97%
More than 300.000,00
95%
This reduction will be applied in Galicia even if the deceased hasn’t lived at the house the required length of time provided that his or her physical or psychological condition was the reason for not having lived there and provided that he or she had been living in a specialised centre or with someone within the circle of beneficiaries. (1.1.2016)
In La Rioja the time of ownership is reduced to five years.
In Madrid the time of ownership is reduced to five years.
The reduction reaches 95%.
The limit increases to 123.000 €.
In Valencia the time of ownership is reduced to five years.
The reduction reaches 95%.
The limit increases to 150.000 €.
In Bizkaia the time of ownership is reduced to five years.
The reduction reaches 95%.
The limit increases to 215.000 € if the deceased and the beneficiary (tax payer) had lived together in the house during the two previous years.
The reduction reaches 95%.And applies to any beneficiary who has lived with the deceased during the two years previous to the date of death.
The limit increases to 220.000 € and it is not necessary for the deceased and the beneficiary to have been related.
In Álava the time of ownership is reduced to five years.
The reduction reaches 95%.
The limit increases to 212.242 € and it is not necessary for the deceased and the beneficiary to have been related.
