Much has been said in recent months about the taxes that must be paid at the time of being a beneficiary of an inheritance and, therefore, how this inheritance declaration affects the Income. However, not many people really know all the requirements that must be met in this circumstance. Therefore, this article will explain how the amounts and assets received after accepting an inheritance have to be declared.

The declaration of inheritance generates more than one headache for those people who are heirs after the death of a family member or someone from their close environment, and which sometimes makes them value their resignation, even in cases of legitimate inheritance.

What should be taxed for inheritance taxes?

In the first place, it should be made clear that all inherited amounts and assets are not taxed in the Personal Income Tax,that is, not all of them must be incorporated into the income statement that we present each year to the Tax Agency.

The main reason is that, although we have obtained a certain income thanks to an inheritance of cash or we have increased our patrimony by receiving certain assets, in the case of inheritances there is a specific tax: the Inheritance and Gift Tax.

This tax must be presented when accepting an inheritance within 6 months from the time of the death of the person and is applied directly on all assets that are inherited.

The amount that definitely has to be paid in the declaration of the inheritance will logically depend on the amounts and assets received and the legislation that applies at all times, both national and regional.

Once this tax has been paid, in the event that there is real estate on urban land in the inheritance,must also be paid, to the municipalities in this case, the surplus value of inheritance,whose purpose is to tax the increase in the value of the property from the moment it was purchased by the deceased and the date on which it is inherited.

Therefore, once this tax has been paid, it can be said that I do not have to declare in the income what I have inherited,so I will not have to pay more Personal Income Tax.

However, this does not mean that receiving an inheritance does not affect in any case the income statement, since of course it does affect in certain circumstances.

At this point, you have to know how to differentiate 2 things that are totally different:

  • The amounts and assets that are inherited directly,taxed in the Inheritance and Gift Tax.
  • The income generated by the amounts and assets inherited.

Income Statement: How an inheritance is taxed

As introduced above, the question that everyone is asking is this:‘how does inheritance affect my income’.

In a simple way and preceding the subsequent explanation, it can be said that in the Income Statement we must pay taxes for everything we have gained (or lost) thanks to the assets received in the inheritance.

Simply, the following aspects must be incorporated into the Income Tax Return:

  • The interest generated by the money inherited since it is in your current account, treating them in this case as movable capital.
  • The dividends obtained after receiving in the inheritance shares of some entity,always taking into account that the first 1,500 euros of dividend are always exempt in the IRPF, at least until the regulations change this aspect.
  • Likewise, I will have to declare in the Personal Income Tax the capital gains or losses that I obtain as a result of the previous actions.

On the other hand, the inheritance of a flat is taxed on the IRPFen certain occasions. In the event that part of the inheritance is the total or partial ownership of a property, or the usufruct of the same, real estate income must be incorporated into the personal income tax return provided that said property does not constitute the habitual residence.

The amounts received as rent if the property was rented, or the capital gains if it was sold, must also be declared, if applicable.

However, in the event that it has not been put in Rent the inherited property,must be taxed in the IRPF for the same due to the imputation of real estate income, one of the components of the income of any taxpayer along with: income from work, income from capital and economic activities, as well as capital gains and losses.

Taking into account everything that has been commented on in the article, the recommendation is always
have experts
in the field who know how to perfectly identify the concepts to be included in each of the taxes that must be paid after receiving the inheritance, thus ensuring compliance with the regulations and avoiding future sanctions.