It’s the first question in any inheritance involving a house: how much will I pay? The short answer for most families is: much less than you fear. We explain how inheritance tax in the Valencian Community works when you inherit a home, with the current deductions and the deadlines you mustn’t miss.
Who pays and where it’s paid
Each heir pays tax on what they receive, and the rules of the autonomous community where the deceased had their habitual residence apply. If the deceased lived in Torrevieja, Orihuela or any Valencian municipality, the rules of the Comunitat Valenciana apply, currently one of the most favourable in Spain.
The 99% deduction for close family
At present, in the Comunitat Valenciana the spouse, children (and descendants) and parents (and ascendants) benefit from a 99% deduction of the tax due. In practice: in a typical family inheritance of a home, you pay 1% of what would be due without the deduction, in addition to the general reductions for kinship. Siblings, nephews and non-relatives are not covered by this deduction and do face significant tax bills.
Extra reduction for the main residence
If the house was the deceased’s main residence, direct heirs can also apply a 95% reduction of its value (with a per‑heir limit), provided they keep the property for the legally required period. Be careful with this requirement if the plan is to sell soon: it’s worth calculating which option is more advantageous before signing.
On what value the tax is calculated
Since 2022, the tax base is at least the cadastral reference value of the property, which you can consult at the Cadastre’s portal. It can be challenged if it exceeds the real value, but the practical route is almost always to document market value well with a professional valuation.
Deadlines: the 6 months that matter
The tax must be filed within 6 months of the death. An extension of another 6 months can be requested, but only within the first 5 months. Missing the deadline incurs escalating surcharges, and failing to prove the tax settlement blocks the land registry entry and, with it, any sale.
What if the heir does not reside in Spain?
Non‑resident heirs submit the tax to the national Tax Agency, but are entitled to apply the relevant regional rules (the Valencian rules, if the deceased resided here or the main assets are here, depending on the case). In other words: the 99% deduction also applies to a child living in France or Germany.
Don’t forget the municipal capital gains tax
Besides inheritance tax, the town hall levies the municipal capital gains tax (plusvalía) on the inherited property, also within 6 months. They are two different taxes with the same clock.
At Mayrasa we handle inheritances involving property every week: we guide you through the steps, connect you with the right professionals through our real estate advisory, and if the plan is to sell, we take care of the entire sale. Contact us without obligation.
