Selling an inherited property has pitfalls that don't exist in a normal sale: tax deadlines, decisions made in haste and several owners voicing opinions at once. These are the mistakes when selling an inherited home that cost the most money —and how to avoid them.
Mistake 1: putting it on the market before the inheritance is settled
Without the deed of acceptance and adjudication there can be no sale. Signing a deposit contract “in the meantime” is signing up for penalties if the paperwork drags on. The correct order: adjudicate first (or at least have a notary appointment confirmed), sell afterwards.
Mistake 2: registering the inheritance at too low a value
This is the most expensive mistake. The adjudication value is your purchase price for IRPF purposes: if you inherit for €90,000 “to pay less now” and sell for €150,000, you will be taxed on a €60,000 gain. With the 99% inheritance tax relief in the Valencian Community, adjusting the adjudication value to market rates is almost free and saves thousands later.
Mistake 3: missing the 6-month tax deadlines
Inheritance tax and municipal capital gains tax have a six-month deadline. Missing it means surcharges of 1% per month (up to 15% plus interest after a year) and blocks the registry entry, meaning the sale cannot proceed.
Mistake 4: underselling out of haste or conflict
“Let’s just get rid of it” is the phrase that has burned the most money in inheritances. The difference between selling in a hurry and selling with a method (valuation, preparation, multilingual marketing) is often double-digit percentage points. If the problem is disagreement among heirs, the solution is not lowering the price: it’s an objective valuation to settle the dispute.
Mistake 5: showing it “with everything inside”
Decades of furniture, keepsakes and full wardrobes sink the buyer’s perception. Emptying and cleaning are the investment with the best return in an inherited home; we explain how in our guide to preparing a home for sale.
Mistake 6: forgetting the second municipal capital gains tax and the paperwork
When you sell you will pay municipal capital gains tax again (only for the period since the inheritance) and you will need an energy certificate, up-to-date IBI and a community without debts. With a foreign buyer —the most likely in the area— any missing document delays or kills the deal.
The antidote to all mistakes: start with the real value
Almost all of these failures stem from not knowing how much the property is actually worth. A professional valuation with real local sales orders the adjudication, aligns the heirs and sets a defensible sale price. At Mayrasa we do it for free and with no obligation, and if you decide to sell, we handle the entire process. Better to avoid the mistakes before making them.
What these mistakes really cost
The headline is not an exaggeration: each of these failures has a price, and together they can take a huge chunk of the inheritance. A guide to what’s at stake:
| Mistake | How much it can cost you |
|---|---|
| Understating the adjudication value | Between 19% and 28% IRPF on a gain you invented |
| Missing the 6-month deadline | Rising surcharges up to 15% plus interest, and the sale blocked |
| Underselling out of haste or conflict | Between 10% and 20% below market price |
| Showing it with everything inside | Weeks or months longer on the market and low offers |
| Incomplete paperwork with a foreign buyer | Deal falls through and you start over |
None of these costs is inevitable: almost all are avoided by following the correct order from the start.
The correct order to avoid them
Most mistakes stem from doing things in the wrong order. This is the sequence that avoids nearly all of them:
- Request a objective valuation before making any decision.
- Gather the inheritance documentation (death certificate, certificate of last wills, will, deeds).
- Sign the deed of adjudication at a value adjusted to the market, not artificially low.
- Pay inheritance tax and municipal capital gains tax within six months.
- Register the property in the Land Registry in the names of the heirs.
- Prepare the property: clear out, clean, energy certificate and paperwork up to date.
- Go to market with multilingual marketing and a single point of contact.
Extra mistakes when the buyer is foreign
On the Costa Blanca many buyers are not Spanish, and that adds specific pitfalls not seen elsewhere:
- Not preparing NIEs or powers of attorney when an heir lives abroad, causing the signature to be blocked at the last minute.
- Forgetting the 3% withholding that applies to a non-resident seller and getting a nasty surprise in the distribution.
- Submitting documents without translation or apostille, which slows down the notary and the buyer.
- Advertising only in Spanish and giving up the international buyer, who in many sales in the area is the majority.
Frequently asked questions
Which of these mistakes is the most costly?
Almost always understating the adjudication value. Because with the 99% inheritance relief you hardly pay anything when inheriting, registering at a low value hardly saves you now, but it converts the entire difference up to the sale price into taxable IRPF gain later.
Can an adjudication value already registered be corrected?
It’s complicated and not always worthwhile: it involves a supplementary deed and re-liquidating taxes. That’s why it’s important to set it correctly the first time. If you’ve already signed, consult your case with a gestoría before selling.
Is it worth renovating to avoid underselling?
Rarely a full renovation. What pays off is clearing out, a thorough cleaning, painting and fixing what’s visibly broken. In inherited homes in the area, that basic preparation moves the final price more than any major renovation.
What if I’ve already missed the six-month deadline?
File as soon as possible: surcharges grow with time, so every month counts. In some cases deferral or instalment payment can be requested. What you mustn’t do is let it run on, because without the taxes paid you will not be able to register or sell the property.
An example of what’s at stake
Imagine an apartment inherited in Torrevieja that the market values at €150,000. Two heirs decide to register the adjudication at €90,000 “to pay less.” Because direct family in the Valencian Community benefits from the 99% inheritance relief, that immediate saving is almost zero. A year later they sell for €150,000: the Tax Agency sees a capital gain of €60,000 and claims around €13,000 in IRPF. If they had adjudicated at the real market value, that gain —and that bill— would have been practically nil. It’s the same flat, the same sale price and a difference of thousands of euros that depends only on a figure written in the inheritance deed. That is why the first step, always, is to know how much the property is really worth before signing anything.
