Taxes that you will have to deal with when inheriting a home in Moraira: Inheritance Tax and Municipal Capital Gains Tax.
Inheriting a home in Moraira can prove to be like poisoned candy if we consider the taxes that we have to pay in order to obtain the property. Specifically, and in terms of Inheritance and Gift Tax, in the Valencian Region, taxpayers who inherit property from their parents are forced to pay up to 14 times more than someone in the same situation in other regions such as Madrid, Murcia, Extremadura or La Rioja.
Taxes on inheritance in Moraira
However, Inheritance Tax is not the only tax that comes into play when inheriting property. Below we take a look at the taxes that have to be paid when inheriting a home in Moraira.
Inheritance Tax
As we have already mentioned, Inheritance Tax is one of the taxes that have the most to do with the amount we will end up paying for our inherited property in Moraira. As it is a tax regulated by the Autonomous Regions, each one establishes the tax rate it deems appropriate, which is why there can be such a difference between what you end up paying in one place or another.
Furthermore, Inheritance Tax is a progressive tax, i.e. the greater the value of the inherited assets, the more you will end up paying.
It should be noted that there are reductions and allowances that can lessen the amount to be paid. We are referring to reductions for direct heirs, reductions for the inheritance of the main residence, etc.
At Hispania Homes, we have prepared a Questions and Answers document on Inheritance Tax in the Valencian Region, a PDF in which you can find the different reductions and allowances that the region establishes for this tax, its calculation method and much more information that will surely be useful if you have just inherited a property.
Inheritance Tax in the Valencian Region
Frequently Asked Questions
We provide answers to the most frequently asked questions regarding the inheritance of homes in this region
Municipal Capital Gains Tax
Another tax that must be paid when inheriting a house in Moraira is the Municipal Capital Gains Tax (Plusvalia Municipal), a tax levied by the town councils on the increase in value of properties from the moment they are acquired until they are passed on, whether by sale, inheritance or donation.
In the case of inheritances, the heir is the person who has to pay this tax. They have six months from the death of the deceased to do so, and an additional extension of up to six months can be arranged.
As with inheritance tax, local councils also offer reductions and allowances to lessen the amount to be paid.
To find out how much you will have to pay in Municipal Capital Gains Tax on your property, you can download our Municipal Capital Gains Tax calculator for the municipalities of Moraira-Teulada, Benissa and Jávea. It is an Excel template that you can download and fill in the details of your transaction, and it will automatically calculate the tax you will have to pay.
<< Download Municipal Capital Gains Tax Calculator >>
Income Tax
Inheriting a property does not require you to pay income tax on it unless you decide to sell or rent it and obtain a capital gain from the transaction. The profits obtained from an inherited property must be included in the following year’s Income Tax Return Campaign.
Management of inherited properties in Moraira
Inheritances are often complicated procedures that we are not used to dealing with. Moreover, this type of operation becomes more complicated if the inheritance is to be divided among several heirs and includes properties that are difficult to split up unless they are sold or rented.
If you’ve inherited a property anywhere on the Costa Blanca, especially in Moraira, Benissa or Jávea, and you would like to have professionals to help you handle the paperwork for your new property and its future marketing, Hispania Homes has a multidisciplinary team specialising in this area that will help you get the most out of your property.
