Losing a loved one is, in itself, a difficult time. Having to manage their inheritance at the same time can become an additional burden that, without the right guidance, causes confusion, family disputes and costly mistakes.
In some cases, the heirs may consider renouncing the inheritance if the debts exceed the inherited assets.
However, understanding how the inheritance process works in Spain —who inherits, what deadlines there are, what taxes are paid and what documents are needed— makes an enormous difference. An orderly process protects the estate and avoids problems that can last for years.
In this article we explain everything essential about inheritances in a clear and practical way. If, after reading it, you have doubts about your specific case, at BBM Abogados we have been helping families in Santander and Cantabria resolve this kind of situation for more than 30 years.
What an inheritance is and how the process works in Spain
An inheritance is the transfer of the estate of a deceased person —their assets, rights and also their debts— to their heirs. In Spain, this process is governed by the Civil Code and, in some autonomous communities, by their own regional law (derecho foral).
When someone dies, what is known as the succession opens, and from that moment the heirs must follow a series of steps to receive and formalise the assets.
Basic steps to process an inheritance
1. Obtain the death certificate and the certificate of last wills, which indicates whether the person left a will.
2. Locate the will (if there is one) at the notary’s office where it was granted.
3. Draw up the inventory of assets and debts of the deceased.
4. Sign the deed of acceptance and allocation of the inheritance before a notary.
5. Settle the corresponding taxes, mainly Inheritance and Gift Tax.
6. Register the assets in the relevant registries (Land Registry, vehicle registry, banks, etc.).
The deadline to file Inheritance Tax is 6 months from the death, which can be extended by a further 6 months upon request. Failing to meet this deadline entails surcharges and interest.
The 3 types of inheritance you should know
Not all inheritances work the same way. Depending on how the assets are transferred and the role played by the deceased’s wishes, we can distinguish three main types.
1. Testate inheritance
This is one in which the deceased left a valid will. In the will, the person expresses their wishes on how to distribute their assets, although always within the limits set by law (respecting the reserved share (legítima) of the forced heirs).
Having a will greatly simplifies the process and reduces disputes between heirs.
2. Intestate or ab intestato inheritance
This occurs when the deceased left no will, when the will is declared void or when the named heirs cannot or do not want to accept the inheritance.
In this case, it is the law that determines the order of the heirs, following the system of legal calling established by the Civil Code.
3. Inheritance during one’s lifetime or gift
Although technically it is not an inheritance, many families choose to transfer assets during their lifetime through gifts. This formula has different tax implications and can be an interesting estate-planning strategy, although it requires specialist advice to avoid surprises.
Who inherits and in what order: the line of succession
When there is no will —or when it does not cover all the assets— the legal order of succession comes into play. Understanding it is essential to know who is entitled to what.
The order of heirs under the Civil Code
The Civil Code establishes the following order of preference:
- Descendants: children and, failing that, grandchildren. They are the priority heirs.
- Ascendants: parents and, failing that, grandparents.
- The surviving spouse: does not take first place, but is entitled to the usufruct of the reserved share (legítima) when concurring with children.
- Collaterals: siblings, nephews, nieces and other relatives up to the fourth degree.
- The State: if there is no legal or testamentary heir, the assets pass to the State.
The reserved share (legítima): what the law always sets aside
Even with a will, there is a part of the inheritance that the law compulsorily reserves for the forced heirs (children, parents and spouse). This part is called the legítima and the testator cannot ignore it.
In Spain, children are entitled to two thirds of the inheritance as their reserved share (although one of those thirds can be distributed freely among them). The remaining third, called the third of free disposal, can be left to whomever the testator wishes.
Taxes on inheritances: how much is paid and how to reduce it
One of the aspects that worries heirs most is the tax burden. In Spain, receiving an inheritance may entail the payment of several taxes.
Inheritance and Gift Tax
This is the main tax. Its administration falls to the autonomous communities, so the amount to be paid varies considerably depending on where the deceased resided.
In Cantabria, heirs in Group I and II (descendants, ascendants and spouse) benefit from significant reductions and allowances that can substantially reduce the tax bill. It is essential to know the deductions applicable in each case.
Municipal capital gains tax (IIVTNU)
If the inherited assets include an urban property, the heir who receives it must settle the municipal capital gains tax at the town hall where the property is located, within 6 months of the death.
The deceased’s Income Tax (IRPF)
The heirs must also file the deceased’s income tax return for the year of death, for the period elapsed up to their passing.
Key tip: good prior planning —through a will, life insurance, strategic gifts or matrimonial property agreements— can considerably reduce the tax burden of the inheritance. A specialist lawyer can advise you on the most suitable options for your situation.
“At BBM Abogados we defend the interests of individuals and businesses in Santander and Cantabria with a close, rigorous and fully transparent approach. If you have doubts about your case, we help you see it clearly.”
How an inheritance that includes a home is divided
The property is usually the most valuable asset —and the one that causes the most disputes— within an inheritance. Knowing how it is handled is essential.
When several heirs receive a house in inheritance, it comes to be held in co-ownership (proindiviso), that is, in joint ownership. Each heir has a proportional share of the property, but none is the sole owner of any specific part.
Options for resolving the co-ownership
– Sell the home and share out the money according to each heir’s share. This is the simplest option when there is agreement.
– Allocate the property to one of the heirs, who financially compensates the rest for the value of their shares.
– Shared or rotating use, although in practice this solution tends to generate tensions over time.
– Action for the division of the common asset, which is the judicial route when there is no agreement between co-owners.
If the heirs do not reach an agreement, any of them can apply to the court for the division and forced sale of the asset. The ideal is always to reach an out-of-court agreement, which is quicker and less costly.
Inheritances in Santander: local handling with expert backing
If you are in Santander or in any municipality of Cantabria and you have to manage an inheritance, it is important to have professionals who know both the regional regulations and the local reality.
In Cantabria the common regulations of the Civil Code apply, with no regional law of its own, but the autonomous regulation of Inheritance Tax does offer relevant particularities that can significantly influence what each heir ends up paying.
At BBM Abogados, with an office in Santander and more than 30 years of experience, we help our clients to:
– Process the inheritance from start to finish, with all its documents and formalities.
– Optimise the tax burden by applying all the reductions and allowances available in Cantabria.
– Mediate and resolve disputes between co-heirs before they escalate into court proceedings.
– Plan the transfer of the estate during one’s lifetime to avoid future problems for the family.
We adapt to each situation, whether it is a simple inheritance or a complex estate with properties, companies or accounts abroad.
Frequently asked questions about inheritances
How is an inheritance of a house divided?
When a house forms part of an inheritance and there are several heirs, the property becomes joint ownership (proindiviso). The most common options are: sell the home and share out the money, have one of the heirs keep the asset by financially compensating the rest, or maintain the joint ownership. If there is no agreement, any co-owner can go to court to request the division of the common asset and the forced sale of the property.
What are the 3 types of inheritance?
In Spain we can distinguish three main types: testate inheritance (there is a valid will from the deceased), intestate or ab intestato inheritance (there is no will or it is declared void, and it is the law that determines who inherits) and gifts or inheritance during one’s lifetime (transfer of assets before death, with its own tax and legal implications).
Who inherits first, the spouse or the children?
Under the Spanish Civil Code, children inherit before the spouse as regards the ownership of the assets. However, the surviving spouse is entitled to the usufruct of the third for betterment (tercio de mejora) when concurring with children, which guarantees them the use and enjoyment of a significant part of the inheritance during their lifetime. If there are no descendants, the spouse inherits before the collaterals (siblings, nephews, nieces, etc.).
Who inherits if there is no will?
When there is no will, intestate succession applies. The order is as follows: first the children (and, failing that, the grandchildren); if there are no descendants, the parents and ascendants; next, the surviving spouse; then the siblings and nephews and nieces; and finally other collateral relatives up to the fourth degree. If there is no legal heir, the assets pass to the State. To process an inheritance without a will, it is first necessary to obtain a declaration of ab intestato heirs before a notary.
Conclusion: don’t leave your inheritance to chance
Managing an inheritance involves deadlines, documents, taxes and, in many cases, difficult decisions at an emotionally complicated time. Doing it well protects the family estate and avoids disputes that can last for years.
Whether you need to process a recent inheritance or want to plan yours in good time, **BBM Abogados is by your side**. We have been supporting families in Santander and Cantabria for more than 30 years with professionalism, a personal approach and effectiveness.
Do you have doubts about an inheritance? Get in touch with us today and we will offer you a first consultation to analyse your situation with no obligation. Because managing an inheritance well starts with having the right information and support.