Receiving a house as an inheritance can represent a significant financial boost for many businesses and individuals. It is an increase in assets that, with the right guidance, can be optimized to improve financial stability.

If you are considering selling an inherited house, it is important to be well-informed and make informed decisions. In this article, I will provide you with advice and guidance to address this process effectively.

The challenges of selling an inherited house depend on several factors:

• The number of heirs who share the house.
• The good harmony and communication among the different heirs.
• The condition of the house itself.
• Where it is located and the selling options the area may have.

However, you should know that, although receiving an inherited house will increase your assets, in the short term it may involve some initial financial expenses.

The process of selling an inherited house

The phases of the process of selling an inherited house are several, all of them very specific and parameterized.

First: gather the documentation

As you can see, there are two moments when you will have to pay taxes, one at the time of receiving the inheritance and the other at the time of selling it. They are two independent and isolated events, both of which generate tax obligations.

When receiving an inheritance, several documents must be gathered. Basically, it is all the documentation to prove the death, demonstrate that you are the legal heir, and have the record of the assets inherited.

For this, the following will be necessary:

• Certificate of death of the deceased. Which is requested from the Civil Registry of the locality.
• Certificate of last wills. With this, it is known if the deceased person left a will or not. It is requested from the Ministry of Justice and can be done online.
• Copy of the will if it exists. It must be requested from the notary where the deceased made it and will appear in the Certificate of last wills.

Second: accept the inheritance

This is a procedure that must be carried out before a notary and is the first step. There is the peculiarity that the inheritance is accepted as a whole. That is, if you accept the inheritance, you assume both the inherited assets and economic amounts, as well as possible debts and associated charges.

This procedure is also complicated if there are multiple heirs and communication is not fluid.

The question of accepting the inheritance also depends on whether there is a will or not. If the deceased person wrote everything down, it is easier since it will be clear who gets each inherited asset.

Of course, it is also easier if there is a single heir.

In any case, an initial inventory of all the assets included in the inheritance and also of the associated debts must always be made.

Subsequently, proceed to the partition among the different heirs and sign before a notary the deed of partition of the inheritance.

In inheritances where there is no will, a declaration of heirs must be signed before a notary. This document certifies clearly which people are entitled to receive part of the inheritance and in what percentage.

Third: appropriate distribution of the inheritance in the case of multiple heirs

If the inheritance is shared with more heirs, things can get complicated. Especially if there is no communication or clash of interests. In addition, it may happen that the only valuable inherited asset is a single house.

Why is this a problem? Imagine that two siblings inherit and the inheritance consists of two houses, the solution seems easy, one house is put in the name of each sibling and each one does what they want with it. If the appraisal price of the two is similar, this can be done without problems or disputes.

But imagine there is only one house and several heirs. It may be the case that some want to sell it to have the money from the sale while other heirs want to keep it and live in it. Although there is the option of reaching a fair agreement for both, the truth is that in most cases the agreement in these situations is complicated by disagreements and disputes over the selling price.

Fourth: settle inheritance taxes

Once the inheritance itself is formalized, inheritance taxes must be paid. In this case, the taxes to be paid are two:

• Inheritance and donations tax.
• Municipal capital gain tax.

This type of tax can vary greatly from one autonomous community to another, so it is advisable to inform yourself beforehand about the amount in each province.

Fifth: register the property

Finally, the property must be registered in your name or in the name of all the heirs in the Property Registry.

Although it is not an obligation per se, it is advisable to register the inherited house in the Property Registry. It is not a cumbersome procedure and will facilitate things in the following phases and avoid possible problems.

Sixth: sell the inherited house

This step is quite easy to understand. Once the property is registered and the taxes from the previous phases are settled, you can put the house up for sale.

Selling it quickly and for a good amount will depend on your skills to advertise it, negotiate the selling price, luck, etc. Obviously, always having a specialist who will facilitate things for you and allow you to worry less about the procedures for selling your inherited house with hardly any time and zero hassle.

Seventh: settle taxes for sale

Once you sell the house by inheritance, you only need to pay taxes again, this time the taxes corresponding to the sale of the house.

Also in this case, they are two just like when receiving the inheritance, and curiously one of them is the same:

• Municipal capital gain tax.
• Income tax (Personal Income Tax).

If the property is in the name of several heirs, each of them will settle their personal taxes in proportion to the ownership of the house.

Regarding the capital gain tax, just like in the previous phase, it will be paid based on the value of the land of the house at the time it becomes your property and the difference with the moment you sell it. That is, if you receive a house by inheritance and sell it shortly afterwards, theoretically the tax to be paid would be very low.

When paying the income tax, the base value of the house is the one indicated in the inheritance and donations tax.