How does real estate inheritance tax work?
It’s all too common to inherit a property following the death of a family member. If this is your case, you’re probably wondering what inheritance tax is. Don’t worry, we’ll explain everything!
What are inheritance taxes on real estate?
Definition of inheritance tax on real estate
Inheritance tax is a tax applied to the entire estate of a deceased person. These must be paid to the tax authorities and apply to all heirs, whatever the nature of the inheritance.
There are three main components to the costs incurred by the heirs:
- Notary fees
- Real estate attestation
- The act of sharing
Notary fees
The notary in charge of the estate will ask you to pay his fees. They pay him for his involvement throughout the process.
Fees are set by law, and are calculated by applying a rate to the total value of the deceased’s assets.
Real estate attestation
This document, drawn up by the notary in charge of the estate, formalizes the transfer of ownership of the deceased’s property to his or her heirs.
The price of this service is proportional to the value of the property concerned, according to this scale:
- 1.972% for goods valued at €6,500 or less
- 1.085% for a property valued between €6,501 and €17,000
- 0.740% for a property valued between €17,001 and €30,000
- 0.542% for goods worth more than €30,000
The act of sharing
If the property is bequeathed to several people, and they decide to keep it, the notary will have to draw up a deed of division. This document determines the distribution of the property among the heirs. It is also subject to a percentage applied to the value of the property:
- 4.931% for an item worth €6,500 or less
- 2.034% for a property valued between €6,501 and €17,000
- 1.356% for a property valued between €17,001 and €60,000
- 1.017% for a property worth more than €60,000
However, if the heirs decide to sell the property, it will not be necessary to draw up a deed of partition.
