Can inheritance tax be paid with money from the estate?

Yes. The heirs can ask the bank to pay the tax out of the balance of the deceased's accounts, even if they are frozen. The bank does not file the tax return. It just pays the tax by cheque made out to the “Agència Tributària de Catalunya”, the Catalan tax authority. If there is not enough money, a deferral or payment in instalments can be requested before the end of the period for filing the return, which is six months from the death.

Alburquerque Abogados

José Manuel Alburquerque
Inheritance and succession

Using the money in the deceased's accounts

  • You apply at the bank itself, with the tax return already prepared, which shows how much has to be paid. The bank usually also asks for the death certificate, the certificate of last wills from the “Registro General de Actos de Última Voluntad” and the will or the declaration of heirs.
  • The cheque is made out to the tax authority and can only be used to pay the tax. The heirs do not receive that money.
  • If the balance is not enough, shares or other securities belonging to the deceased can be sold to make up the payment.
  • The tax can also be paid by the lawyer or “gestor” (administrative agent) who files the return, using the money in the deceased's account, if he or she has an agreement with the tax authority.

If there is not enough money

  • You can ask the tax authority for a deferral of up to two years or for payment in up to five annual instalments, always before the period ends. Interest is charged and, in most cases, no security has to be provided.
  • While the deferral lasts, the bank can hold back the money for the tax in the account.
  • In the first five months, you can apply for an extension of a further six. This gives more time to raise the money, although interest is also charged.
  • You can also ask to pay with a property from the estate, but the tax authority is not obliged to accept.

Selling a flat from the estate to pay the tax usually takes more than six months. That is why, in that case, you must apply for the extension or the deferral in time.

This answer is provided for educational purposes and offers initial guidance on the question raised. Every matter has its own circumstances and nuances that require individual assessment. For that reason, before taking decisions with significant consequences, it is advisable to consult a professional and not to rely solely on this information. Personalised advice makes it possible to apply these explanations to the specific case and to assess the options available with greater certainty.