Can you renounce an inheritance in favour of someone else?

You can, but the law normally treats it as accepting the inheritance and then giving it away. That is why two taxes are paid, the “impuesto de sucesiones” —the Spanish inheritance tax— by the person renouncing and the “impuesto de donaciones” —the Spanish gift tax— by the person receiving. It is only a genuine renunciation if it is made outright, or free of charge in favour of all those who would have received that share anyway. The share then goes to whoever the will or the law says and tax is paid only once.

Alburquerque Abogados

José Manuel Alburquerque
Inheritance and succession

Renouncing in favour of someone

  • The person renouncing is deemed to accept the inheritance. If there are debts, they are also liable for them with their own assets, unless they draw up an inventory within six months.
  • The person receiving pays gift tax. Between parents and children, in a public deed, it is 5 % to 9 %. Between siblings, considerably more.
  • If there are properties, the “plusvalía municipal”, the municipal capital gains tax, is also paid twice.

Renouncing outright

  • The renunciation is made before a notary, prior to any acceptance. There is no going back.
  • The share of the person renouncing goes to whoever the will provides for that case, to the other heirs or, failing that, to whoever the law applicable to the estate says.
  • Those who receive it pay inheritance tax as heirs of the deceased. If the person renouncing would have had a higher multiplier, as a more distant relative, theirs applies.

If the will or the law gives the share to the person intended, renouncing outright is the cheapest option. If not, renouncing in favour of someone costs the same as accepting and making a gift in a public deed.

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.