How long can a property stay in a deceased person's name?

Question

José Manuel Alburquerque · Accepted Answer

There is no maximum period. The law does not require the name to be changed at the “Registro de la Propiedad”, the Land Registry. But a return for the “impuesto de sucesiones”, the Spanish inheritance tax, must be filed within six months of the death, as must one for the “plusvalía municipal”, the municipal capital gains tax. To sell or mortgage the property, the inheritance must also be accepted first. The prudent course is to sign the inheritance deed within those six months. What cannot wait Inheritance tax. Six months from the death. The extension for a further six months must be requested within the first five months and interest is payable. After the deadline, surcharges apply. Municipal capital gains tax. The same six-month time limit, which can be extended to up to one year if requested within those six months. The “IBI”, Spain's local property tax. It continues to be charged every year and is paid by the heirs, even if the bill arrives in the deceased's name. What happens if nothing is done If there are several heirs, the property belongs to all of them in common. Any of them can ask at any time for it to be divided, unless the will or an agreement between them prevents this. Any interested party can ask a notary to require the heir to make up their mind. Under Catalan law, if the heir does not accept before a notary within two months, as a general rule they are deemed to have renounced. Under the Spanish Civil Code (“Código Civil”), if the heir does not reply within thirty days, they are deemed to have accepted. The property cannot be sold or mortgaged without first accepting the inheritance. Both can be signed on the same day before the same notary. Over the years everything becomes more complicated, especially if one of the heirs dies and their own heirs come into the picture. How the name is changed The inheritance deed is registered at the Land Registry once the tax returns have been filed. The notary and the land registrar notify the “Catastro” —the property cadastre— and the IBI passes into the heirs' names the following year.