How much does it cost to take over your siblings' share of an inherited flat?

It depends on when it is done. If it is done when the estate is divided and the siblings are paid in money, there is normally no further tax to pay, because a flat can almost never be divided. If it is done later, stamp duty (“impuesto de actos jurídicos documentados”) is paid on the share acquired. If the siblings are not paid anything, it is treated as a gift between them, which works out much more expensive.

Alburquerque Abogados

José Manuel Alburquerque
Inheritance and succession

When the estate is divided

  • Each sibling pays the “impuesto de sucesiones”, the Spanish inheritance tax, on their share of the estate, even if one of them keeps the flat.
  • If the flat cannot be divided and the sibling who keeps it pays the others in money, that excess does not attract transfer tax (“impuesto de transmisiones”). Nor does the deed attract stamp duty.
  • If the flat can in fact be divided, for example because it was two flats joined together, the excess attracts transfer tax, normally 10 %.
  • If the others are not compensated, the sibling who keeps the flat is taxed as if their siblings had given them their share.

After the inheritance

  • If later on one of them keeps it all and pays all the others, stamp duty is paid on the value of the share they acquire. In Catalonia it is 1,5 %.
  • If only one of them leaves and the others remain owners, transfer tax is paid on the share being bought.
  • The siblings who are paid may have to declare a capital gain in their income tax return if the flat has gone up in value since they inherited it.

Where transfer tax or gift tax is paid, there may also be municipal capital gains tax. If the flat cannot be divided and the others are compensated in money, there is none.

For example, three siblings inherit a flat worth 300.000 euros. If, when the estate is settled, one of them keeps it and pays 100.000 to each of the other two, each sibling pays inheritance tax on their 100.000 euros and there are no further taxes. If they do it years later at the same value, the sibling who keeps the flat pays around 3.000 euros on the 200.000 they acquire. Notary and registry fees come on top of that.

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.