Value of the House

Value of the house which has been the habitual residence of the deceased

The following benefits are only applicable for ascendants, descendants, the widow or widower, or kin in the collateral line, older than sixty-five, who have lived with the deceased during the previous two years.

This reduction, is of equal benefit to all inheritors proportional to the share they have in the estate, whether they are going to be the definitive owners or not, unless the house was specifically bequeathed or legated to anyone in the  final will, in which case the reduction affects only the beneficiary.

Ninety-five percent (95%) of the value of the house will be  subtracted from the total amount of the estate on which tax will be paid, but the property must remain within the circle of heirs during a period of 10 years.

It is not necessary to convert what was the habitual residence of the deceased into the habitual residence of the beneficiary; it is sufficient that the value of the residence remains within the circle of the beneficiaries.

If the property is sold, the above mentioned benefit can only remain valid provided that the sale price is immediately reinvested, either in a new habitual residence for the heir or to pay off the mortgage on the property that he or she already owns.

The reduction benefits all the beneficiaries, regardless of who is going to be the future owner, unless the property has been bequeathed to a particular individual in the last will of the deceased.

The habitual residence is the home where the deceased usually lived during the three years prior to the inheritance.

The limit of the  reduction is 122.606,47 € for each tax payer.


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