In recent years, the number of taxpayers who want to renounce inheritance due to not being able to pay the deceased's debts, or due to the high tax cost of inheriting the assets that correspond to them, has increased. Whether or not to pay tax will also depend on how and when it is waived.
There are two basic situations in which a potential heir may find himself before the Treasury. On the one hand, it is possible that the Tax Agency declares him the successor of the Taxpayer, and demands the tax obligations that the deceased had pending.
On the other hand, the heir may find himself in a situation in which paying the tax cost of inheriting the assets that correspond to him from the inheritance leaves him in a very precarious economic situation, being forced to sell part of the inherited assets to to be able to pay the tax bill required by the treasury.
To avoid problems with the treasury due to an inheritance, the easiest thing to do is to renounce it and it does not imply the transfer of the right to succeed by the renouncer. In this case, the relatives of the next degree will inherit in their own right, not because the renouncer has transmitted it to them.
On the other hand, the heir could renounce the inheritance, but in favor of others. This is not a waiver, but rather a transfer of rights. Therefore, in this case the renunciant would be taxed as if he had acquired the inheritance, and the beneficiary of the renunciation would be taxed as if he had received a donation.
The renunciation must be made in a public document, this is a key issue to avoid paying taxes on an inheritance.
If you have an inheritance from your father or mother in process, and you want to know if it is worth it to receive the assets, or on the contrary, due to the Inheritance Tax that must be paid, it is not profitable for you to accept the inheritance, and it is better give up, don't hesitate, contact us!
