Ways to reduce tax when receiving an inheritance on a house

Inheriting a home can be seen as a blessing or as a burden, depending on the economic situation of the recipient and the condition of the property. Stress can arise when an inherited home comes with debt or the heirs lack the funds to pay inheritance taxes and donations.

Sometimes you inherit a home that is in excellent condition, livable and that can generate passive income. However, it can also happen that you inherit a high value property whose taxes cannot be paid for the beneficiary. In such cases, it is important to be aware of the alternatives available to resolve the situation.

Before proceeding to resolve the problem, it is important to distinguish''the value of the real estate. They also vary depending on the degree of kinship between the parties and the purpose of the property. For residential properties, there is a state law that reduces the tax by 95% for spouses, parents, children and other relatives over the age of 65 who lived with the testator for two years before his death. The value of the home must not exceed €123,000 per heir and the home must be maintained for five years after death.

Another tax to consider is the Land Value Gains Tax, which is levied on heirs or beneficiaries of donations and can range from 10% to 20% of the cadastral value of the dwelling.

Finally, personal income tax (PIT) should be noted; it will not''cause problems for those who inherit residential real estate, but should be taken into account in the case of donations. In the case of donations during the donor's lifetime, the donor must pay an income tax of between 19% and 32% of the gain from the time the property was acquired. However, if the donor is over 65 and the real estate is his or her permanent residence or money is donated, this tax does not apply.

When you receive an inheritance, you can receive it in a variety of ways, including cash. However, in order to receive an inheritance in cash, certain requirements must be met. Therefore, before receiving an inheritance or donation, it is worthwhile to scrutinize the fiscal duty associated with them to assess the best''options. Depending on the autonomous community, property inheritance taxes range from 7.65% to 34% of the property's value.

A clear understanding of taxes and their variations will help you make informed decisions and ultimately optimize the value of your inherited property.

Inevitably, when receiving an inheritance, we are faced with taxes. However, there are ways to reduce the amount of tax payable. One option is to divide the inheritance. Dividing the property between''A large number of heirs reduces the tax burden. Instead of leaving the estate to only the spouse, it can be divided between the spouse and children.

In addition, giving more of an inheritance to minors or people with disabilities can reduce the taxes that need to be paid. Thus, favoring these beneficiaries can significantly reduce tax costs.

Another option is a deferral of payment, which should be requested before five months from the date of death. You can request a one-year deferral if the inheritance did not provide you with sufficient funds to pay your taxes. You can also consider installment payments for up to five years. If you are a''A spouse, parent, descendant or close relative over the age of 65 and lived in an inherited home with the deceased for two years before their death, you can request a deferred payment for three years.

If you can't handle a deferred payment, you can go to a financial intermediary to get a mortgage loan if you own a fully or nearly fully paid off home. These loans are 30% to 40% of the appraised value of the home, and are a good option for paying off taxes.