An inheritance that was “forgotten”: can the flat be registered without paying tax?
An inheritance in Spain was not dealt with in time, and now the flat needs to be sold? We look at a typical situation: when inheritance tax can no longer be assessed and how to prove it, so that the flat can be registered and the sale completed.
The situation
Imagine a brother and sister who inherit a flat in Tenerife from their brother, who died in January 2021. At the time, the sister applies for an extension of the deadline (prórroga), but nothing further happens. The heirs use the flat and pay the IBI (local property tax), but put off the paperwork.
Five years later, a buyer comes along. The notary explains that the flat cannot be sold without being registered in the heirs' names, and that it cannot be registered without the inheritance tax being filed.
The risk
Siblings are Group III heirs. The 99.9% relief that applies in the Canary Islands to children and spouses does not apply to them. If the tax can still be assessed, they will have to pay the full amount plus late-filing surcharges (recargos).
What needs to be checked
- The limitation period for each heir separately. In our example, the brother's filing deadline ended on 15 July 2021, and the tax has been time-barred (prescrito) since 16 July 2025. Because of the prórroga, the sister's deadline expired on 15 January 2022, and the tax has been prescrito since 16 January 2026. Heirs to the same flat may have different dates.
- Whether the period was interrupted. It is interrupted, for example, by documents filed earlier or by formal requests (requerimientos) from the ATC (the Canary Islands Tax Agency). In that case the count starts again.
- When the inheritance was actually accepted. IBI receipts and electricity and water bills show that the heirs had been using the flat from the start. Without such evidence, the limitation period may be calculated differently (herencia yacente, an estate not yet accepted).
- Plusvalía municipal (municipal capital gains tax). The limitation period for this town hall (ayuntamiento) tax is calculated separately and must also be checked.
How it is done
If the limitation period is confirmed, the heirs file modelos 660 and 650 through the ATC online office, citing prescripción, and receive proof of filing (justificante de presentación). With this, the flat can be registered at the Land Registry (Registro de la Propiedad) and sold.
In a situation like this, inheritance tax may come to €0, and the whole process from review to registration usually takes a few weeks.
Conclusion
Does this apply to you?
The procedure depends on where the deceased lived and where the heirs live. It also matters whether the tax authority has sent any requests, whether any documents were filed before, and when the inheritance was actually accepted. That is why we review every case first, and only then tell you whether the limitation period has expired.
Send us the date of death and the list of heirs, and we will tell you whether this solution applies to you.