Inheriting a home between several siblings It is usually quite common. On many occasions certain conflicts arise about what to do in the family home, especially when everyone wants to sell, but one object. Another very common case is that one of them wants to buy their share from the others and it is in these cases when certain “legal tricks” must be taken into account to avoid scares with the Treasury and pay less taxes.
This is how the financial expert María López explained it in a video published through her social networks, in which she gives the heirs essential advice so that the Tax Agency does not “crunch” them if they want to buy the rest of their share.
This is the extinction of the condominium, a legal figure that allows one of the co-owners to keep 100% of the home, financially compensating the others. That is, you pay each person what corresponds to their share, as would be done in the case of purchasing it, but with a great tax advantage.
Tax advantages of condominium termination
According to the expert, terminating the condominium has certain tax advantages over doing it as a purchase and sale of the inherited home.
In the latter case, one would be taxed by the property transfer tax which, according to López, can range from 6% to 11% depending on the autonomous community. “Crinkle,” he jokes in the video.
However, if you choose to terminate the condominium, the applicable tax is the documented legal acts tax, which is usually between 0.5% and 1.5% and, furthermore, it is only paid on the part that is acquired, not on the total value of the home.
The difference is substantial and can mean thousands of euros in savings. However, María López recommends going to a notary to manage the entire process and obtain adequate information on how this process works.