Advice for the sale of a real estate inheritance on Fuerteventura

Homes transferred by inheritance now represent more than 15% of real estate transactions in Spain, an upward trend that is also reflected in the Canary Islands, according to data from the INE and the Association of Registrars.

With our legal, fiscal and commercial team, the heirs can sell with total security, without the need to travel to the island, obtaining the best profitability and complying with all legal obligations.

Reasons to have a real estate consultancy specialized in inheritance management

The owner-heir who receives a property is faced with several fronts: acceptance of the inheritance, registration, settlement of regional and municipal taxes, valuation and placing on the market, and finally the sale transaction.

Poor management can lead to cost overruns or delays that affect profitability or even default on obligations. Critical factors include:

• The correct quantification of the acquisition value (to calculate the capital gain if sold).
• The processing of inheritance tax, which depends on the autonomous community and degree of kinship.
• Municipal capital gains tax (Tax on the Increase in the Value of Urban Land) both on inheritance and sale.
• The obligation to declare the sale in the IRPF as a capital gain or loss.

For a real estate company advising the heir, the added value lies in accompanying both “before the sale” (acceptance, registration, taxes) and “during the sale” (valuation, marketing, negotiation, closing).

7 Steps for the sale of an inherited property in Fuerteventura

Acceptance of inheritance

• Request the certificate of last will and testament, death of the deceased.
• Verify if there is a will or if the inheritance is intestate.
• Drawing up the deed of acceptance and adjudication of inheritance before a notary. In the Canary Islands, the heir must pay the inheritance tax before the deed.
• Present the inheritance deed at the land registry corresponding to the property.

Settlement of inheritance taxes

• Inheritance and Gift Tax and Donations (ISD): although the Canary Islands have their own tax regime, the heir must check the allowances and deadlines. The general state rate ranges between 7.6% and 34% depending on relationship and value.
• Municipal capital gains tax on inheritance: it is calculated on the value of the land from the time the deceased acquired the property until the time of inheritance. 1
• Verify if there are any remaining encumbrances (mortgage, usufructs, etc.) and demand their cancellation or adjustment.

Registration and legalization of the property title

• Once the inheritance has been accepted and the taxes have been paid, register the new ownership (heirs) in the Land Registry.
• In some cases on Fuerteventura it may be advisable to review the cadastral data and update the information to ensure that the offer to the market starts with a clean title.

Property valuation and market strategy

• To carry out a real estate valuation study taking into account the location in Fuerteventura, the profile of the buyer (national / foreign), the holiday demand, the physical condition of the property.
• In collaboration with the real estate company, design a sales plan that includes: state of conservation, possible improvements or renovations to increase the value, marketing strategy, photos/pro videos, adaptation to the target audience.
• As a specialized consultancy, Destiny Home can structure this plan and coordinate the execution, including the management of the documents that the buyer will require (energy certificate, certificate of occupancy, etc).

Document preparation for sale

• Verify that the property is free of encumbrances: updated registry certificate, nota simple, certificate of being up to date with IBI and community expenses.
• Draw up the earnest money contract or pre-contract if it comes to that point.
• Prepare the deed of sale before a notary, where the heir-seller must prove his condition of heir, liquidation of inheritance, etc.

Tax aspects of the sale

• To declare the sale operation in the next IRPF campaign: the heir must pay tax on the capital gain, which is calculated as the difference between the acquisition value (inherited value + expenses) and the transfer value (sale price – deductible expenses).
• Personal income tax brackets for capital gains in 2024 on the sale of inherited real estate:
  • 0-6.000 € → 19 %.
  • 6.000-50.000 € → 21 %.
  • 50.000-200.000 € → 23 %.
  • 200.000-300.000 € → 27 %.
  • More than 300,000 € → 28 %.
• Municipal capital gain on sale: the increase in the value of the land from the time it was inherited until it is sold, payable to the municipality.
• Coordination with the developer’s/real estate company’s tax advisor to optimize taxation (e.g. deductible expenses: agency commissions, renovations, fees, capital gains paid on inheritance).

Closing of the transaction and final settlement

• Signing of the deed of sale before a notary public.
• Delivery of keys, registration of the buyer as the new owner, cancellation of the seller’s registration if necessary.
• Settlement of the operation account: distribution among heirs, payment of commissions, taxes, agency fees.
• Archiving of documentation and advice on subsequent tax implications (e.g., if the seller remains in Spain or is a non-resident, etc.).

Manage your inherited property in Fuerteventura with Destiny Home

Our real estate agency offers a comprehensive service to the heir: inheritance management, property valuation, marketing positioning, negotiation with the buyer, closing with all the formalities verified.

It is an ideal solution to reduce deadlines and risks, since it avoids the heir having to go separately to the notary’s office, notary public, appraiser, agency.

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