Inheritance lawyer in Madrid: administer your estate with the maximum allowance and without disputes

When a death occurs in Madrid, the family must address, within six months, the settlement of the Inheritance and Gift Tax, the processing of the death certificate, the certificate of last wills, the copy of the will or the declaration of intestate heirs, the asset inventory, the hereditary partition and Land Registry registrations. That is more than a dozen separate procedures before different bodies, with deadlines running from the very day of death and with direct financial consequences if they are missed. Managing all of this without specialist advice during a period of bereavement is an unnecessary additional burden. Furthermore, Madrid has a fiscally very significant feature that many families are unaware of: the Comunidad de Madrid applies a 99% allowance on the Inheritance and Gift Tax liability for descendants, ascendants and spouses. In practice, an inheritance between parents and children in Madrid is taxed at virtually nothing. But to benefit from this allowance, the self-assessment must be filed correctly and on time, and all formal requirements must be met. An error in the self-assessment or a late submission can generate surcharges and interest that negate the tax saving.

Since 2010 · 16 years Tax agent AEAT

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Why BM Consulting

Specialised advice and personal service

At BMC we are specialist inheritance lawyers in Madrid with a comprehensive service covering every stage: we obtain the certificate of last wills, request the copy of the will from the Colegio de Notarios de Madrid, process the declaration of intestate heirs if there is no will, draft the partition deed, manage the ISD self-assessment making full use of the 99% allowance of the Comunidad de Madrid, and register assets at the Land Registry. If the inheritance gives rise to a dispute between heirs, we act as mediators or, where necessary, as lawyers in the judicial partition proceedings. We know the Madrid Courts of First Instance specialising in succession matters and the usual criteria for asset valuation and interpretation of wills executed before Madrid notaries.

  • In Madrid, the Inheritance Tax allowance for direct heirs is 99% — an inheritance between parents and children is virtually tax-free.

  • The deadline to file the Inheritance Tax in Madrid is 6 months from the date of death, extendable by a further 6 months.

  • Without a will, the estate is distributed according to the statutory order of heirs — the process is longer and more costly.

  • Where there are debts, the heir may accept with benefit of inventory or renounce before a notary — inheriting only the net estate.

How we work

From first contact to case completion

  1. First steps after the death

    In the first few days we process the death certificate, apply for the certificate of last wills from the Ministry of Justice and obtain the authorised copy of the will from the Colegio de Notarios de Madrid. If there is no will, we initiate the declaration of intestate heirs. We inform you of all deadlines running from the date of death.

  2. Inventory and valuation of the hereditary estate

    We prepare the full inventory of the deceased's assets: properties in Madrid and other provinces, bank accounts, vehicles, company shareholdings, life insurance policies, debts and encumbrances. We value the assets for ISD purposes using criteria that maximise the 99% Comunidad de Madrid allowance and minimise the risk of a values review by the tax authority.

  3. Partition deed and adjudication of assets

    We draft the partition deed with the adjudication of assets among the heirs, respecting the forced shares (legitimas) and any specific bequests. If all heirs agree, the deed is formalised before a notary in Madrid. If there is no agreement, we initiate the judicial partition proceedings before the competent Court of First Instance.

  4. Tax settlement and Land Registry registrations

    We file the Inheritance Tax self-assessment before the Comunidad de Madrid, applying the 99% allowance. We manage the municipal capital gains tax (IIVTNU, or [plusvalia municipal](/es/glosario/plusvalia-municipal/)) at Madrid City Council and arrange registration of the properties at the competent Land Registry for each asset's location — Madrid has more than 20 Land Registry districts.

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The problem

When a death occurs in Madrid, the family must address, within six months, the settlement of the Inheritance and Gift Tax, the processing of the death certificate, the certificate of last wills, the copy of the will or the declaration of intestate heirs, the asset inventory, the hereditary partition and Land Registry registrations. That is more than a dozen separate procedures before different bodies, with deadlines running from the very day of death and with direct financial consequences if they are missed. Managing all of this without specialist advice during a period of bereavement is an unnecessary additional burden. Furthermore, Madrid has a fiscally very significant feature that many families are unaware of: the Comunidad de Madrid applies a 99% allowance on the Inheritance and Gift Tax liability for descendants, ascendants and spouses. In practice, an inheritance between parents and children in Madrid is taxed at virtually nothing. But to benefit from this allowance, the self-assessment must be filed correctly and on time, and all formal requirements must be met. An error in the self-assessment or a late submission can generate surcharges and interest that negate the tax saving.

Our solution

At BMC we are specialist inheritance lawyers in Madrid with a comprehensive service covering every stage: we obtain the certificate of last wills, request the copy of the will from the Colegio de Notarios de Madrid, process the declaration of intestate heirs if there is no will, draft the partition deed, manage the ISD self-assessment making full use of the 99% allowance of the Comunidad de Madrid, and register assets at the Land Registry. If the inheritance gives rise to a dispute between heirs, we act as mediators or, where necessary, as lawyers in the judicial partition proceedings. We know the Madrid Courts of First Instance specialising in succession matters and the usual criteria for asset valuation and interpretation of wills executed before Madrid notaries.

Process

How we do it

1

First steps after the death

In the first few days we process the death certificate, apply for the certificate of last wills from the Ministry of Justice and obtain the authorised copy of the will from the Colegio de Notarios de Madrid. If there is no will, we initiate the declaration of intestate heirs. We inform you of all deadlines running from the date of death.

2

Inventory and valuation of the hereditary estate

We prepare the full inventory of the deceased's assets: properties in Madrid and other provinces, bank accounts, vehicles, company shareholdings, life insurance policies, debts and encumbrances. We value the assets for ISD purposes using criteria that maximise the 99% Comunidad de Madrid allowance and minimise the risk of a values review by the tax authority.

3

Partition deed and adjudication of assets

We draft the partition deed with the adjudication of assets among the heirs, respecting the forced shares (legitimas) and any specific bequests. If all heirs agree, the deed is formalised before a notary in Madrid. If there is no agreement, we initiate the judicial partition proceedings before the competent Court of First Instance.

4

Tax settlement and Land Registry registrations

We file the Inheritance Tax self-assessment before the Comunidad de Madrid, applying the 99% allowance. We manage the municipal capital gains tax (IIVTNU, or [plusvalia municipal](/es/glosario/plusvalia-municipal/)) at Madrid City Council and arrange registration of the properties at the competent Land Registry for each asset's location — Madrid has more than 20 Land Registry districts.

99%
ISD allowance in the Comunidad de Madrid
6 months
Deadline to settle the tax
20+
Land Registry districts in Madrid city

My father passed away leaving a flat in the Barrio de Salamanca and several accounts. We were three siblings and there was some tension over the split. BMC explained the 99% ISD allowance in Madrid, which none of us knew about, handled all the paperwork and proposed a distribution that everyone accepted. We paid virtually nothing in inheritance tax.

Elena Saura Heir and teacher, Madrid

Inheritances in Madrid: the tax allowance that changes everything

The Comunidad de Madrid has one of the most favourable tax regimes in Spain for inheritances between close family members. The 99% allowance on the Inheritance and Gift Tax liability for transfers between parents, children and spouses means that, in practice, an inheritance in Madrid between these persons is taxed at virtually nothing. The difference compared with communities such as Catalonia — where the tax can represent between 7% and 34% of the inherited value — is enormous.

However, to benefit from this allowance the formal requirements must be met: the self-assessment must be filed on time, all assets must be correctly declared and the relevant multiplier coefficients for the degree of kinship must be applied. A formal error can trigger a review by the Agencia Tributaria de la Comunidad de Madrid and generate supplementary assessments with interest.

The Madrid inheritance process: step by step

Processing an inheritance in Madrid involves managing documentation before several bodies: the Civil Registry, the Ministry of Justice (certificate of last wills), the Colegio de Notarios de Madrid, the Agencia Tributaria de la Comunidad de Madrid, Madrid City Council (plusvalia municipal) and the Land Registry district corresponding to each property’s location.

Madrid city has more than 20 Land Registry demarcations, each with its own geographical jurisdiction. A flat in Vallecas is registered at a different Land Registry from one in Hortaleza or Retiro. Coordinating all these procedures on time requires specific experience.

Wills in Madrid: types and effects

The most common form of will in Madrid is the open notarial will, executed before a Madrid notary and registered in the General Register of Last Wills. Holographic wills (written entirely in the testator’s own handwriting) also exist; in the event of death they must be judicially recognised.

A well-drafted will can save heirs significant disputes and costs. The improvement of the improvement third (tercio de mejora), specific bequests, the appointment of an executor (albaceas) and substitution clauses in the event of a named heir’s prior death are provisions that, correctly used, give the testator control over the destination of their estate.

Common inheritance disputes in Madrid

Disputes in Madrid inheritances follow recurring patterns: high-value real estate in premium areas (Salamanca, Chamberi, Pozuelo, La Moraleja) that heirs do not wish to sell yet cannot buy from one another; heirs who have already received money from the deceased during their lifetime (lifetime gifts that must be brought into hotchpot); jointly held bank accounts that banks freeze until adjudication; or differences in interpreting the wishes expressed in a will.

At BMC we act across all these scenarios, prioritising out-of-court settlement where possible and litigation before the Madrid Court of First Instance when the dispute has no other resolution.

BMC has an office in Madrid. Visit our Madrid office for personalised advice nearby.

FAQ

Frequently asked questions

The Comunidad de Madrid applies a 99% allowance on the Inheritance and Gift Tax liability for transfers between descendants, ascendants and spouses (Groups I and II). In practice, an inheritance between parents and children in Madrid is taxed at virtually nothing, regardless of the value of the assets inherited. This is one of the most significant tax advantages of residing in Madrid compared with other autonomous communities such as Catalonia, Asturias or Valencia, where the tax may represent a meaningful percentage of the estate's value.
The deadline to file the self-assessment of the Inheritance Tax before the Comunidad de Madrid is six months from the date of death. An extension of a further six months can be requested provided it is applied for before the initial deadline expires. Missing the deadline results in surcharges of 5%, 10%, 15% or 20% depending on the delay, plus default interest. There is no statutory deadline for Land Registry registrations, but completing them as soon as possible is strongly advisable.
If the deceased did not make a will, a declaration of intestate heirs must be obtained. If the heirs are descendants, ascendants or the spouse, the procedure is handled before a notary (faster and less costly). If the heirs are other relatives or there are none, the procedure is judicial. Once heirs are declared, the partition and registration process follows the same route as an inheritance with a will. BMC manages the entire declaration of heirs procedure.
Inheritance disputes are common, particularly when high-value real estate is involved — Barrio de Salamanca, Chamberi, Pozuelo, La Moraleja — and heirs have conflicting interests. The options are: mediation (we seek an out-of-court settlement), judicial partition before the Court of First Instance (slower and more costly), or a notarial agreement if all heirs sign. As inheritance lawyers in Madrid we advise on all these routes and represent each heir's interests.
It depends on the type of assets. If the inheritance includes real estate, the acceptance and adjudication must be formalised in a public deed before a notary, which is then registered at the Land Registry. If the inheritance consists only of movable assets (bank accounts, vehicles, shareholdings), it can be formalised in a private document, though banks typically require a notarial deed before releasing accounts. BMC coordinates with Madrid notaries throughout the process.
Yes. Renunciation is the heir's right and may be exercised when the deceased's debts exceed the value of the assets, when the true financial position is unknown and the heir wishes to avoid taking on hidden liabilities, or simply when the heir does not wish to accept. Renunciation must be formalised before a notary and is final: it is not possible to accept and then renounce, nor to renounce and then accept. An alternative to outright renunciation is acceptance with benefit of inventory, which limits the heir's liability to the estate itself — meaning debts are only payable up to the value of the assets inherited, without risk to the heir's personal estate. BMC advises in each case on whether renunciation or acceptance with benefit of inventory is the better option.

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Frequently asked questions

Questions about Inheritance Lawyer in Madrid 2026

The Comunidad de Madrid applies a 99% allowance on the Inheritance and Gift Tax liability for transfers between descendants, ascendants and spouses (Groups I and II). In practice, an inheritance between parents and children in Madrid is taxed at virtually nothing, regardless of the value of the assets inherited. This is one of the most significant tax advantages of residing in Madrid compared with other autonomous communities such as Catalonia, Asturias or Valencia, where the tax may represent a meaningful percentage of the estate's value.
The deadline to file the self-assessment of the Inheritance Tax before the Comunidad de Madrid is six months from the date of death. An extension of a further six months can be requested provided it is applied for before the initial deadline expires. Missing the deadline results in surcharges of 5%, 10%, 15% or 20% depending on the delay, plus default interest. There is no statutory deadline for Land Registry registrations, but completing them as soon as possible is strongly advisable.
If the deceased did not make a will, a declaration of intestate heirs must be obtained. If the heirs are descendants, ascendants or the spouse, the procedure is handled before a notary (faster and less costly). If the heirs are other relatives or there are none, the procedure is judicial. Once heirs are declared, the partition and registration process follows the same route as an inheritance with a will. BMC manages the entire declaration of heirs procedure.
Inheritance disputes are common, particularly when high-value real estate is involved — Barrio de Salamanca, Chamberi, Pozuelo, La Moraleja — and heirs have conflicting interests. The options are: mediation (we seek an out-of-court settlement), judicial partition before the Court of First Instance (slower and more costly), or a notarial agreement if all heirs sign. As inheritance lawyers in Madrid we advise on all these routes and represent each heir's interests.
It depends on the type of assets. If the inheritance includes real estate, the acceptance and adjudication must be formalised in a public deed before a notary, which is then registered at the Land Registry. If the inheritance consists only of movable assets (bank accounts, vehicles, shareholdings), it can be formalised in a private document, though banks typically require a notarial deed before releasing accounts. BMC coordinates with Madrid notaries throughout the process.
Yes. Renunciation is the heir's right and may be exercised when the deceased's debts exceed the value of the assets, when the true financial position is unknown and the heir wishes to avoid taking on hidden liabilities, or simply when the heir does not wish to accept. Renunciation must be formalised before a notary and is final: it is not possible to accept and then renounce, nor to renounce and then accept. An alternative to outright renunciation is acceptance with benefit of inventory, which limits the heir's liability to the estate itself — meaning debts are only payable up to the value of the assets inherited, without risk to the heir's personal estate. BMC advises in each case on whether renunciation or acceptance with benefit of inventory is the better option.
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