Wealth Tax: when to declare assets received through inheritance

Determining the exact moment an heir must include received assets in their Wealth Tax return has raised doubts as to whether the obligation arises upon death or upon the formalization of the acceptance of the inheritance. The Dirección General de Tributos (DGT) has issued a binding ruling to resolve this matter.

What the DGT has resolved

The DGT establishes that Wealth Tax accrues on December 31 of each year and affects the assets owned by the taxpayer on that specific date. In this regard, the administration bases its decision on the Civil Code, which provides that the effects of the acceptance of an inheritance are retroactive to the moment of the death of the deceased.

Consequently, the heir must include the inherited assets in their tax return for the fiscal year in which the death occurred, regardless of whether the formal acceptance of the inheritance takes place in a subsequent fiscal year.

What this means for you

If you are a beneficiary of an inheritance, the key date for your tax obligation is not the date of the deed of acceptance or the formalization of the assets, but the date of the deceased's passing. If the death occurs in a specific fiscal year, those assets already form part of your estate for tax purposes regarding the accrual of that year.

This criterion directly affects natural persons receiving assets through succession, who must keep in mind that ownership of the assets is considered acquired from the moment of death for the fulfillment of their Wealth Tax obligations.

What you should do

It is necessary to verify the exact date of the deceased's death to determine the correct fiscal year in which the new assets must be integrated into your tax base. Since the regulations rely on the retroactivity of the acceptance of the inheritance, the correct integration of these assets is fundamental to avoid discrepancies with the Tax Administration. It is recommended to assess each particular situation to ensure that the tax return faithfully reflects the wealth composition required by Law 19/1991.