What is the process for declaring and paying inheritance tax in Andalucía?

Declaring and paying inheritance tax in Andalucía involves several critical steps to ensure compliance and potentially mitigate the tax burden. Firstly, once a property owner passes away, the heirs must obtain the death certificate and the last will and testament (if one exists). If the deceased was a non-resident in Spain but owned property in Costa del Sol, a Spanish will is highly recommended to simplify the process. Next, heirs need to gather all necessary documentation, which typically includes NIE numbers for all beneficiaries, valuation of the inherited property, and proof of any existing debts or deductions. This documentation is crucial for calculating the inheritance tax liability. Following the documentation phase, the inheritance tax return (Modelo 650 or 651, depending on residency and specific circumstances) must be prepared and submitted to the regional tax authorities (Agencia Tributaria de Andalucía) within six months of the date of death, although extensions can be requested under certain conditions. This return calculates the tax due based on the value of the assets, the relationship between the deceased and the heirs, and any applicable regional allowances or reductions. Notably, Andalucía has significantly reduced inheritance tax for direct relatives (group I and II) since 2019, providing substantial relief for many. Finally, the determined tax amount must be paid. Once the tax is paid and the declaration submitted, the heirs can proceed with formally transferring the property ownership into their names, which involves signing before a Spanish notary and registering the property in the relevant Land Registry. Engaging a specialized Spanish lawyer is strongly advised throughout this entire process to navigate the complexities, ensure all legal and fiscal obligations are met, and optimize any available tax benefits, especially for non-residents.