The short answer: do not let the deadline slip by while you do nothing. You have six months from the death, plus six more if you ask in time. You can pay with the money the deceased had in the bank even if the accounts are frozen, ask to defer the payment or pay in instalments, or sell something from the estate. And before you panic, do the sums: if you are a child, spouse or parent of the deceased, in the Valencia region the tax usually ends up being very small.
In this article
First things first: how much will you really pay?
In the Valencia region, the children, spouse and parents of the deceased (groups I and II) get a 99% relief on the tax due, with no cap in the current wording of the law (article 12 bis of Valencian Law 13/1997). Before that, each heir in group II deducts 100,000 euros from the taxable amount, and if you inherit the deceased's main home there is a further 95% reduction on its value, capped at 150,000 euros per heir, provided you keep it for five years (article 10).
Siblings, nephews, nieces, uncles and aunts by blood (group III) get only 25% relief today, so their bill can be sizeable. We go through it in detail in our guide to inheritance tax in Valencia.
One detail matters a lot: the 99% relief only covers the assets you declare in a self-assessment filed on time, or filed late but before the tax office contacts you (article 12 bis.3). If you wait for them to write to you, you can lose it. That is why you should not sit still, even with no money.
The deadline: six months, plus an extension if you ask in time
The tax return is due within six months of the death (article 12 ter of Law 13/1997 and article 67 of the Inheritance Tax Regulations, Royal Decree 1629/1991). If you need more time, you can ask for an extension of another six months. The conditions are in article 68 of the Regulations:
- You must ask within the first five months. If you ask in the sixth, it will be refused.
- If you get no answer within a month, it is treated as granted.
- It is not free: you pay late-payment interest from the end of the six months until the day you file.
It does not give you the money, but it gives you room to sell or raise funds without surcharges.
Your options, from simplest to most involved
1. Pay with the money in the deceased's accounts
The deceased's accounts are frozen, but the law lets the bank pay the tax with that money, as long as it goes straight to the tax authority and is used only for that (article 8.1 of Law 29/1987, the Inheritance Tax Act). According to the Valencian Tax Agency (ATV), if the bank is one of the Generalitat's collaborating banks, it pays the tax directly from the deceased's account and you then file the self-assessment. If it is not, you file form 740 together with form 650 to ask for authorisation. Each bank asks for its own documents, so ask early. More on this in bank accounts frozen after a death.
2. Ask for a deferral or instalments
Inheritances have their own regime. Payment can be deferred for up to one year, or split into a maximum of five annual instalments, if the estate does not contain enough cash or easily sold assets to pay (article 38 of Law 29/1987 and articles 82 and 83 of the Regulations). What you need to know:
- The ATV decides. The request goes in with the self-assessment (forms 732 and 734, or the online tool Aplazate for form 650).
- When to ask. Within the payment period. The Regulations refer to the first five months for self-assessments (article 90.2), so the safe course is not to leave it to the last minute.
- Guarantees. Instalments require a commitment to provide a guarantee covering the debt, the interest and a further 25%. But if the debt is 50,000 euros or less, no guarantee is required (article 2 of Order HFP/583/2023).
- Interest. You pay late-payment interest, which is the statutory interest rate plus 25% (article 26.6 of the General Tax Act).
- If there is no answer, the official procedure page says silence means refusal. Asking on time does, however, stop the debt going to enforcement while it is decided (article 65.5 of the General Tax Act).
3. Sell an asset from the estate
Selling a flat or premises is often how you pay everything and share out the rest. To sell, the inheritance must be accepted (selling counts as accepting, articles 999 and 1000 of the Spanish Civil Code) and, until the estate is divided, all the heirs must sign. On top of that, the Land Registry will not record the inheritance deed unless the tax return has been filed (article 33 of Law 29/1987). The usual order is to sign the inheritance deed, file the self-assessment (with a deferral if needed) and then sell. The other costs are in what an inheritance costs in Valencia.
If the others will not sell, you can sell your share of the estate to an outsider, although your co-heirs have one month to take it over at the same price (article 1067 of the Civil Code).
4. Have someone advance the costs
If the estate includes a property to be sold and we handle that sale, Equus Capital advances the costs (the tax, the notary and the paperwork) and everything is paid from the sale: what we advanced, the sale commission and our fees.
5. If the inheritance is not worth it
If there are more debts than assets, the tax is not the real problem. You can turn the inheritance down, in which case you pay no inheritance tax on what you renounce (article 28 of Law 29/1987), or accept it "with benefit of inventory" before a notary, so you are only liable up to the value of the estate (articles 1010, 1011 and 1023 of the Civil Code). We explain it in accepting or renouncing an inheritance.
What happens if you file late
If you file late before the tax office contacts you, you pay a surcharge of 1% plus another 1% for each full month of delay. After twelve months, the surcharge is 15% plus interest (article 27.2 of the General Tax Act). If you pay at the same time, the surcharge is cut by 25% (article 27.5).
If the tax office contacts you first, there is an assessment with interest, a possible penalty (article 191) and the loss of the 99% relief on whatever you did not declare. So if you are late, file as soon as you can, even if you ask for a deferral along with the self-assessment (article 46.1 of the General Collection Regulations).
Common mistakes
- Not filing because "there is nothing to pay". Even if the tax comes to zero, the self-assessment still has to be filed.
- Taking money out with the deceased's card. It can count as accepting the inheritance and makes it harder to renounce later.
- Selling without everyone's agreement. Until the estate is divided, no heir can sell a specific asset alone.
When to get help
When three or four months have passed and you do not know what you owe, when the estate is mostly property, when the heirs cannot agree, or when you suspect there are debts. A calculation done in time often shows the problem is smaller than it looked. On timings, see how long it takes to receive an inheritance.
Frequently asked questions
Can I pay inheritance tax with the deceased's money?
Yes. The bank can pay it from the deceased's accounts straight to the tax authority (article 8.1 of Law 29/1987). If the bank is not a collaborating bank, you ask for authorisation with form 740.
How long do I have to pay inheritance tax in Valencia?
Six months from the death. You can ask for six more within the first five, paying interest for the extra time.
Can I pay inheritance tax in instalments?
Yes: a deferral of up to one year or up to five annual instalments if the estate lacks cash. No guarantee is needed up to 50,000 euros.
Do I lose the 99% relief if I file late?
Not if you file before the tax office contacts you: you pay a surcharge but keep the relief. If they contact you first, you lose it on whatever you did not declare.
Can I sell a flat from the estate to pay the tax?
Yes, but you must accept the inheritance and, until it is divided, all the heirs must sign.