In Spanish law there are two ways of saying no to an inheritance, and only one of them is a real waiver. The difference lies in two words: "in favour of". When you simply waive, your share goes wherever the law or the will says. When you waive "in favour of" a specific person, the Civil Code treats it as accepting first and then giving it away.
The pure and simple waiver
This is the real waiver. It is made before a notary, in a public deed, and admits no conditions and no beneficiary (article 1008 of the Civil Code). Whoever waives is left out of the inheritance as if they had never been called to it. Their share accrues to the other heirs of the same degree, or goes to whoever the will names as substitute. Someone who waives this way pays no inheritance tax, because they have received nothing.
A detail that surprises people: in an intestate succession, the children of the person who waives do not step into their place. Representation works when the heir died earlier or was disinherited, not when they waive. We cover it in accepting or renouncing an inheritance.
The waiver "in favour of"
Article 1000 of the Civil Code is clear: whoever waives in favour of one or more specific persons is in fact accepting. And if they do it for free, they then make a gift. For the tax office these are two consecutive acts:
- First, inheritance tax for the person waiving, on the share that was theirs, as if they had accepted it.
- Then, gift tax for the sibling who receives it, on the value of that share.
And here comes the blow. In the Valencia region, gifts between parents and children enjoy a very high relief, but gifts between siblings do not. A sibling who receives by gift is taxed in group III, without that relief and with a higher multiplier. What looked like a kind gesture can turn into a tax bill nobody expected. More on the rates in gift tax in the Valencia region.
"Waiving in favour of someone is accepting and giving away in the same act. And the gift has a tax of its own."
When the pure waiver already gets you what you want
If there are two of you and you waive purely and simply, your share accrues to your sibling by law. The result is the one you wanted, with a single tax, your sibling's inheritance tax on everything they receive. Before waiving "in favour of", it is worth asking whether a plain waiver does not already lead to the same place.
It does not always. If there are more heirs, if the will names substitutes, or if you want one specific sibling to receive it and not the others, the pure waiver will not do and another route is needed.
The other options
- Unequal division with compensation. You all accept and, in the division, your sibling takes more assets and compensates you in cash. It is taxed as an inheritance and, where applicable, as an excess award, but not as a gift.
- Accept and gift later, in a planned way, using whatever reductions exist at the time. It does not avoid the tax, but it lets you choose the moment and the amount.
- Waive in exchange for a price. If your sibling pays you for your share, that is not a waiver either: it is a sale of inheritance rights and is taxed as such.
Three things that cannot be undone
- A waiver is irrevocable. Once signed before a notary, there is no way back.
- You cannot waive an inheritance that has not yet opened. Before the death, the paper is worthless.
- If the person waiving has debts, their creditors can ask the court to accept the inheritance on their behalf up to the amount of their claims.
Frequently asked questions
Can I waive the inheritance so that my sibling keeps it?
You can, but in law that is accepting and gifting. Inheritance tax is paid on your share and gift tax on your sibling's. There is almost always a better way.
What is the difference between a pure waiver and a waiver in favour of someone?
The pure one has no beneficiary and leaves you out of the inheritance without paying anything. A waiver in favour of someone is treated as acceptance followed by a gift (article 1000 of the Civil Code).
Do gifts between siblings get relief in the Valencia region?
Not like gifts from parents to children. Siblings are taxed in group III, without that relief.
Can a waiver be cancelled?
No. It is irrevocable from the moment it is signed before a notary.