How do you assess the value of a property estate with an agency?

In Spain, as in many other countries, assessing the real value of a property is a very important formality when inheriting a property. This helps to avoid conflicts between heirs and problems with the tax authorities. However, in order to carry out this procedure and avoid a tax adjustment, it is recommended to use the services of a real estate agency. Here we will show you the advantages of contacting a specialised structure. We will also show you how to value a real estate estate estate through an estate agency.

Valuation of a property estate: why use an agency?

In regions such as Rosas, Empuriabrava and Playa de Aro, the valuation of a property is a symbolic act that most often requires the expertise of a professional or an estate agency. Indeed, before proceeding with an inheritance in Spain, the heirs are obliged to make a tax declaration indicating the market value of all the property left by the deceased.

If you use a real estate agency, it will be able to provide you with the real market value of the property. The agency will provide you with qualified experts who are very familiar with the local property market. Taking into account the characteristics of your residence, they will be able to give you an estimate of your property. In this way, you are sure to obtain a value close to the market value.

In addition to helping you evaluate the price of the property bequeathed, these professionals will draw up a real estate certificate for you. The law provides for a sanction against heirs in the event of omission or under-valuation of an estate. Thus, with the intervention of a qualified agency, you will avoid a tax adjustment. In addition, the estate agency or agent will be able to advise you better if you choose to sell the property and divide the money from the sale among the heirs.

How is the valuation of a property estate carried out by an agency?

Whether you are in Rosas, Playa de Aro or Lloret de Mar, the process for valuing a property in Spain is the same. The agency you find in any of these cities will proceed in the same way. However, some may offer additional services for a tailor-made service.

During the valuation, the real estate agency first checks that the deceased did not leave a will. If this is not the case, the agency obtains a copy from the notary's office and then uses it to find out which heirs are named in it. On the other hand, if the deceased did not have time to draw up a will, the agency draws up a notarial deed (Declaración de Herederos).

In this deed, it lists the family members and relatives who are involved in the estate and their rights. To draw up this list, the agency uses the papers provided by the deceased's close relatives. It then draws up a complete and up-to-date list of all the deceased's assets. After this stage, the notary settles the estate using one of the following two methods.

The first option is to provide you with a 'value notice' or 'valuation certificate'. With this document, the notary will be able to estimate the value of your property using a non-in-depth technique. In fact, the price of the property will be determined by the agency using online tools and based on the information you have provided. In other words, the professional does not carry out any on-site verification of the property.

The second option consists of a more precise and detailed estimate. Here the agency uses the online databases at its disposal to estimate the value of the property. Databases such as "BIEN" and "PERVAL" contain information on trends, prices and statistics for certain areas, as well as addresses near these areas. The agency uses this information to give you a value close to the market value.

Tax settlements after property valuation

Once the property estate has been assessed, you will pay the tax authorities the taxes and other costs relating to the estate. These include inheritance tax (Impuesto de Sucesiones), capital gains tax (Impuesto de la Plusvalía), agency fees, etc.

For the payment of inheritance tax, the Spanish tax authorities use a graduated table, with tax rates ranging from 7.65% to 34%. These rates are applied to the amount of capital inherited by each heir. For the calculation of inheritance tax, the tax authorities also take into account the degree of relationship between the deceased and each heir.

Indeed, deductions are applied to the inherited capital. The amount of the allowance depends mainly on your relationship to the deceased. The following is a summary of the tax reductions under Spanish national law:

• Descendants up to the age of 21: between 15,956.87 and 47,858.59 euros
• Descendants, adopted children over 21, surviving spouses and ascendants: 15,986.87 euros
• Other family heirs: 7,993.46 euros

In addition, you should be aware that these tax reductions may increase in some areas of Spain, as these are the minimum limits set by the National Law.

What are the consequences if your property estate is incorrectly valued?

The law requires that the heirs pay inheritance tax when they file the declaration of inheritance. During this declaration, you must list all the assets and their market value. In the event of bad faith or undervaluation of a property, you may be subject to severe penalties after an inheritance tax audit.

If the administration notices that you have defrauded the estimate, you will pay a penalty of between 40% and 80% of the additional amount due. On the other hand, if this undervaluation is unintentional, you will pay 0.40% each month on the amount of the additional duty claimed by the tax authorities. In addition to the tax adjustment, you may be penalised if the property estate is sold quickly.

If you sell the property at a higher price than that stated in the inheritance declaration, the tax authorities will deduct income tax from your capital gain, which is not good for you. Moreover, you will also be penalised in the event of an amending declaration. So you might as well entrust the valuation to an estate agent to limit the risks.