Renouncing an Inheritance: How to Handle a Flat in Joint Property in Spain

Renouncing an inheritance of a flat in Málaga to avoid a lawsuit

A property purchased in 1987 in Málaga, unreformed since then and valued at around 200,000 euros, has an heir who has decided not to take it. According to the interested party, a straightforward renunciation of the inheritance avoids taxes, debts, and obligations before the tax authorities. It also avoids a lawsuit that was already prepared. The father passed away a few months ago, and the distribution has yet to be signed.

The key lies in a document: the will. The deceased left his vvife as the life usufructuary of all his assets and his children as heirs. Nothing more. With this document and the joint property regime, the distribution is reconstructed, and the result explains why renouncing the inheritance begins to seem like a reasonable solution.

What distribution does the law establish when there is joint property and usufruct

The flat was purchased while already married — the spouse's name appears in the deed — and it was never used as a primary residence. Under the joint property regime, half belongs to the mother by right. Of the other 50%, half goes to each child: 25% for each brother. The mother also adds the life usufruct over the rest.

A practical interpretation made by several comments in the thread: the property is blocked while she lives. One of the contributions in the thread insists that the joint property regime functions like a 50% company, and that this applies to all assets registered under the deceased's name, except those inherited.

The bill that does not appear in the will

Here begins the real problem. The capital gains tax is estimated at around 2,000 euros for each brother, with a six-month deadline expiring in January 2025 and the possibility of requesting an extension. The share of one heir would be paid by the mother; the other's, by himself. "Because you have money," is the argument.

Then there is the property. Without a fitted kitchen, with the bathroom from that era and wallpaper from the 80s, the renovation is estimated at around 30,000 euros. And that does not include IBI, community fees, and insurance, which continue to run even though no one lives there. Renting it requires this prior investment and assuming the risk of non-payment. The owner who resides outside Spain adds to the list an annual obligation to file as a non-resident.

How to exit a co-ownership when the other party does not want to sell

The scenario is textbook: 50% for the mother and 25% for each child, with the sister occupying the flat and refusing both to buy the other's share and to sell her own. She has no money. The legal solution exists: the termination of co-ownership, which in the end can end in a public auction, where the property is put up for sale and the proceeds are distributed.

The process is long, expensive, and exhausting. Another faster but less well-paid option is proposed: selling the percentage to funds or individuals who buy undivided shares, accustomed to litigation. Little is obtained, but the burden disappears. And some remember that renunciation can also hurt: if the other party ends up selling the entire flat, the one who stayed out remains out forever.

The old rent, the 50-year-old sister, and the Minimum Vital Income

The other flat is an old rent from the 70s, subrogated to the mother's name, a pensioner with 1,000 euros per month. When she passes, the daughter loses protection in a couple of years. She is 50, has no work experience, and no contributions: she does not qualify for the subsidy for those over 52. The alternative mentioned is the Minimum Vital Income.

The final decision: renouncing

Finally, the decision has been made to reject the inheritance. The reasoning: not paying capital gains, not taking on fiscal obligations for a property that will not be enjoyed, not continuing to argue over every family conversation. "Let each stick support its own sail."

One unresolved data point remains. If the inheritance is rejected, the flat ends up in the hands of the mother and the sister, and whoever worked from the time it was due inherits nothing while the other receives a property in an expensive city without having contributed ever. How many Spanish inheritances will end up like this, with a flat that no one can pay, no one can sell, and a family that stops talking to each other?