Inheritance with Furniture: How a Will’s Wording Raises the Tax. A woman in Madrid faced extra costs when inheriting a furnished apartment. The court confirmed: if the will explicitly mentions household items, the tax base increases by 3%.
In Madrid, inheriting real estate can result in unexpected expenses if the will explicitly states that the apartment is transferred together with furniture and household items. This was the exact situation faced by a resident of the capital, who inherited an apartment after the death of a relative, described in the will as being transferred "with all items and furniture inside it." This wording became key in a dispute with the tax authorities and led to an increase in the inheritance tax amount.
The essence of the issue was how to interpret the concept of "household goods" (ajuar doméstico) when calculating inheritance tax. By law, if property is transferred by will, 3% of the appraised value of the real estate is automatically added to its value—as the presumed value of household goods. In this case, it meant that an additional €5,676.48 was added to the original inheritance amount of €189,716, raising the taxable base to €195,392.48. As a result, the final tax amount was €61,284.24, and the additional expenses for the heir exceeded €5,700.
Arguments of the parties
The heir tried to challenge the need to include this 3% in the tax calculation. She argued that the furniture and belongings had already been accounted for in the value of the apartment, since the will explicitly indicated the transfer of all its contents. In her view, an additional charge for household goods in this case was not justified, as it concerned specific property, not a standard estimate.
However, the tax authorities and the courts took a different position. Her arguments were first rejected by the regional tax office, and then by the economic court. Ultimately, the case reached the High Court of Madrid, where the judges thoroughly examined the legislation and case law on this issue.
The role of wording in a will
The key point was how exactly the property was described in the will. The court recalled that the Supreme Court of Spain limits the concept of 'household inventory' only to items the deceased actually used in daily life: furniture, clothing, everyday objects. But if the will explicitly states that the apartment is bequeathed together with its contents, these items become part of the inherited property and must be taken into account when calculating the tax.
Thus, the court ruled that adding 3% to the value of the apartment was lawful, even though it concerned a specific legacy rather than inheritance of the entire estate. The wording of the will turned out to be decisive: if the will specifically lists furniture and belongings, the tax base increases.
Consequences for heirs
The court's decision confirmed: in such cases, the tax service acts within the law, and the heir must pay tax taking into account the additional value of household property. This is important to consider when drafting a will and planning real estate succession. If the document directly specifies furnishings, the tax burden may be higher than expected.
In addition, the court ordered the heir to pay court costs, capping them at 1,000 euros for each party. However, the decision can still be appealed to the Supreme Court if the parties believe that the issue requires a uniform interpretation.
Context and practice
The situation with the increase in the tax base due to wording in the will is not the only example of how an inheritance can affect one’s financial situation. There have already been cases in Madrid where receiving an inheritance led to the loss of social benefits: for example, one woman was required to return more than 5,000 euros after her assets exceeded the established limit, a case examined in detail in the article on the consequences of inheritance for recipients of Ingreso Mínimo Vital.
Thus, when processing an inheritance and drafting a will, it is important to pay close attention to the details of the wording. Even a small clarification can significantly affect the final amount of taxes and liabilities.
