Inheritances in your income tax return

This is a question we are often asked at the office when handling an inheritance. The answer is clear: what we receive by inheritance — whether as heir, legatee or forced heir — or by gift is not subject to personal income tax (IRPF). Instead, it is subject to Inheritance and Gift Tax.

However, any income we later obtain from the assets we have received must be declared in our personal income tax return.