The Superior Court of Justice of Madrid ratified a liquidation of the Inheritance Tax which includes an additional charge for domestic furniture. The court ruling rejected the claim of an heiress who received an apartment in the Spanish capital with all her belongings and furniture.
The case arose after the death of a woman without direct descendants or ancestors, who named the plaintiff as a legatee in her will.
Among the transferred assets was a home in the Spanish capital, specifically described in the document with all the elements inside.
The inheritance of an apartment in Madrid that unleashed the conflict
The legal controversy broke out when the Administration applied a 3 percent surcharge on the value of the apartment for furniture and personal belongings. This sum reached 5,676.48 euros, a figure that is equivalent to almost $7,000 according to the current exchange rate.
The total value of the inheritance was originally set at 189,716 euros. However, the inclusion of the value of the furniture raised the base on which the tax was calculated to 195,392.48 euros, resulting in a final tax liability of 61,284.24 euros.
The woman challenged the liquidation before the administrative bodies with the argument that such economic burden did not correspond. He argued that, due to his status as legatee of specific assets, the law prohibits the automatic attribution of household goods.
His defense was based on article 23.2 of the Inheritance and Donation Tax Regulations. According to this position, the furniture was already incorporated in the department’s legacy and should not be appraised as an added amount to the value of the property.
What the Justice determined
However, the General Directorate of Taxes and the Madrid Regional Economic-Administrative Court dismissed these claims. Both institutions determined that the calculation of the rate fully complied with current tax regulations.
Upon reaching the judicial instance, the judges of the Superior Court of Justice reviewed the exact terms of the will. The text indicated the delivery of the home “with all the furniture and belongings inside”, a detail that was decisive for the resolution of the conflict.
The court recalled that jurisprudence limits trousseau to goods for personal or domestic use of the deceased person. Despite this, the ruling concluded that the explicit mention in the legacy justifies the valuation of an additional 3 percent on the value of the apartment.
Finally, the Madrid justice system confirmed the validity of the administrative action and ordered the plaintiff to pay the legal costs.
The parters still maintain the possibility of filing an appeal before the Supreme Court to unify the doctrine on this type of inheritance.
