Common Mistakes People Make When Handling a Tenerife Inheritance

Inheritance in Tenerife is usually straightforward, but many families make simple mistakes that slow everything down or create unexpected costs. Here are the most common issues and how to avoid them.

Mistake 1: Missing the 6-Month Deadline

Heirs have six months from the date of death to file inheritance tax. Filing late can lead to penalties, even if the tax amount is almost zero.

Mistake 2: Not Getting NIE Numbers Early

Every heir must have an NIE before signing the inheritance deed. Waiting too long can delay the whole process.

Mistake 3: Declaring an Unrealistically Low Property Value

This doesn’t save money on inheritance tax but can create a large Capital Gains Tax bill later when selling.

Mistake 4: Forgetting Plusvalía Municipal

Many families don’t know this tax exists. It must be paid shortly after signing the inheritance deed.

Mistake 5: Not Checking for Debts on the Property

Unpaid community fees, mortgages or loans stay attached to the property. Always obtain a Nota Simple early.

Mistake 6: Assuming the Bank Account Will Automatically Transfer

Banks freeze accounts until all documents are submitted. This often surprises heirs.