Inheritance tax has become a political flashpoint in recent years, with some parties using it to attack opponents on the left and to frame the fairness debate. Isabel Díaz Ayuso, president of the Community of Madrid, recently stressed that she does not want to attack people who have built a solid legacy through years of work. The issue has risen to prominence as more families renounce inheritances, a trend that has grown steadily over the past decade. Data show that tax reductions do not reverse this pattern. In Galicia, last year saw a record 3,213 renunciations, and 872 cases were registered in the first quarter of this year, marking the highest figures for that period in history. (Galician Official College of Notaries)
Six years ago, the Xunta faced a similar debate rooted in tax disparities between autonomous communities. In 2016 Galicia approved a tax exemption for inheritances under 400,000 euros; this threshold was raised to one million euros by 2020, but the exemption remained limited to heirs along direct lines of ascendency or descent, namely parents and children, grandparents and grandchildren, or spouses, excluding nieces, uncles, and others. (Galician Official College of Notaries)
Those measures did not create a palliation effect for renunciations, which continued to climb to the point where, last January, February, and March, Galician notaries recorded 872 refusals to accept assets bequeathed by relatives. Since 2008, renunciations have risen every year except 2020, when they fell from 3,134 in 2019 to 2,631, a dip influenced by the COVID-19 lockdowns and related delays in notarization. This trend echoes the way legacies are handled in notary offices across Spain. (Galician Official College of Notaries)
Inheritance debts emerge as a principal reason for turning away from an estate when the deceased has outstanding liabilities tied to loans, mortgages awaiting cancellation, or overdue payments to the treasury. The question is not only about what is inherited but also about what the estate owes. (Galician Official College of Notaries)
According to José Maria Graíño, dean of the Official College of Notaries of Galicia, the causes behind renunciations go beyond asset value and include the debts of the deceased. The heirs weigh the assets against the liabilities and face a financial calculus that can be daunting in practice. (Galician Official College of Notaries)
In the light of these pressures, the phrase keys emerges as a reminder of the practical realities of inheritance in Galicia. Notaries emphasize that the burden of taxes and related costs shapes decisions about accepting or renouncing an inheritance. Heirs may feel unable to meet the expenses tied to inheritance tax and the rise in urban land value, known as surplus value, especially when property values have surged. (Galician Official College of Notaries)
The General Assembly of Notaries links the uptick in renunciations in 2021 to the normalization of notarial activity after the health crisis while noting that such cases are not representative of the majority. In Galicia, for instance, 3,213 people renounced an inheritance last year, while 26,718 did so overall, a rate around 12 percent that mirrors 2020 and 2019. Early this year, renunciations have approached the historically high figure of 900 per quarter. (Galician Official College of Notaries)
There is also a rising interest in arranging estates by drafting a will, a trend seen in Galicia as notaries approved 51,677 wills last year, up from 46,462 in 2020 and 48,587 in the pre-pandemic year. This shift indicates a growing preference for orderly succession planning, with many families seeking clarity on how assets will be distributed and how debts will be managed after death. (Galician Official College of Notaries)
A shield for personal assets: the benefit of inventory
Two years ago, when his sister Estrella passed away, Antonio chose to take over his legacy but for the benefit of inventory. He did not trust that debts would not arise and wanted to ensure that no more liabilities would affect him personally. By using this mechanism, he aimed to protect his own assets while meeting any obligations left behind by his sister. This approach is seen by notaries as a way to avoid renouncing an inheritance while safeguarding personal wealth. (Galician Official College of Notaries)
Experts describe the inventory option as a formal path to ensure that debts are handled within the estate, not against the heir’s personal assets. It also allows heirs to request a full accounting before accepting or rejecting an inheritance, enabling negotiations based on the true value of the estate. (Galician Official College of Notaries)
Once the inventory is completed, any outstanding payments due from the deceased are valid as long as the inheritance is accepted. If the heirs fail to comply, the shield of inventory would not apply. (Galician Official College of Notaries)
a detailed list
A complete and faithful breakdown of all assets within the inheritance must be prepared in accordance with the Civil Code. This means the heir is not personally liable for the debts of the deceased, but only up to the value of the inherited assets. Heirs may request an inventory before deciding to accept or reject the inheritance to facilitate negotiations. (Galician Official College of Notaries)
With the inventory in place, the debtor items of the estate remain valid while the inheritance is assumed. If the heir does not comply with this process, the privilege of inventory becomes invalid. (Galician Official College of Notaries)