Tax authorities unduly charge IRS on the sale of houses in undivided inheritances?

The taxation of the sale of real estate belonging to undivided inheritances remains shrouded in legal and fiscal uncertainty.

While the Supreme Administrative Court (STA) has been rejecting the application of capital gains tax for IRS purposes in these transactions, the Tax and Customs Authority (AT) maintains a divergent interpretation and warns of the possibility of taxation in certain cases. The controversy is particularly relevant at a time when the Government has just approved a legislative package aimed at accelerating the sale of properties blocked in undivided inheritances.

Inheritance War: Supreme Court rejects tax but AT does not back down
In an interview with ECO, the head of the Order of Certified Accountants (OCC) is particularly critical of the Tax Authority's position, accusing it of "making a clean sweep" of the STA's unifying ruling. Paula Franco asks the government to clarify the dispute, otherwise the measure to release houses trapped in undivided inheritances will lose its effectiveness. It advises taxpayers who sold undivided inherited properties in 2025 not to declare the transaction in this year's income tax return.

SOURCE: ECO