Upon the demise of a person in Spain, our Inheritance law deems as part of the estate all household goods. It is presumed by law that the value given to such goods is 3% of the estate’s value, unless the heirs allocate a higher value or reliably prove that there are no household goods or that its value is less than 3% of the estate. Household goods are referred to in the Spanish Inheritance law as goods intended to satisfy domestic and personal needs located in the properties included in the estate.

The Supreme Court has had to clarify what assets and goods must be included in the household goods presumption rule.

In the case in hand the taxpayer proves by different means, such as a notarial report and a valuation report of the goods that the household goods included must be those of personal use and those which can yield income.

The Supreme Court rules that household should not be determined by simply taking a percentage out of the total estate’s value, but only those which from a civil and tax point of view are considered as household goods, hence, those which can be identified as of personal use, excluding all other goods/assets. Those goods that can potentially yield income as well as money or shares must not be included in the household goods presumption.