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Valencia Woman Must Repay SEPE Over 140,000-Euro Inheritance

A Valencia woman must repay 9,685.95 euros in unemployment aid after selling part of a 140,000-euro inheritance, a Spanish court ruled.

Valencia Woman Must Repay SEPE Over 140,000-Euro Inheritance

A Valencia woman must repay 9,685.95 euros in unemployment benefits after Spain's state employment service, the Servicio Público de Empleo Estatal (SEPE), found that money she received from selling an inherited property put her over the income limit for the subsidy for jobseekers over 52.

The Superior Court of Justice of the Valencian Community upheld the repayment order in June 2026, confirming an earlier ruling by Valencia's Social Court number 1.

Rising numbers of over-52 subsidy recipients

The subsidy for jobseekers over 52 has become one of the most significant benefits for people facing unemployment late in their working lives. The number of recipients has grown sharply: in March 2019, 293,891 people were collecting the payment; by May 2026 that figure had reached 464,664, according to the latest available data. That is 170,773 more beneficiaries in just over seven years, an increase of 58%.

Growth has been even sharper in some regions. Extremadura recorded the largest rise, up 67% over the same period, going from 9,358 recipients in March 2019 to 15,660 in May 2026.

An inheritance and a property sale

The case centers on a woman who began receiving the subsidy in October 2021, when SEPE approved payments scheduled to run until August 2027. At the end of 2021, she and her brother inherited more than 140,000 euros in property and bank funds. She reported the inheritance to SEPE, which temporarily suspended her subsidy before resuming payments.

Herencia
Photo: Roche

In May 2022, the siblings sold one of the inherited properties, valued at 85,880.29 euros, for 153,000 euros. The woman received 76,500 euros from the sale, a sum that became central to the dispute.

SEPE demands more than 9,500 euros

After the sale, SEPE again suspended and later resumed the subsidy. The agency eventually concluded that the woman's financial situation had changed and demanded repayment of 9,685.95 euros collected between January 2022 and November 2023.

The woman argued she had informed SEPE of everything and said any repayment should be limited to the specific periods affected, pointing to a possible administrative error. Valencia's Social Court number 1 sided with SEPE and ordered the repayment.

Court distinguishes inheritance from income

The woman appealed to the Superior Court of Justice of the Valencian Community, which ruled in June 2026. The court upheld the lower ruling and confirmed the 9,685.95-euro repayment.

The ruling drew a distinction between inheriting assets and earning income from them: receiving an inheritance does not by itself disqualify someone from the subsidy, but income generated from inherited assets can affect eligibility. In this case, the 76,500 euros the woman received from the property sale was decisive in pushing her over the income limit.

As a result, the woman does not have to return the inheritance or the proceeds of the sale, only the subsidy payments she improperly received.

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