Gifts tax in Spain

Specialist tax lawyers on gifting property, money or assets

We will advise you on whether it is more beneficial to transfer a property, money, or other assets during your lifetime or to leave them as part of your inheritance when drafting a will. We also manage the entire process of gift tax payment planning, ensuring that your decision is legally secure and financially efficient. From preparing donation deeds to guiding you before the notary, our lawyers team provides clear, practical advice tailored to your personal and family situation.

Plan your gift or donation with Pellicer & Heredia

Our gift tax lawyers provide clear advice on donations of property, money or assets in Spain. We’ll guide you step by step through the tax and legal implications.

What is the Spanish gift tax?

Gift tax in Spain (Inheritance and Gift Tax) is levied on assets or rights received as gifts between living persons and must be paid by the recipient of the gift. It is calculated on the market value of the donation and is progressive, ranging from 7.65% to 34% under state regulations, although each autonomous community may apply very different reductions and allowances, especially between direct relatives. Residents are taxed on what they receive anywhere in the world, while non-residents are only taxed on what is located in Spain, and the usual deadline for payment is 30 days from the date of the gift.

Who pays?

In Spain, the recipient of the gift (the donee) is the one who pays the gift tax, not the person giving the gift. If you receive money, property, or any asset as a donation, you must declare it and pay the corresponding Impuesto sobre Donaciones within the legal deadline (usually 30 days).

Key differences between gift tax versus inheritance tax

Gift tax in Spain applies to assets or money received while the donor is still alive, whereas inheritance tax is charged on assets received after the death of the owner. Both fall under the same law (Impuesto sobre Sucesiones y Donaciones), but the taxable event, timing, and sometimes applicable allowances differ. Another key distinction is that gift tax must be settled within 30 days of receiving the donation, while inheritance tax usually has a six-month deadline from the date of death, extendable upon request.

When does gift tax apply?

Gift tax applies whenever an individual in Spain receives money, property, or rights without paying for them, as a voluntary transfer made during the donor’s lifetime. This includes cash transfers, real estate, vehicles, shares, or any other asset. The recipient is responsible for declaring and paying the tax, and the obligation arises immediately upon acceptance of the gift, regardless of whether the donor is resident in Spain or abroad, provided the asset is located in Spain or the recipient is a Spanish tax resident.

Tax implications of different types of gifts

Tax on gift of money

The recipient must pay inheritance and gift tax (ISD).
There are reductions and allowances depending on the autonomous community and the degree of kinship (children and spouses usually have tax advantages).
For the donation to be valid and justified before the tax authorities, it is recommended that it be formalized in a notarial deed.

Gifting property in Spain

The donee pays inheritance tax in Spain and municipal capital gains tax to the local council.
The donor may be liable for income tax if there is a capital gain on the transfer.
The tax is calculated based on the cadastral reference value, which serves as the minimum basis.

Charitable donations

They are tax incentivized with deductions in personal income tax or corporate tax.
Individuals can deduct up to 80% of the first €150 donated and 35-40% of the rest.
To apply the deduction, it is essential to have the donation certificate issued by the beneficiary entity.

How much is the Spanish gift tax?

Tax-free gift limit in Spain

There is not a single uniform tax-free “exemption amount” for all of Spain, because the Autonomous Communities (regions) have powers to adjust or provide reliefs or reductions. But there are baseline state-allowances under the national law (if regional laws don’t provide more generous reliefs).

Exclusion depending on relationship

The tax burden (rates and allowances) depends heavily on how closely related the donor and recipient are. Spain groups beneficiaries (for gift/inheritance purposes) into “kinship groups.” Here are the main ones:

Group	Who is included	How tax/allowances tend to differ
Group I	Children/adoptees under 21 years	Best allowances, lowest multipliers/rates.
Group II	Children/adoptees ≥ 21, parents, spouses / ascendants	Also favorable treatment, though sometimes a bit less than Group I.
Group III	Siblings, nieces/nephews, uncles/aunts, etc.	Higher taxes / fewer exemptions than I & II.
Group IV	More distant relatives, unrelated persons	Least favourable treatment; often no or minimal allowances.

Regional differences

Spain’s Autonomous Communities (regions) have considerable leeway in modifying gift/inheritance tax: they can change rates, exemptions, reductions, etc. Some recent examples:

Comunidad Valenciana: Also 99% relief for spouses, children, parents; plus additional allowances.
Madrid: Long-standing very generous reductions (99% for close relations) and recent reforms extending reliefs to other relatives.