One of the most common misconceptions among our Nordic and international clients concerns lifetime gifts of Spanish property. Many parents who wish to transfer their home to their children during their lifetime assume that the only tax involved is the Gift Tax (Impuesto sobre Donaciones) paid by the recipient. This is incorrect. Spanish law treats every donation as a disposal for income-tax purposes, which means the donor must also declare and pay tax on any capital gain — even though he or she received no money in return.
Why is the donor taxed?
Articles 33–36 of the Spanish Personal Income Tax Act (LIRPF) for residents, and article 13 of the Non-Resident Income Tax Act (LIRNR), treat a gift as equivalent to a sale. The tax is calculated on the difference between the acquisition value (the price paid when the property was purchased, plus taxes and incidental costs) and the transfer value (the market value on the date of the gift, typically the value declared in the deed). The fact that no money has changed hands is irrelevant: the State considers that the gain has been realised at the moment ownership is transferred.
A practical example
Suppose you bought your apartment in Alfaz del Pi in 2008 for €150,000, plus €15,000 in taxes and notary fees. Your acquisition value is therefore €165,000. In 2026 you decide to donate the property to your son. The market value at the date of the gift is €250,000. The taxable capital gain is €250,000 − €165,000 = €85,000.
For a Swedish donor who is a non-resident in Spain, the EU/EEA savings-income brackets apply: 19% up to €6,000, 21% between €6,000 and €50,000, 23% between €50,000 and €200,000, and 27% above €200,000. The resulting tax on the gain above is approximately €17,970, payable by the donor via Modelo 210 within four months of the date of the gift.
And the recipient’s tax?
On top of that, the recipient pays Gift Tax under the rules of the Autonomous Region where the property is located. In the Valencian Community, since 2023 there is a 99% rebate for gifts between parents and children, which keeps the recipient’s bill low — but this rebate has no effect on the donor’s capital-gains tax, which must be paid in full.
The famous over-65 exemption (does not apply to non-residents)
Spanish law exempts the capital gain when a person aged 65 or over transfers their habitual residence. However, this exemption only applies to tax residents in Spain. For non-residents the tax applies in full, regardless of age or family relationship with the recipient. This is one of the most important distinctions to bear in mind when planning intra-family transfers.
Calculate your tax
👉 Capital gains tax calculator
With our free calculator, you can estimate in seconds the capital-gains tax that a gift of your Spanish property would trigger, based on the original purchase price and the current market value.
Our recommendation
Donating a property in Spain is often a sensible idea, but it must be planned with both taxes in mind: Gift Tax for the recipient and Capital Gains Tax for the donor. In some cases a will or a marital-property arrangement is more advantageous; in others, the lifetime gift is clearly the better option. We analyse each family’s situation and set out every alternative with precise figures before any decision is taken. Get in touch and we will review your specific case.
Contact us:
Email: info@colas-abogados.com
Phone: +34 629 549 430
Web: www.colas-abogados.com