Last updated on March 19th, 2020 at 03:11 pm.
Some people make a choice that they would rather donate their property in Spain to family or friends rather than pass it on as inheritance when they die. Taking this decision needs careful consideration. However, if it is your preference then it can be done for property in Spain through making a ‘Donación de bienes’; a gift from the donor to the donee.
The process of donating still requires that a new title deed is signed. The new owners of the share of the property must be officially recognised and this must be done in front of a Notary.
Changes to donation tax
There is some good news for non-residents who wish to donate Spanish property. A recent EU ruling has meant that Spain has had to modify its laws in order to agree with European law. The modified law was passed on the 28th November 2014 and is applicable to all donations made in Spain after 1st January 2015.
As a result of this, all non-residents living in Europe will be able to choose to apply the law of the region as though they were residents. This means that the distinction between the resident and non-resident donation tax has now been removed. This can amount to significant savings on donating in comparison to previously.
For example, for a non-resident living in the UK with property in the Comunidad Valenciana, if the donation is made between parents and children it could mean that there is no Spanish donation tax to pay at all. This could make it desirable to transfer property sooner rather than later.
If you are interested in donating property, kindly contact our legal department by email email@example.com.