Gift Tax Spain

Many in the UK gift property to children to avoid having to sell said assets to pay for care charges. Is this subject to gift tax in Spain?

Tax implications of making a ‘gift’ of your UK property assets

It has become quite common in recent years in the UK, for those of advanced years and uncertain health, to gift their property in the UK to their children and thereby not be forced to sell said assets to pay for care charges that would otherwise be applicable.

While we do not seek here to deal with the legal ramifications of such actions in the UK, the question does arise with regard to any person resident in Spain who is contemplating making such a gift.  For anyone resident in Spain there are certain considerations to take into account if you want to make a ‘gift’ to a family member or indeed any other individual, of a property you own, that is located outside Spain.

International Treaties

The initial issue to determine is whether or not there is a treaty between Spain and the country where the property is located. In this particular case, between Spain and the UK, we have the “Convention  between  the Kingdom of Spain and the United Kingdom of Great Britain and Northern Ireland for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital”. However,  unfortunately this does not apply to “gift  tax” as it is not included in the article 2.3 of the convention, which states that:

“ The existing taxes to which the Convention shall apply are in particular:

  1. In Spain:

(i)   income tax on individuals;

(ii)  corporation tax;

(iii) income tax on non residents;

(iv) capital gains tax; and

(v)  local taxes on income and on capital.

 

2) In the United Kingdom:

(i)   income tax;

(ii)  corporation tax; and

(iii) capital gains tax.

Location, location, location

The second question to resolve is where to proceed to make the gift. At this stage we note two very different scenarios. The first one would be for the case that you make the gift in Spain. As you may be aware, in Spain there is a tax on gifts. This tax has, of course, some exemptions and deductions depending on the Spanish region where you are residing. However, in this particular case none would be applied since the property is located in a different jurisdiction, so you would be paying the whole percentage that applies according to the value of the property. This means that when you pay the tax you will do so directly to the Spanish tax authority – Agencia Tributaria (AEAT).

The other possible scenario would be to make the gift in the UK where there is not such a “Gift tax” per se. In the UK, the tax system works differently and in the type of scenario envisaged, the gift/donation would be exempt from payment of any tax if the person who is making the gift survives for a period of 7 years following the making of the gift. Otherwise UK inheritance tax would be applicable.

It is also important to note that, when you are a Spanish national or are resident in Spain, any gift of assets located abroad, would have additional tax implications in Spain as your ‘patrimony’ (total wealth) will increase and therefore you are obliged to make account for that. There do exist a couple of options in this regard, and we would be delighted to assist anyone who requires help with such matters, by getting in contact with us.

28 Lawyers Offering Services in Spain

Testimonials for Probate Law
  • Peter Morgan
    Peter Morgan, Mallorca

    Following our father's death, my brother and I asked Rosa to act for us and guide us through the Spanish probate legal process. There were several obstacles and Rosa was always there for us, explaining what was required and liaising with professional bodies e.g. the notary, to ensure that everything was done in a timely manner.


    Rosa also helped us immeasurably when my father’s estate was sold. The pandemic meant that it was difficult for us to travel to complete the sale paperwork but to overcome this Rosa became our Power of Attorney and again liaised with professional bodies e.g. buyer’s solicitors, the notary. Her English is excellent and her patience is inexhaustible. Thank you Rosa.


    Dec 02, 2020
  • Gail Maher
    Gail Maher, Fuengirola

    Hi, I would like to thank Alvaro very much for all his expertise. We had a very long journey from dealing with the inheritance will for my mother's apartment in Torrenueva to dealing with sale of the apartment.


    He was brilliant in every aspect. Nothing too much trouble. Very professional and would definitely recommend him to anyone in the future.


    So a big thank you and wishing you to continue delivering an excellent service. Regards Gail Maher


    Oct 21, 2020
  • Johanna Count
    Johanna Count, Benidorm

    Consuelo explained and took care of everything. She is easy to get in touch with and a pleasure to deal with.


    Having to deal with Spanish probate laws and procedures was overwhelming but Consuelo made it so straight forward.


    Oct 07, 2020
  • David Stevens
    David Stevens, Seville

    Rafael has provided us with excellent service for us as we relocated to Spain. He guided us through the NIE application and subsequent switch to TIEs. He assisted us through the process of our house purchase and also helped us with our wills.

    We found his help invaluable. His approach was friendly and professional throughout. We would recommend him to anyone looking for English speaking legal services.


    Sep 21, 2020
  • Robert Anslow
    Robert Anslow, Alicante

    Jose was fantastic he really made a difficult job straight forward I would recommend him to anyone


    Sep 21, 2020
  • Stephen McCool
    Stephen McCool, UK

    José was attentive and sympathetic throughout in his dealings with my brother (in Australia) and me (in the UK).


    Ours was a problematical case which involved José making contact with a Spanish notary and subsequently applying for NIEs for us and acting Power of Attorney. After this he was involved in protracted negotiations on our behalf with a particularly unhelpful Spanish bank in the matter of inheritance.


    He was a calming influence when needed and never less than professional. He kept us fully informed at all times.


    Jul 29, 2020
  • Michael Armstrong
    Michael Armstrong, La Manga del Mar Menor

    Consuelo has the highest praise and gratitude from this family by somehow reclaiming inheritance tax from Madrid. Previous solicitors left a mess,partial/incorrect and missing documents were received very late.


    Despite obstacles such as denial from tax office and virus Consuelo promptly, courteously and professionally simply got on with the job and succeeded against all odds. We cannot thank her enough!


    Jul 27, 2020
  • Yolande Van-de-l'Isle
    Yolande Van-de-l'Isle, London

    Jose understood my needs and was able to do all the things that I needed. He was extremely approachable and did everything necessary.


    I understood what he was doing and what was required of me to do. I was also very happy with the price paid.


    Jun 29, 2020
  • Abbie Orsini
    Abbie Orsini, England

    Rosa responded efficiently I was extremely happy and satisfied with this !


    She explained everything I needed to know and more to help me understand. At the beginning I found the process daunting Rosa took this feeling way and helped me feel at ease.


    Paying was straight forward and I was well informed with fees etc. Rosa took a very professional approach and I felt comfortable approaching her about any issues I had.


    She is a credit to advocate abroad !!!!! Thank you for your help !!!!!!!!!❤️


    Jun 18, 2020
  • Jonathan Mackay
    Jonathan Mackay, Jaca

    Francisco was extremely professional and answered our many questions promptly and clearly, both by phone and email. We feel very lucky to have had Francisco handle our Spanish Fiscal declaration.


    The service was perfect, and we are very happy with the whole process.


    Mar 12, 2020
  • Gail Maher
    Gail Maher, Torrenueva

    Alvaro is brilliant.


    He comes across very professional and friendly,nothing too much trouble.


    As I was unable to go to Spain initially all communication was via phone and was put at ease straight away as he understood exactly what was required to deal with my case, and all went exceptionally well. I was able to meet Alvaro in August to pass over documents required and made me very welcome.


    I have been so pleased with everything I have now engaged him on a further instruction on our property in Torrenueva..


    Dec 11, 2019
  • Andrew Hales
    Andrew Hales, Fuengirola

    We dealt with Angela, and had a superb service - she was efficient, clear, timely and exceptionally helpful. We would recommend this respectable Solicitor who has excellent English.


    Trustworthiness is so important, and step by step help was very much appreciated. Thank you Angela of myAdvocate Fuengirola.


    Oct 23, 2019
  • Luis Gonzalez Lunden
    Luis Gonzalez Lunden, Canada

    Rosa responded very promptly to our inquiry, grasped our needs immediately, and provided an excellent solution which was delivered seamlessly. Rosa thoroughly explained the intricacies of the local legal system, providing options and considerations.


    Overall Rosa provided outstanding service through a professional and mindful approach to our needs. We really enjoyed our interaction and it is without hesitation that we recommend her to future prospective clients. Thank you Rosa!


    Sep 21, 2019
  • Mr Swildens
    Mr Swildens, Alicante and Belgium

    I'm very happy with the services received: I started with José in Alicante on various subjects whom than handed me over to Miguel for another case because he said Miguel was much more experienced in the field I needed assistance, I can appreciate professionals knowing their business.


    In the beginning when I started emailing with your good selves I experienced difficulties receiving mails from advocate abroad, it was a server issue from advocate abroad, I repeatedly asked Miguel and José about it but they could not find anything wrong. At this moment I no longer experience these problems.


    Sep 20, 2019
  • Isabel Albert
    Isabel Albert, Valencia

    Inmaculada has always responded to all my queries and explained and provided excellent solutions. She is very approachable, diligent and professional.


    Sep 17, 2019
  • Ole Sørensen
    Ole Sørensen, Lanzarote

    Fast and good follow up by Erardo.


    Jul 30, 2019
  • Irene Hyde Christie
    Irene Hyde Christie, Coin

    I am very pleased with the service provided by Francisco. He has been most helpful and responded very quickly to all my emails.


    Jul 26, 2019
  • Franco Trio
    Franco Trio, United Kingdom

    Rosa always responded promptly to any email I sent.


    She kept me informed and provided alternatives and 3rd party services (translation).


    Thank you Rosa for your assistance, perseverance and honesty in helping my mum and I. We will definitely recommend you.


    Apr 10, 2019
  • Claire
    Claire, Valencia

    Ramon was very helpful and professional. He listened to our requests carefully and we will be using him again if we need anymore legal services.


    Mar 28, 2019
  • Colin Johnson
    Colin Johnson, Sevilla

    Very helpful, especially as English and Spanish law has it's differences and my final document - a testament -  required the services of a notary and the final translation.


    A pleasure to meet Rafael and to discuss my needs and he made the whole process straightforward with lots of common sense solutions. ***** 5 stars and highly recommended.


    Mar 15, 2019
  • Gary Moore
    Gary Moore, Gandia

    Fransisca is 1st class and very professional and extremely caring


    Mar 12, 2019
  • Gary Moore
    Gary Moore, Gandia

    Francisca is a first-class Professional ' puts u at ease.


    100% up to date and reliable.  I would not consider using anyone else.


    Feb 28, 2019
  • Marcus Bond
    Marcus Bond, Fuengirola

    Proactive, great communication, thoroughly recommend.


    Feb 14, 2019
  • Alison Hamilton
    Alison Hamilton, Fuengirola

    Kept us informed every step of the way, very efficient and very pro active.


    Absolutely excellent!


    Feb 12, 2019
  • Michael Bates
    Michael Bates, UK

    Francisco was very easy to deal with. Very professional. Would not hesitate to recommend him to friends.


    Jul 27, 2018
  • Patrick Crean
    Patrick Crean, Almerimar

    Juan was fantastic. Very easy to understand and very pleasant. I would definitely use his service again.


    Jul 05, 2018
  • Nigel Bateman (Fuengirola)
    Nigel Bateman (Fuengirola)

    Excellent service, very reasonable, fluent English and totally professional. I would not hesitate to recommend this highly skilled team.


    Apr 09, 2018
  • John Crompton
    John Crompton, UK

    Very satisfied with the service that Oliver provided.


    Oliver was professional, approachable and his fees were very reasonable.


    I will definitely use his services again!


    Nov 25, 2017
  • Sarah Finnagan
    Sarah Finnagan, England

    Francisco was fantastic and helped me through every single step and helping understanding everything.


    Price was very reasonable i have no complaints at all.


    Very easy to get hold of and very quick at responding would definitely go back to him - thankyou so much Francisco for everything.


    Sep 21, 2017
  • Michael Tenerife
    Michael Tenerife, UK

    Rosa excelled in all of the criteria listed for evaluation.


    Extremely responsive, understanding, professional, and offered great value for money. Rosa explained the situation clearly and provided the clearest solution every time.


    I just can't imagine how Rosa could have done more. Truly excellent service.


    Aug 07, 2017
  • Aziz Oudjida
    Aziz Oudjida, Mijas Flores

    We couldn't have hoped for better lawyer than Mr Francisco. He is always responsive, always available and approachable, with a remarkable ability to explain and provide legal solution. But more important, he strikes me as a very good and genuine person, honest and very competent.


    I can say without a doubt in my mind that Mr Francisco stand well above all these lawyers.


    Jun 02, 2017
  • Richard Anthony Poole
    Richard Anthony Poole, Johannesburg, South Africa

    Very responsive, very understanding, value for money, has a great ability to explain and provide the appropriate legal solutions, very approachable and very professional in dealing me.


    May 03, 2017
  • Mrs. J.B.
    Mrs. J.B., Cordoba

    Welcoming manner and kind comments about the fact. Extremely approachable.


    Highly competent understanding of and patient explanations regarding my many questions.


    Very fairly priced to do with the making of a Will.


    Jan 12, 2017
  • AS
    AS, Denmark

    Jose was very helpful, always happy to assist.


    I am very satisfied the service provided by my lawyer.


    Dec 08, 2016
  • Diana Rawstron
    Diana Rawstron, London

    Domingo provided an excellent service on this matter and I was very pleased that I had found him through your website.


    I definitely use the same lawyer again in the future.


    Nov 03, 2016
  • AD
    AD, Alicante

    Jose gave me information on tax implications of different inheritance options, with forms, figures and useful advice for the future.


    He was very friendly and approachable, I would you use the same lawyer again in the future.


    Oct 15, 2016
  • Mrs. Irene C Price
    Mrs. Irene C Price, Acton Trussell

    It was a pleasure to deal with Francisco. He spoke excellent English. He was professional and courteous at all times, and responded to any queries I had by return, taking time to explain complicated legal procedure in a manner I could understand.


    For the work Francisco did, his charges were good value for money. I would recommend his services without hesitation.


    Oct 12, 2016
  • JMH
    JMH, Mallorca

    I was able to talk things through and my lawyer was able to help me find solutions and alternatives to my problems without it costing a fortune but providing me with what I needed.


    Rosa was very approachable and professional.


    Oct 11, 2016
  • Caroline & Kevin
    Caroline & Kevin, UK

    Alvaro was approachable, reliable and his instructions were clear. He was easy to communicate with and we felt he had our best interests at heart.


    His English is excellent and he offered excellent value for money.


    Sep 02, 2016
  • AHJ
    AHJ, Alicante

    I found José personable, articulate and very helpful.


    Almost all reasons for going to a lawyer are stressful but I found his manner and advice made the process of my divorce straightforward and without complications.


    Mar 07, 2016
  • M Breeze
    M Breeze, Nuneaton

    Very satisfied with the service.


    Erardo was extremely helpful – he couldn’t have done more. I will definitely use his services in the future.


    Feb 25, 2016
  • Brian Thomas
    Brian Thomas, Priego

    A very fast response to my inquiry, Francisco has excellent English and gave us a very friendly and professional service that we feel was value for money.


    We do recommend him to our friends.


    Oct 31, 2015
  • Peter H David
    Peter H David, Mallorca

    Rosa could not have been more helpful and professional in providing us with what we needed accomplishing in very short space of time.


    We will certainly be in touch with her again the next time we need legal service.


    Oct 30, 2015
  • John Fitzpatrick
    John Fitzpatrick, UK

    Outstanding advice and service Jose was polite courteous and responsive and very sensitive in dealing with my fathers complex bereavement case.


    Jun 29, 2015
  • Neil Coates
    Neil Coates, Mallorca

    Our lawyer listened attentively to what we wanted, was pleasant and efficient. There were no linguistic problems.


    Although I speak some Spanish, all our business was conducted in English.


    I was very satisfied with the service provided.


    Feb 13, 2015
  • James Charles
    James Charles, Denia

    Jose-Antonio was extremely helpful, couldn't have done more.


    In terms of responsiveness, understanding, value for money, ability to explain and provide appropriate legal solutions, I would give him top-marks on all.


    Jan 20, 2015
  • Susan Basham-Gamble
    Susan Basham-Gamble, Wokingham

    My lawyer was very helpful and professional giving a personalised service and nothing was too much trouble. All questions and queries were answered fully.


    Excellent value for money and good advice given throughout. Will definitely use his services again.


    Nov 09, 2014
  • NW
    NW, London

    My lawyer was extremely helpful, couldn't have done more. I was very satisfied with the service provided.


    His English was of a sufficient level and I found him to be personable and professional.


    Oct 28, 2014
  • AS
    AS, Brussels

    My lawyer spoke English more or less fluently and was very helpful.


    He responded quickly to my request, understood the issues concerned and provided understandable and useful advice. A clearer pricing structure would have been helpful.


    However, I was satisfied with the service and would definitely use this lawyer again.


    Oct 23, 2014
  • Evelyn Lindsay
    Evelyn Lindsay, Aberdeen

    As I am elderly and do not speak Spanish I found the service I received was excellent, everything explained in easy, understandable language and Rosa’s English was fantastic.


    Also the cost was very reasonable as I am only on a state pension. In the future if I need any legal advice I will contact her again.


    Sep 15, 2014
  • Keith & Sandra Brown
    Keith & Sandra Brown, Villaviciosa

    Our lawyer was friendly and helpful with a very good command of the English language.


    Even payment for their services could be paid, by bank transfer, directly into their nominated bank account.


    We would definitely use their services again whenever necessary.


    Aug 07, 2014