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In 2014 the Court of Justice of the European Union pronounced a judgment that eliminated the discrimination that existed between residents and non-residents in the field of Gift & Inheritance Tax in Spain.

Each region in Spain has different allowances for Gift & Inheritance Tax. However, before the Court of Justice judgment, non-residents could not benefit from them. Non-residents were liable to pay high Inheritance Taxes, which in most cases reduced considerably the Estate inherited.

Since 2015, non-residents can take advantage of the same allowances than Spanish residents. For instance, in the Autonomous Region of Valencia, there is currently an allowance of €100.000 per heir / recipient of the gift. This applies to assets located in this region, when the heirs are immediate family, this means, parents, children, grandparents or grandchildren, irrespective of whether they are Spanish residents or not.

Therefore, it is important to compare the inheritance process with the gifting process, costs and expenses involved, and analyse these two options. The current conditions are quite advantageous, and we do not know what the future will hold in terms of inheritance.

As solicitors specialising in Inheritance Law in Spain, we would recommend you to consider the possibility of gifting property to your future heirs; this may save your beloved ones trouble, time and money in the future.

Should you have any further questions related to this topic, please do not hesitate to contact us. We will be pleased to reply to your queries with no obligation on your part.

This Post Has 3 Comments
  1. Hi,

    My aunt is a citizen of Belgium (the only one in our family that is an EU citizen) of single and childless status. She owns a small house in Valencia and would like to me to have it by gifting me that instead of me inheriting it after she passes.

    *I am not sure about the inheritance laws in Spain or Belgium, but I am not the closest kin in terms of inheritance order according to the laws of our country (also her birth country).

    Here are my questions.

    1. How can my aunt gift her house in Spain to a non-EU citizen? How does she designate that person (i.e. me)?

    2. What are the qualifications or preparations that I ought to meet or make beforehand? For example, a document to prove my net worth, a local bank account with deposits up to certain amount, etc.

    3. For all legal procedures, is it necessary that we both have to be in Spain together during the whole time? Given the inconvenience of travelling in the midst of ongoing pandemic, is there anything we can do online first, especially on my part?

    I realize this is a complicated scenario, so it’d be much appreciated if a couple websites on this subject are pointed to me. Preferably in English as my Spanish is at elementary level.

    Thank you, and have a wonderful day.

  2. What would be the tax to be paid? Dear reader, thank you for your legal advice request. As per the recent changes, it is true that the donation and gift is often the most tax efficient way to transfer a property in Spain to our family.

  3. Maybe to avoid inheritance tax, as part of a divorce settlement or merely out of the goodness of your heart. Unfortunately, transferring or gifting Spanish property is not as straightforward as it may initially seem and you will need to consider the effect of transferring your Spanish property. The amount of Spanish taxes payable when transferring Spanish property should be given proper consideration as this might affect the way in which you decide to structure the transfer of your property in Spain or if you decide to proceed at all.

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