Donation Taxes – How to Save Inheritance Tax


Posted and filed under Legal Issues in Spain, Taxes in Spain, Wills, Probate, Donation and Inheritance.

Over the past months, we have written many times about transferring  property in Spain from parent’s names to that of your children as a donation, or early inheritance.

A number of people in the last year have donated their properties to their adult children, as the tax allowances in the Valencia region are currently very generous at 100,000€ tax free per adult child from each parent (as long as not step children and blood relatives) and good in the Murcia region too.

Donation Taxes – To Save Inheritance Tax

Brexit looked as if it would have an impact on the inheritance and donation taxes as once British people are no longer members of the European Union, it appeared that the concessions would no longer be applicable. We advised of this. Fortunately, in recent months the Spanish government appears to have accepted that it will not take away the right to regional favourable allowances to non-Europeans (something that previously looked very likely).

After that threat had passed, another one appeared in that the Valencian government had stated it’s intention to reduce or erase the favourable tax free allowances of 100,000€ per adult child for donations, and inheritances. Our lawyer stated this in June “You probably know that yesterday the region of Valencia elected the new government which will start ruling by September. The new government was the one suggesting to erase all the allowances for donations and probates.  Therefore, we should try to inform our clients about this, as if they can transfer their Spanish property to their children, now is the time to do it.”

How To Inherit Paying Little or No Tax

We can quote the costs for a transfer of the property to your children with hopefully no donation tax currently, with just your deeds and a suma bill.

In summary, this remains a very good time to pass the property on to your children as quickly as possible. If there is no donation tax in your circumstances, it is not going to get cheaper than this.

We keep saying this, but really, there will not be much longer that this huge saving remains. Please contact us to discuss donation or early inheritance to your children.


  • Clive Walley

    I have read somewhere that in the Valencia Region, there is no inheritance tax or donation tax between spouses. Currently, my home is worth around €300,000, is in my name alone and I wish my wife to inherit it on my death. We have been married 11 years and I have a Spanish Will which demands ‘English Law’ as to inheritance. Is this information correct and up to date please? Many thanks.

    • Nicola Ryan

      Good Afternoon Clive,

      Thank you for your enquiry.

      Currently, at the time of writing, in the Valencian region there is no donation tax allowance between spouses, that means if a donation or early inheritance was made, donation tax is paid on the full amount. If you were to pass away currently, then there is a 100,000€ tax free allowance between spouses. So tax would be paid on a sliding scale on the tax value (not market value) of the property above 100,000€. The first thing I would advise is that you make a Spanish Will, with a clause choosing your British nationality to govern the probate.

      If you do not have a Spanish Will, Spain will require UK probate (using the UK Will) for the Spanish probate before it can be completed and the property passed to your wife and that will cost a lot more.

      Property in Spain does not go automatically to spouses if joint owners anyway (although you are a sole owner), a Spanish probate needs doing through the Notary by a lawyer, involving tax office and the Land Registry in either scenario. If you wished to contact our legal team we could help with any questions.

      Kind regards

  • Arthur Jackson

    What would be the inheritance tax payable by my two sons on my property market value of 210000euro in los montesinos 03187.they are resident in UK

    • Amanda Thomas

      Dear Arthur, I think I have replied by email to your enquiry, there would likely to be little at the moment but as we have explained that is likely to change for the worse very soon, due to a pending change in the law, so now would be a good time to pass your property onto them. Kind regards Amanda

  • Jill

    I am intending to make a cash gift of less than 100,000 Euro to my daughter who is resident in Valencia. I will be transferring the money to her UK bank account and providing her with a Gift of Deed plus a copy of my passport for ID purposes and evidence of where the money came from money laundering purposes. So my question is, do I need to provide any other information to her for her to comply with Spanish Law? Thank you Jill

    • Amanda Thomas

      Dear Jill, If the transfer is done in UK, you have to comply with UK regulations. So you need a UK accountant and solicitor. Afterwards, if your daughter brings the money to Spain, she would have to prove where the money comes from, showing the documents required under UK law. We can only help if she is transferring the money from UK to her Spanish bank account. Kind regards, Amanda

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