Case Study – Transferring a Spanish Property to Your Children

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Earlier today we had a customer asking about transferring their property to their two children now as a lifetime inheritance.

This is how we wrote to them for anyone considering the same issue in the Valencia region.

“I understand that you were speaking to Nicola earlier today about the costs involved in transferring a property in Spain from your joint names to that of your two sons as a donation, or early inheritance.

She mentioned that the property is in Orihuela Costa and is worth about 170,000€, I believe, market value.

We have had a number of people approach us in the last year to deal with donating their properties to their adult children, as the tax allowances in this Valencia region are currently very generous at 100,000€ tax-free per adult child.

Thus in this case, although it is calculated on tax value of the property, not market value, as long as the tax value is less than 200,000€, and you have two children, then there would be no donation tax to pay, only costs. Of course, we cannot get better than no tax, which is why it is a good time to transfer a Spanish property in this area to your children if you are thinking of it.

There will still be Notary fees, Land Registry costs, Solicitor fees, a town hall tax called plusvalía which is small and a few other minor things. We can calculate these for you if you could please scan and email us a copy of your deeds and your last SUMA (IBI) bill as this shows the cadastral value (from which we can calculate the tax value). We can give you the costs for free within a couple of days.

We would also need to know if your two sons have NIE numbers and if you would all come to Spain for completion or would need to do powers of attorney at home if we send you the draft?

This would allow our solicitor to do everything without you having to fly here to be at the Notary for completion.

Timewise, once someone decides to go ahead, we need to make sure everyone has NIES, calculate the costs, the clients pay 10 days before completion and the only thing that generally delays the process is getting the powers of attorney executed, as if done in another country they need sending away for a Hague Apostille for international use, whereas if done in Spain they are in the format already for Spanish use. So it can be from a few weeks to a couple of months at the most.”

If you are in the same situation, then please contact Amanda on enquiries@spanishsolutions.net and she will be happy to arrange for the costs to be calculated for you. Taking action now could save your children a great deal of future inheritance tax.

Please contact Amanda if we can help regarding the above.

20 Comments

  • Denise

    Hi my name is Denise I have 5 adult children can I transfer my property to all of them they have no NIE numbers ,how will they go about getting a NIE number .

    • Nicola Ryan

      Good Morning Denise,

      Our Paralegal Amanda will contact you directly, via email, to discuss this matter further.

      Kind regards
      Nicola

  • Gracie Abbott

    Good afternoon,

    My farther is looking to gift me his property in Andalucia, what documents will i need to fill out in order to do this and will I need anything else.

    Thank you.

    Gracie

    • Nicola Ryan

      Good Morning Gracie,

      Amanda, our paralegal, will be in contact with you via email to discuss this matter further.

      Kind regards
      Nicola

  • Simon Ferris

    Good day. My parents jointly own a property in La Cala de Mijas. They would like to transfer the property to me, gift early inheritance etc. The market value is approximately €150,000. I do not have a NIE number. Which is the most cost effective way. They are not seeking to sell it to me.
    Kind regards
    Simon

    • Nicola Ryan

      Good Morning Simon,

      The NIE can be done as part of the donation, so no need to worry about that.

      Amanda, our paralegal, will be in contact with you via email to discuss this matter further and answer any questions you may have.

      Kind regards
      Nicola

  • Kes Devine

    Hi, My brother is in the UK and very ill, if we give power oa to you to gift hus property to his daughter, how long would this process typically take? Thanks

    • Nicola Ryan

      Good Morning Kes,

      We are sorry to hear your brother is unwell.

      Amanda, our paralegal, will be in contact with you directly to discuss this matter further. In the meantime should you need any further assistance, please do not hesitate to contact us.

      Kind regards
      Nicola

  • Frances Menkenrick

    My husband and myself would like to change our property in Estepona Spain to our 4 children as we no longer travel there. Is this possible

    • Amanda Thomas

      Dear Frances, Yes it is, there will be costs and I can provide a breakdown if you can email me the deeds, suma/IBI bill for this year or last year to sales@spanishsolutions.net Thanks Amanda

  • Robert Haswell

    We live in Spain, our property is worth around 100000euros and our property tax last year 141.91 how much would it cost to transfer to my son who lives in Spain.

    • Amanda Thomas

      Hi Bob, I need information on your deeds and on the actual property tax bill to be able to work it out. Also to know where you are in relation to your son in Spain (can you all go to the Notary together or do we need power of attorney). Please can you email the deeds, the property tax bill and also can I have your ages please, to sales@spanishsolutions.net and we can very quickly do the breakdown of costs for free. Kind regards Amanda PS. Also is there a mortgage?

  • Howard Mellor

    My elderly parents who live in the UK wish to transfer ownership of their Spanish apartment, valued at around 120,000 euros on the Costa Blanca into my name , their son. What procedures are required and expected costs? Thank you

    • Amanda Thomas

      Dear Howard, This process known as donation is a transfer by a legal deed through the Notary, Land Registry and Tax office. There are fees for those and for our lawyer also. I will email you in detail on this process, Kind regards Amanda

  • Clare McMenemy

    My parents are looking to donate their property on the Costa Blanca to myself and my 2 sisters – we each have NIE.
    Value of the property is circa 320,000 Euro but approx 275,000 tax value.
    what I need to understand is the capital gain tax position, is it paid in Spain or UK? And given Covid, and inability to travel can transfer be done in UK or does it need to be done in Spain? And is there any time issues – both parents are – 82 and 78 – ie they need to survive a certain number of years after donation.
    I look forward to hearing from you

    • Amanda Thomas

      Dear Clare, Firstly, capital gains tax:- Capital gain tax is paid only when a there is a gain.Normally there is no gain in donations, unless there is a mortgage on the property. Moreover, as your parents are non-residents in Spain, they pay capital gain tax only when they have a gain, and this is not the case in donations. But you need to check the situation in the UK as we cannot advise on tax there. Also it has to be done in Spain, but can be done with power of attorney. We send the draft/s to a local Public Notary to you, your sisters and your parents. You do not need to come. No, there is not this rule for the Spanish side of the transaction about surviving, although we hope they do. The time problem is that we expect the generous tax allowances to be erased at the end of the year, so this is now very urgent as it will take about a month to send power of attorney and get it apostilled by the Notary office, once costs are accepted. So we are working very fast on donations, as doing it now could save more than 10 thousand from next year in many cases and in your case probably higher. If you can email the deeds and suma/IBI then I can send you the breakdown of costs, Kind regards Amanda

      If he sends us the SUMA and the Deeds we can make a proper calculation using the real values.

  • Andy.holmen@gmail.com

    Dear Amanda,
    We would merely like to add our daughter to our Spanish property so we are all 3 in the family on the deed.
    We all have NIEs , that would not be too complicated?
    Please elaborate, the property is in the province of Granada, tax value ca: 84,000 euro, property value ca: 225,000 euro.
    Any additional ongoing costs after deed add on transaction is completed?

    • Amanda Thomas

      Good morning Andy,
      I am going to send you an email on this one, as I need a bit more information first to quote. Kind regards Amanda

  • Tracey Prosser

    Our Uncle is looking to transfer his small property in Denia to myself & my husband (his nephew), with a reserved usufruct for life.
    We both have NIEs but are non resident – our Uncle has been resident for over 30 years.
    Could you give me some idea with regard to the fees / taxes we will have to pay in order to transfer the property to our ownership.
    The cadastral value of the property was 110,000 euros – taken from inheritance documents when our Aunt died last year & her estate transferred to our Uncle.
    My husband has power of attorney over his Uncle’s affairs (Spanish power of attorney) so I guess that he will have to use this to sell the property to us & we will need one in Spain to enable someone to purchase on our behalf during the current Covid lockdowns.
    Could you comment & advise please – many thanks in advance…

    • Amanda Thomas

      Good morning Tracey, I will email you directly on this With kind regards, Amanda

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