What are the benefits of making donations?

The recipient of the gift pays Spanish inheritance and gift tax. It is a state tax devolved to the autonomous communities, and each one sets its own reliefs, reductions and rates.

The difference between them is considerable. Several communities relieve 99% or 100% of the tax on gifts between parents, children and spouses, so the cost is close to nothing. Others do not offer relief but apply their own rates, well below the state scale. Some condition the benefit on value limits or specific requirements.

One requirement recurs almost everywhere: the gift must be formalised in a public deed. Without it the relief is lost, or the general scale applies, which is considerably more expensive. Gifts of money usually also require the source of the funds to be stated in the deed.

With no regional relief, the state scale runs from 7.65% to 34% depending on the value gifted, the family relationship and the recipient's existing wealth.

Check the page for your autonomous community to see which regime applies, or write to us with your case.

The online donation process with Notaría Online is completed in approximately 48 hours from the receipt of the complete documentation:

• Day 1: Receipt of documentation, analysis of the situation, and drafting of the deed by our legal team.
• Day 2: Videoconference with the notary and signing of the deed by the donor and donee.

The subsequent procedures (settlement of the donation tax and registration if there are real estate properties) take additional time, usually 2-4 weeks.

Money donations (manual donations) do not require a notarial deed according to article 632 of the Civil Code. They are perfected with the simple delivery of the money.

However, it is highly recommended to formalize them before a notary when:

• The amount is significant
• One wants to leave authentic evidence for future inheritances (the donation may count as an advance on the legitimate portion)
• One wants to document the origin of the money for the Tax Authority
• The donee needs to justify the origin of the funds before the bank

Donations of real estate do require a notarial deed obligatorily (art. 633 CC), under penalty of nullity.

Yes. Donations made during one's lifetime can affect the distribution of future inheritance in several ways:

Collation: Forced heirs (children and descendants) who receive a donation during the donor's lifetime must "collate" it (count it as an advance on their inheritance) unless the donor has expressly dispensed them from it in the deed.

Reduction of inofficious donations: If lifetime donations harm the legitimate share of forced heirs, they can demand the reduction of such donations to cover their legitimate portion.

At Notaría Online, we advise on how to structure donations to minimize future conflicts in the inheritance.