Gift tax in Spain: one tax, 19 sets of rules
Gift tax is regulated at national level by Law 29/1987 and the Regulations approved by Royal Decree 1629/1991. But the autonomous communities have the power to modify rates, reductions and allowances. The result is 19 different regimes: 15 common-regime communities, plus the Basque Country (three historic territories) and Navarre.
The tax is paid by the recipient. It is filed in the community where the recipient lives, unless the gift includes property, which is taxed where the property is located.
How the tax is calculated
The calculation follows these steps:
- Tax base: actual value of the donated assets.
- Reductions: for kinship (Groups I to IV), disability, main residence or family business. Result: net tax base.
- Gross tax: the progressive rate (national or regional) is applied to the net base.
- Multiplier coefficient: depends on kinship and the recipient's pre-existing wealth. Ranges from 1.0000 (Group I, low wealth) to 2.4000 (Group IV, high wealth).
- Tax payable: gross tax multiplied by the coefficient.
- Allowances: the community may discount a percentage of the tax. Result: what you pay.
National rate (default)
Communities that have not approved their own rate apply the national one. Brackets range from 7.65% (up to €7,993.46) to 34% (over €797,555.08). It is a progressive rate with 16 brackets.
Table by autonomous community
Madrid. 99% discount on the tax for Groups I and II (parents, children, spouse, grandparents, grandchildren). No additional requirements for cash gifts with a public deed. Effective real rate: below 0.2% for most family gifts.
Andalusia. Full exemption for Groups I and II up to €1,000,000 per recipient. The excess is taxed at the national rate. No allowance for Groups III and IV.
Catalonia. Own reduced rate for Groups I and II: from 5% (up to €200,000) to 9% (over €600,000). No tax discount. €60,000 reduction for under-33s using the gift for a main residence. For Group III, rate from 7% to 32%.
Valencia. 99% discount for Groups I and II since May 2023. For Group III, 50% discount. Group IV with no discount.
Castile and Leon. 99% reduction on the base for gifts to descendants. Requirement: keep the assets for 5 years. For family businesses, 99% reduction with no limit.
Castile-La Mancha. 100% discount for Groups I and II on gifts up to €300,000. Above that amount, 95% discount. Family gifts are effectively tax-free.
Aragon. 65% discount for Groups I and II. 100% reduction for family business and agricultural holdings donations. For a €200,000 gift, the real cost is around €5,000.
Galicia. Reduced rate for Groups I and II: from 5% (up to €200,000) to 7% (over €600,000). No additional discount. €60,000 reduction per child under 25.
Murcia. 99% discount for Groups I and II. Similar result to Madrid and Valencia.
Extremadura. 99% discount for Groups I and II for gifts to descendants under 21. For Group II aged 21 or over, 95% discount.
Asturias. No general discount. National rate applies. 95% reduction for family businesses and agricultural holdings. Pure cash gifts between parents and children are taxed at the full national rate.
Cantabria. 100% discount for Groups I and II on gifts up to €100,000 if used for housing, starting a business or training. Outside these cases, national rate applies.
La Rioja. 99% discount for Groups I and II. No special requirements.
Balearic Islands. Own rate: from 7% to 34% for Groups I and II. 57% discount for Group I. No discount for Group II, except for family businesses (95% reduction).
Canary Islands. 99.9% discount for Groups I and II. Family gifts in the Canaries are virtually tax-free.
Regional tax regime: Basque Country and Navarre
Alava. Flat rate of 1.5% for Groups I and II. Exemption for gifts of up to €400,000 for a main residence.
Biscay. Flat rate of 1.5% for Groups I and II. €400,000 exemption for home purchase by under-30s.
Gipuzkoa. Flat rate of 1.5% for Groups I and II. Reductions for main residence and family business.
Navarre. Flat rate of 0.8% for direct ascendants and descendants. 8% rate for collaterals. Gifts from parents to children are the cheapest in Spain: €800 per €100,000 donated.
Multiplier coefficients
The multiplier coefficient increases the tax according to kinship and the recipient's prior wealth:
- Groups I and II, wealth up to €402,678.11: coefficient 1.0000.
- Groups I and II, wealth from €402,678.12 to €2,007,380.43: coefficient 1.0500.
- Groups I and II, wealth from €2,007,380.44 to €4,020,770.98: coefficient 1.1000.
- Groups I and II, wealth over €4,020,770.98: coefficient 1.2000.
- Group III: from 1.5882 to 2.0000.
- Group IV: from 2.0000 to 2.4000.
Most communities maintain these national coefficients, although some have reduced them for Groups I and II.
Deadline and tax form
30 business days from the deed. Model 651 (self-assessment). Some communities allow online filing; others require in-person or through a tax agent.
If you need to process a gift, at Notaría Online we prepare the deed and guide you on the tax filing in your community. You can also read our guide on how to donate money to your child while reducing taxes.