Gift Tax in Spain for Foreigners – What You Need to Know

In Spain, gifts of money or property between individuals — even between family members — are subject to gift tax (Impuesto sobre Sucesiones y Donaciones). If you’re a foreigner living in Spain or receiving a gift from someone who is, you may be taxed even if the transfer takes place abroad.

This article explains how Spain’s gift tax works for foreigners, including tax rates, exemptions, and reporting obligations.

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⚖️ When Does Gift Tax Apply?

Gift tax applies when:

• 💸 A person gives money, property, or valuable assets to another individual

• 🏠 A foreigner receives a gift of Spanish property

• 🌍 A gift is made abroad but the receiver is a tax resident in Spain

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📊 How Gift Tax Is Calculated

• Based on the value of the gift

• Tax rates range from 7% to over 30%, depending on:

  • 🎯 The value of the gift

  • 🧬 The relationship between donor and recipient

  • 📍 The Autonomous Community (region) where the recipient resides

💡 Example: In Madrid, children receiving gifts from parents may pay almost no tax, while in other regions, rates can be significantly higher.

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🧾 Declaring a Gift in Spain

1. 📝 Submit a gift tax declaration (Modelo 651)

2. 📅 Do it within 30 working days from the date of the gift

3. 📍 File with the tax authority of the region where the recipient resides

4. 🏛️ If the gift is real estate, the transfer must be notarized and registered

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🌍 Gift Tax for Non-Residents

• If either the donor or recipient is non-resident, tax may still apply

• For example: A non-resident gifting a Spanish property to a resident child

• You’ll need to file with the Spanish central tax authority (AEAT)

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🚫 Common Mistakes Foreigners Make

• ❌ Not declaring family-to-family gifts (even small ones)

• ❌ Thinking foreign gifts are exempt if received in Spain

• ❌ Forgetting that bank transfers are also considered gifts if not repaid

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🛡️ How Borderless Lawyers Can Help

• Determine whether your gift is taxable

• Calculate and optimize gift tax liability

• Prepare and file all necessary documents (Modelo 651, notary coordination)

• Provide guidance for international gift transactions

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📌 Summary: Gift Tax in Spain

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📞 Contact Borderless Lawyers Today

Planning to give or receive a gift in Spain? Borderless Lawyers can help you navigate tax rules and avoid unexpected penalties. Book a consultation now.