What Happens When You Sell, Inherit, or Gift a Property in Bilbao?
If you’re a foreigner and you own real estate in Bilbao, it’s essential to understand the legal and tax framework for:
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Selling your property
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Gifting it to family
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Passing it on via inheritance
Bilbao is governed by Basque regional tax laws under the Diputación Foral de Bizkaia, which apply differently than other parts of Spain.
💸 Selling Property in Bilbao as a Foreigner
✅ Legal Steps to Sell:
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Hire a lawyer to review the title and prepare documentation
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Sign a reservation contract with the buyer
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Finalize the sale deed at the notary
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Pay capital gains tax and Plusvalía
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Update the Land Registry and inform the tax authority
💰 Capital Gains Tax (CGT):
| Residence | Tax Rate |
|---|---|
| EU/EEA | 19% |
| Non-EU | 24% |
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Tax applies to the profit (sale price minus acquisition and improvement costs)
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Deductions may apply if you’ve invested in improvements
🏙️ Plusvalía Municipal (Local Tax):
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Based on the increase in cadastral value during your ownership
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Paid to Bilbao city hall
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We calculate it before sale and include it in the closing plan
🔒 3% Withholding Rule (For Non-Residents):
If you’re a non-tax resident in Spain:
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Buyer must withhold 3% of the sale price and pay it to the tax office
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You can later claim a refund (if applicable) based on the real capital gain
🎁 Gifting Property in Bilbao
You can gift your property to a relative (spouse, child, parent) or another party.
👨👩👧👦 Gift Tax (Impuesto de Donaciones):
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Handled by Bizkaia regional law
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Tax rate and allowances vary depending on your relationship to the recipient
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Children and spouses benefit from significant reductions or exemptions
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A public deed before a notary is required
💡 We structure gifts in a way that avoids surprises and minimizes tax.
⚰️ Inheriting Property in Bilbao
When a property is inherited:
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The heirs must accept the inheritance via public deed
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File and pay inheritance tax (Impuesto de Sucesiones)
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Update the Land Registry and Catastro
📜 Who Pays Inheritance Tax?
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Heirs pay the tax — rates depend on their relationship to the deceased
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Bizkaia law offers strong tax breaks for close relatives
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Non-resident heirs may still benefit under bilateral treaties or regional allowances
🌍 Cross-Border Considerations
If:
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The owner or heirs live abroad
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The property was co-owned with a spouse
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The property is passed between non-residents
…then extra care is needed to:
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Avoid double taxation
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Ensure international wills are valid in Spain
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Navigate forced heirship rules if applicable in your home country
💼 We coordinate with notaries and foreign probate lawyers to handle all international issues.
🧑⚖️ Why Work with Borderless Lawyers
Whether you’re selling, gifting, or inheriting real estate in Bilbao, we help by:
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Minimizing your tax exposure
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Handling all notary and registry procedures
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Assisting with refunds and declarations
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Structuring transactions legally for residents and non-residents
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Managing everything remotely if needed
📞 Need Help Transferring a Property in Bilbao?
Let our multilingual team guide you through the process — with full tax clarity and legal peace of mind.