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Until recently, donating real estate to a relative or friend was a pretty unusual practice in Spain. In 2021, just 8,713 homes were gifted to loved ones, a drop in the ocean within the property market in general.

 

However, a real change has come about since several regions like Andalucía and Madrid have adopted new tax laws which suppress inheritance and gift tax, making it a lot cheaper to donate a property.

 

Receiving a property as a gift is very different to inheriting one, since in the case of a donation both parties are still alive. Nevertheless, both are governed by the Inheritance and Donation Tax Law and in Spain, both the donor and the beneficiary will have to pay some expenses.

 

 

 

 

 

 

 

The experienced team at Abad Abogados will gladly assist you to re-arrange your property ownership by way of gifting it.

 

Voted Best Lawyer in Tax Law for 2024, the English-speaking law firm has 25 years of experience and offices are conveniently located in some of the busiest expat areas of Spain.

 

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