If you live in Spain and receive a donation from abroad, whether it is money, real estate or any other asset, you must comply with certain legal and tax obligations in Spain. The Tax on Inheritance and Donations (ISD) in Spain regulates this type of transmissions and allows that the autonomous communities decide on tax credits, reductions and tax rates.
In this post we explain first the steps you will have to follow, and then if you will have to pay taxes or not for receiving a donation.
1) Acceptance of the donation and documentation
The first step is to formally accept the international donation. Depending on the country of origin, a notarized document or a private contract may be necessary. It is important to keep all documentation proving the transfer (deeds, bank statements, certificates, valuations, etc.). In some cases, it will be necessary to legalize these documents or translate them into Spanish in order to present them in Spain.
It is possible that the acceptance of the donation will have to be done in the country of origin. In that case, if you are not willing or able to travel, you will have to make a power of attorney before a notary in Spain. Thus, a relative or friend will be able to sign on your behalf in your country. More information on our website: How to make a power of attorney in Spain for use abroad.
2) Donation Tax Return in Spain
Even if the property or money is located abroad, if you are a tax resident in Spain, the donation is subject to Spanish Gift Tax.
- You must file Form 651 with the tax authorities of your autonomous community.
- The deadline is 30 working days from the acceptance of the donation.
- Each autonomous community establishes different reductions and allowances, which can considerably reduce the tax payable, especially in the case of donations between parents and children or spouses.
The presentation of the Inheritance and Gift Tax is mandatory in all cases, even when the result is that there is no tax to pay, either because of regional tax exemptions or because of being within the minimum exemptions.
3) Declaration of assets abroad, Form 720
If the donation includes assets located outside Spain and their value exceeds 50,000 euros, you must report them in the Form 720. This does not imply paying an additional tax, but its omission can lead to significant penalties. If the assets you receive as a donation are brought to Spain before December 31 of the same year, it is not necessary to file the Model 720.
You can find more information in our post Declaring assets abroad (Form 720): guide for residents in Spain
4) Taxation in the country of origin
In addition, the country where the property or money is located may also require taxation of the gift. The vast majority of Latin American countries and Spain are governed in tax matters by the Double Taxation Avoidance Agreement. This means that if you have paid inheritance taxes in your country, you can ask in Spain not to pay the same tax. But we recommend to consult with a professional before starting the declarations, both in your country and in Spain.
The Latin American countries that have agreements with Spain are Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Cuba, Ecuador, El Salvador, Jamaica, Mexico, Panama, Paraguay, the Dominican Republic, Uruguay, and Venezuela.
Spain has signed this type of agreement with more than 90 countries. In addition to those already mentioned, with Europe, USA, Canada, Morocco, Algeria, China, India, Japan and more countries.
MBT Abogados offers tax advice service for donations. The consultation takes place in our office in Barcelona or by videoconference, has a duration of one hour and fees of 150 €. More information on our website: Taxes for foreigners in Spain: Complete Tax Guide 2025
There are countries, many of them in Latin America, that allow maintaining tax residency even if one lives abroad. This can generate situations of double tax residence. In these cases, the application of double taxation treaties is key, since they allow to solve conflicts and avoid paying duplicate taxes. However, it is essential to analyze each particular case.
Do I have to pay in Spain to receive a donation?
Donating goods or money to someone has tax implications, and not all donations are taxed equally. In Spain, apart from the state tax, each autonomous community has regulatory powers in the Inheritance and Gift Tax (ISD). One of the factors that most influences what you will pay is the degree of kinship between donor and donee.
Below we explain how it is organized, what types of tax advantages you can find, and practical examples of some communities.
Kinship groups and their importance
For ISD purposes, the regulations distinguish several kinship groups. These determine reductions, allowances, multiplying coefficients, etc. They are generally organized as follows:
- Group IDescendants and adopted children under 21 years of age.
- Group IIDescendants/adopted children 21 years of age or older; spouses; ascendants and adoptive parents.
- Group IIISiblings, nieces, nephews, aunts, uncles; ascendants or descendants by affinity (e.g., spouse's children).
- Group IVMore distant collaterals, cousins, persons not closely related.
The degree of kinship between donor and donee is a determining factor when calculating the Gift Tax. In general, the autonomous communities reward family closeness with important reductions and bonuses, while the more distant the relationship, the more tax will have to be paid.
In some autonomous communities there are gift tax allowances of up to 99 % for parents, children or spouses (Group I and II). This means that a donation between parents and children in Spain can be practically free from a tax point of view, provided that the legal requirements are met.
In the case of donations between siblings, aunts, uncles and nephews or second and third degree relatives (Group III), taxation is less favorable. Some communities have started to introduce partial bonuses for these cases, but in most cases the percentages are notably lower than those enjoyed by parents, children and spouses.
Finally, when the donation is made between unrelated persons, such as cousins or friends (Group IV), the taxation is usually the highest. In these cases there are usually no special reductions and the general tax rates apply, which increase progressively the higher the value of the donation.
In addition to these differences, each autonomous community establishes its own formal requirements. For example, many regions require that the donation be formalized in a public document and that the origin of the funds be justified, conditions without which the right to apply the allowances could be lost.
Practical advice
- Before accepting a donation, find out what specific regulations apply in your autonomous community.
- Consider whether it is advisable to formalize everything very well: public document, justify the origin of the money, official valuation. If you do it wrong, you can lose bonuses and generate penalties.
- If the donation is international, make sure the foreign document is valid (apostille, translation, etc.).
- Consider professional advice on structuring the gift in a way that minimizes taxes with legality (e.g., splitting gifts, staggering, etc.).
How can we help you?
In MBT Abogados, we have experience advising foreign residents in Spain in matters of donations. We accompany you in:
- Calculation of possible taxes according to your profile and applicable bonuses.
- Selection of the most beneficial regional regulations according to the connection points.
- Preparation and filing of the corresponding tax forms.
- Advice to reduce tax risks and take advantage of available legal benefits.
We are a law firm in Barcelona, specialized in services to Latin American citizens. Write us by email or Whatsapp for a free initial assessment of your case. If you want an appointment with a tax lawyer of our firm the fee for a one hour consultation is 150€.
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Frequently Asked Questions (FAQs) / Donations from abroad to Spain
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Do I have to pay taxes in Spain if I receive a donation from another country?
Yes, if you are a tax resident in Spain, you will have to pay tax on the donation in your autonomous community through the Donations Tax, even if the property or the money is abroad. -
What form should I submit for an international donation?
The form to file is Form 651. In addition, if the value of the asset received exceeds 50,000 euros and it is abroad, you must also declare the asset in Form 720. -
Does it depend on the tax of the autonomous community where I live?
Yes, the Inheritance and Gift Tax in Spain is a regional competence, so each community establishes its own reductions and allowances. In Madrid, Andalusia or the Valencian Community, for example, donations between parents and children are practically subsidized at 99 %. -
Are there differences according to the relationship with the donor?
Yes, the closer the relationship, the lower the taxes paid. Parents, children and spouses enjoy the best allowances, while donations between siblings, aunts, uncles, nephews, nieces, nephews or unrelated persons have a much higher tax burden. -
What if I have already paid taxes on the donation abroad?
In that case, you should check if there is a double taxation agreement between Spain and the country of origin to avoid paying twice for the same donation.
