Note
Transferring property to your children in Spain
Quick answer
You can pass a home to children by gift, by will, by sale or by a gift of the bare ownership with a usufruct kept. Each route triggers different taxes, and the inheritance and gift tax is a state tax with regional reliefs. Compare the whole cost of each route with a tax adviser before the deed.
Applies toOwners of a Spanish home who want to pass it to their children, and the children themselves. It does not give regional reliefs or a recommendation.
On this page: 8 sections
§ 1Four routes
An owner who wants a child to have the home has four main routes. The first is a gift during life. The second is an inheritance by will on death. The third is a sale to the child, at a price and on terms that the tax agency may examine. The fourth is a gift of the bare ownership with the usufruct kept for life. Each triggers a different set of taxes and a different level of control. The chapter on the whole subject is inheritance and gift tax step by step.
§ 2Gift in life
A gift is taxed through the gift tax, on model 651, within thirty working days of the act. The child is taxable. The municipal tax on the rise in land value arises as well, and the child is the taxpayer. The donor may have a gain, which depends on how the property is treated. The page on gifts goes into the detail of the tax on a gift.
§ 3Inheritance
An inheritance is declared on model 650 within six months of the death. The reliefs depend on the region whose rules apply, which the form instructions tie to the deceased's habitual residence. Leaving the home by will keeps control with the owner for life and avoids a gift now, but the family pays the tax later, and the reliefs may differ from those in force today.
§ 4Sale to a child
A sale is a real transaction. The buyer child pays the transfer tax that applies to the home, the seller pays tax on any gain and the municipal tax, and the price must reflect the value. A sale at an artificially low price can be treated as a partly gifted transfer, so ask an adviser how the price will be examined.
§ 5Bare ownership and usufruct
An owner can transfer the bare ownership to a child and keep the usufruct. The owner keeps the right to live in the home for life, and the child becomes the owner of the property subject to that right. The tax agency mentions this structure in its page on the over-sixty-five exemption, which says the exemption also applies when the bare ownership is transferred and the lifetime usufruct reserved, in the case of a habitual home. When the usufruct ends, model 655 is used to declare the consolidation of ownership.
§ 6Children abroad
The tax is charged on the person who receives the assets, whether resident or not. Non-resident children are taxable on assets in Spain, and the rules on representatives apply: those outside the EU and EEA with the relevant assistance agreements must appoint a representative in Spain. Plan for the paperwork, the translations and the powers of attorney.
§ 7Questions to ask before the deed
Ask the adviser to compare the four routes for your region and your family, in writing and with the same assumptions. Ask about the donor's tax position, the municipal tax, the notary and registry costs, the effect on a mortgage if there is one, and what happens if the child dies before you or the family situation changes.
§ 8Related pages
How inheritance tax by region works explains how the regions differ, and Inheritance tax Spain non resident explains how the tax applies to non-residents.
How gift tax works explains how gifts are taxed.
FAQRelated questions
What is the cheapest way to pass a home to a child?
There is no single answer, because the cost depends on the region, the value, the relationship and the donor’s tax position. Ask an adviser to compare a gift, a will and a sale with the same assumptions before you choose.
Can I keep living in the home after giving it?
Yes, if you give the bare ownership and keep the usufruct for life. The child owns the property subject to your right to use it. The agency’s page on the over-sixty-five exemption mentions this structure, which has its own tax effects.
Do my children need to be residents?
No. Residence does not matter for the right to receive. A child living abroad who receives Spanish assets is taxable all the same, and may have to name a representative, depending on the country of residence.
Sources
- Administración.gob.es: Inheritance and gift tax: tax rules for non-residents (official source, opens in a new window), Forms, deadlines, state or regional rulesLast checked 17 October 2026
- Agencia Tributaria: Sale of the habitual home by people over 65 (official source, opens in a new window), Personal income tax exemptionLast checked 17 October 2026
- Agencia Tributaria: Modelo 650 (non-residents): instructions (official source, opens in a new window), Who files and the deadline for inheritancesLast checked 17 October 2026
Tax note. Rates depend on the region, the type of property and the buyer, and they change. Figures here are dated and sourced; examples are illustrative and show their assumptions. Confirm yours with the regional tax agency or a tax adviser.