Donation Tax Andalusia

up to 99% off.

Giving money or property to a family member in Andalusia? Since 2022, direct relatives benefit from a 99% exemption on donation tax — but the deed must be signed correctly and the tax filed within a strict 30-day deadline. We handle the entire process in English.

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See the 99% exemption
Professional Service

Tax Advisory & Filing

Starting from 200€ + IVA
  • Comprehensive case review
  • Regional exemption application
  • Official Modelo filing
  • Direct English communication
  • Strict deadline management
Get a Fixed Quote Final fee depends on case complexity and assets involved.
Key Figures

Donation tax in Andalusia — what matters

99%
months

Exemption for direct relatives in Andalusia — parents, children, grandchildren, spouse

30

Working days to file Modelo 651 after the notarial deed is signed — no exceptions

2022

Year Andalusia introduced the 99% donation tax exemption — one of the most generous in Spain

0%

Effective tax rate for most direct-family donations in Andalusia when correctly structured

The 99% Exemptions

The 99% donation tax exemption — explained

Since November 2022, Andalusia applies a 99% reduction (bonificación) to donation tax for direct family members. This makes lifetime wealth transfers between parents and children — whether cash or property — almost entirely tax-free. But it does not apply automatically.

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Cash donations between direct relatives

Parents giving money to children, grandparents to grandchildren. The 99% exemption applies regardless of the amount. The funds must be traceable — bank transfer is required, not cash in hand.

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Property donations in Andalusia

Transferring a Spanish property to a family member during your lifetime is treated as a donation. The 99% exemption applies — but the deed must be signed before a Spanish notary and the Modelo 651 filed within 30 working days.

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Who qualifies as a direct relative

The exemption covers: spouse or registered partner, children (biological, adopted), grandchildren, and parents. Siblings, uncles, cousins and non-relatives are subject to standard rates which can be significant.

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Non-residents can also benefit

Following EU Court rulings, non-resident donors and recipients can access the same Andalusia regional exemptions as residents — provided the assets being donated are located in Andalusia. This is not automatic and must be correctly claimed.

⚠️ The 30-day deadline is absolute

Modelo 651 must be filed within 30 working days of the notarial deed signing. Late filings incur automatic surcharges of 5–20% of the tax due, plus interest. Without a filed Modelo 651, the Land Registry cannot update ownership if a property was donated.

Donation tax enquiry

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Donation vs Inheritance: which is better?

In Andalusia, both are nearly tax-free for direct relatives. But there are key differences that affect when and how to transfer assets.

FactorDonation (during lifetime)Inheritance (after death)
Tax exemption in Andalusia99% for direct relatives99% for direct relatives
Filing deadline30 working days from deed signing6 months from date of death (extendable)
Notary requiredYes — public deed mandatory for property; recommended for cashYes — notarial deed of acceptance of inheritance
Capital gains tax (IRPF)Yes — donor may owe capital gains on property donatedNo — step-up in basis at death, no capital gains for deceased
Control over timingFull control — you choose whenNo control — triggered by death

⚠️ Important: donations of property trigger capital gains tax for the donor

When you donate a property, the Spanish Tax Agency treats it as if you had sold it at market value. If the property has increased in value since you bought it, you may owe IRPF on the capital gain — even though you received no money.

Step by Step

How we manage your donation tax filing

📋 Step 1

Free initial assessment

We review your situation: relationship between donor and recipient, type of asset, value, and residency status. We confirm eligibility for the 99% exemption and calculate the full tax impact.

🏛️ Step 2

Notarial deed coordination

For property donations, a public deed (escritura de donación) must be signed before a Spanish notary. For cash, we advise on documentation to ensure the transaction is properly evidenced for the AEAT.

📄 Step 3

Modelo 651 preparation

We prepare the Impuesto sobre Donaciones declaration (Modelo 651) applying all Andalusia reductions, including the 99% bonificación for direct relatives. You receive a clear breakdown before we file.

✅ Step 4

Official filing with Junta de Andalucía

We file the Modelo 651 electronically within the 30-working-day deadline. You receive the stamped filed copy, which is essential for any further legal steps or property registration.

🏠 Step 5 (Property Only)

Land Registry update

Once the tax is filed, we provide the stamped documentation needed to update the Land Registry (Registro de la Propiedad) in the recipient’s name to reflect the new ownership.

💬 Throughout

All in English

Every step explained in plain English. We liaise with the notary and the Junta de Andalucía on your behalf. You never need to navigate Spanish bureaucracy alone.

FAQ

Donation tax questions answered

Does the 99% exemption apply if the donor or recipient lives outside Spain? +
Yes — provided the assets being donated are located in Andalusia. Following EU Court rulings and subsequent Spanish law changes, non-resident donors and recipients are entitled to apply the regional rules of the autonomous community where the assets are located. This means British nationals, Germans, Scandinavians and other non-residents can access the same 99% Andalusia exemption as Spanish residents. However, this must be actively claimed in the Modelo 651 — it does not apply automatically.
Can I donate cash to my child to help them buy a property in Spain? +
Yes, and this is one of the most common situations we handle. A parent donating money to a child so they can purchase a Spanish property benefits from the 99% exemption in Andalusia. The donation must be documented — a bank transfer with a clear reference is essential, and a formal donation deed (escritura de donación) is strongly recommended. The Modelo 651 must be filed within 30 working days of the deed date. We manage the entire process.
What if I donate a property that I originally bought for €100,000 and is now worth €300,000? +
This is the key tax trap with property donations that many people miss. When you donate a property, the Spanish Tax Agency treats it as a deemed sale at market value for IRPF purposes. In this example, you would have a capital gain of €200,000 on which you would owe income tax — even though you received no money. The recipient pays (near-zero) donation tax thanks to the 99% exemption, but the donor may face a significant IRPF bill. We always calculate the full picture before you proceed. In some cases, keeping the property until death is more tax-efficient because inheritances do not trigger capital gains for the deceased.
What is the deadline for filing Modelo 651 and what happens if I miss it? +
The Modelo 651 must be filed within 30 working days of the notarial deed signing. This is a strict deadline — there is no automatic extension available. Late filings incur surcharges: 5% for filings up to 3 months late, 10% up to 6 months, 15% up to 12 months, and 20% after that, plus interest. For property donations, the Land Registry will not update ownership records until the filed Modelo 651 is presented.
Does the 99% exemption apply to donations between siblings or non-relatives? +
No. The 99% Andalusia exemption only applies to donations within the direct family line: spouse or registered partner, children, grandchildren, and parents (Groups I and II). Donations to siblings, cousins, aunts and uncles, or unrelated individuals are taxed at standard rates, which can reach 36.5% in Andalusia depending on the amount and the existing wealth of the recipient. If you are considering a donation to a non-direct relative, we assess the tax cost before you commit.
Do I need to be physically present in Spain to sign the donation deed? +
Not necessarily. If either the donor or recipient cannot travel to Spain, it is possible to grant a power of attorney (poder notarial) authorising a representative to sign on your behalf before the Spanish notary. We can coordinate this process. For cash donations where a notarial deed is not strictly required, the process can often be managed entirely remotely.

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