Gifting a Property in Spain as an American Citizen

An American who owns a property in Spain can give it, during their lifetime, to their children or to another family member. In Spain this is done by a deed of donation signed before a Spanish notary and registered at the Land Registry, and once signed it is, as a rule, final. Both sides can sign from the United States by power of attorney. We are Spanish lawyers and we cover the Spanish side; for the US tax position, please speak to your US adviser.

We are listed on the U.S. Embassy Madrid’s list of attorneys for the Valencia and Murcia region.

Free guide: Spanish Property for U.S. Citizens — buying, selling, inheriting and gifting a property in Spain.

The basicsHow a gift of property works in Spain

• The deedA gift of real estate has to be made in a public deed before a Spanish notary and accepted by the person receiving it. A private agreement between family members is not enough.
• The Land RegistryThe deed is then registered at the Land Registry. Until it is registered, the new owner is not the owner as far as third parties are concerned.
• It is finalSpanish law allows a gift to be revoked only in narrowly defined circumstances. Unlike a later inheritance, a gift is final the day it is signed.
• The NIEThe person giving and the person receiving both need a NIE. It has to be applied for in person, at a Spanish consulate in the United States or in Spain.

StructuresThe structures we normally use

• Bare ownership, keeping the useThe parents give the children the bare ownership (nuda propiedad) and keep the lifetime right to use the property or rent it out (usufructo). When the usufruct ends, the children have full ownership.
• Full ownershipThe children receive everything straight away. It suits parents who no longer use the property, but they give up the right to live there and to any rent.
• With a right of reversionThe deed can provide that the property returns to the parent if a stated event occurs, most commonly the death of the child first. It has to be included in the deed when it is signed.

Tax in SpainThe Spanish taxes involved

• Gift taxPaid in Spain by the person who receives the property, under the rules of the region where it is located. In the Valencian Community close family members can benefit from reductions, which are conditional and have to be checked at the time of the gift.
• The donor’s tax on the gainIn Spain, giving a property away is treated as a disposal for the person giving it. If it is worth more today than when it was acquired, the donor can be taxed in Spain on that increase, even though no money changes hands.
• Municipal plusvalíaThe local tax on the increase in the value of the land, charged by the town hall where the property is.

The Spanish figures depend on the region, the family relationship and the values in each case, so we put them in writing before anything is signed. The US tax position is a matter for your US adviser.

From the United StatesSigning without travelling to Spain

Apart from the NIE, the whole gift can be handled through a power of attorney, signed at the Spanish consulate that covers your state, or before a notary public where you live and then apostilled by the Secretary of State of that state. We draft the wording and send it to you in Spanish with an English version, ready to sign. The signed original has to reach us in Spain.

Frequently asked questions

Can I keep living in the property after the gift?

Yes, if you give only the bare ownership and keep the usufruct. With a gift of full ownership, you give up that right.

Can a gift be undone?

Only in narrowly defined circumstances set by Spanish law. That is why the structure has to be decided before signing.

Is a gift better than letting the children inherit later?

There is no general answer. It depends on the Spanish taxes on both routes, which we can calculate for your case, and on your US position, which your US adviser has to look at.

Do you advise on US gift or estate tax?

No. We are Spanish lawyers and we cover the Spanish side only.

How we work

From our office in Jávea and the associated office in Dénia we work across the northern Costa Blanca: Jávea, Dénia, Moraira, Teulada, Benitachell, Benissa, Calpe and Altea. See also gifting property in Spain to your children and powers of attorney from the United States.

Tomas Ballestero Lawyers has advised international clients on Spanish property for more than 30 years. We work in English, French and Spanish.

The lawyers who will handle your matter

José Manuel Tomas

Property, Inheritance and Donations · Admitted to the Valencia Bar in 1992 (no. 6407) · Alicante Bar no. 9382

José Rico

Family Law · Valencia Bar no. 12075

Mariano Ortuño

Valencia Bar no. 6041

Manuel Lopez de Andujar

Property, Inheritance and Donations · Valencia Bar no. 7773

Juan Poch

Property, Inheritance and Donations · Alicante Bar no. 3607

María Salvá

Property, Inheritance and Donations – Dénia · Alicante Bar no. 3699

Antonio Rodríguez de Sola

Property, Inheritance and Donations – Dénia · Alicante Bar no. 3374

Selling instead? See selling a property in Spain as an American citizen.

How we meetIn person in Jávea, or 100% remote

In person in JáveaMeet us at our office in the Centro Comercial Arenal, Avenida del Pla 126. Meetings in English, French or Spanish.

100% remote, from homeMost of our clients never need to travel. We work by email, phone, WhatsApp and video call, and you sign through a power of attorney. Only the NIE has to be applied for in person, in Spain or at a Spanish consulate.

How much do you charge?

Every case is different, so before any work starts we send you a written quote. You know our fee from the beginning, with no surprises at the end.

Next stepWhat happens when you contact us

1. You send your enquiryThrough the form below, by phone, WhatsApp or email. A few lines are enough.
2. A lawyer reads itNot an assistant: one of our lawyers reviews your situation and replies personally, the same day.
3. We tell you the next stepWhat needs to be checked first, and which documents would help.
4. We confirm scope and feeIn writing, before any work starts.
5. You decideNothing is commissioned until you say yes.

This page is general information about Spanish law and does not constitute legal advice. Every case is different and you should take advice on your own circumstances before acting.