The short answer
If you are over 65, or in a situation of severe or great dependency, the gain on transferring your habitual residence is exempt from Spanish income tax, and that includes giving it away. In March 2026 the tax directorate confirmed that donating 50% of the home to a spouse qualifies. The exemption covers your income tax only: the recipient’s Gift Tax and the municipal plusvalía may still apply.
Why a gift can be taxed for the giver
Spanish income tax treats a donation as a transfer. If your home is worth more than you paid for it, a gift can produce a taxable gain for you as the donor, calculated with the values that result from Gift Tax rules and capped at market value. For people over 65 giving their habitual residence, that gain is exempt.
The March 2026 ruling on giving half the home
The binding consultation V0571-26, of 11 March 2026, concerned a person over 65 who intended to donate 50% of their habitual residence to their spouse. The tax directorate concluded that, if the home is the habitual residence and the donor is over 65, the income-tax exemption applies to the gain on that donation. It added that residence is a question of fact, to be proved by any valid means and assessed by the tax agency.
The ruling’s facts are a gift to a spouse. The general rule it applies is the statutory income tax exemption for people over 65 transferring their home, which is why a gift to children can also be assessed under it; how it applies to your case should be reviewed before signing.
Does your home count as your habitual residence?
- It is normally the dwelling you have lived in continuously for at least three years, with exceptions such as death, marriage, separation or a change of job.
- For this income tax exemption, you are treated as transferring your habitual residence if it is your habitual residence at the time of the gift or was until any day in the two years before.
What still applies
- The recipient’s Gift Tax. Whoever receives the home pays Gift Tax on it; in Andalucía, children and spouses apply a 99% relief subject to its conditions.
- The municipal plusvalía. It applies to transfers of urban land by any title, and in a gift the recipient is liable, within thirty working days.
- The Gift Tax return. Due within thirty working days from the day after the gift.
If you live outside Spain
Whether a donor who is not tax resident in Spain can use this exemption is not settled on this page; it needs case-specific review before any decision.
For the full picture, see our guide to donations in Spain for international families and our guide to gifting your Spanish property to your children.
Email marialuisa@costaluzlawyers.es with your age, how long you have lived in the home and who would receive it, or call our client line on +34 919 499 342.
Frequently asked questions
I am over 65. Do I pay capital gains tax if I gift my home in Spain?
The gain is exempt from your income tax if the home is your habitual residence.
Can I gift only half of my home and keep the exemption?
In binding consultation V0571-26 the tax directorate applied the income-tax exemption to a donation of 50% of the home to a spouse.
What if I moved out recently?
For this income-tax exemption the home counts if it was your habitual residence until any day in the two years before the gift.
Does my child or spouse still pay tax?
Yes. The recipient pays Gift Tax, and for urban property the municipal plusvalía.
Who decides whether the home was my habitual residence?
It is a question of fact assessed by the tax agency, proved by any valid means.
This is general information, not definitive legal advice — every case requires individual analysis.
Official sources
- Ley 35/2006, del IRPF, art. 33.4.b (BOE): https://www.boe.es/buscar/act.php?id=BOE-A-2006-20764
- Real Decreto 439/2007, Reglamento del IRPF, art. 41 bis (BOE): https://www.boe.es/buscar/act.php?id=BOE-A-2007-6820
- Dirección General de Tributos, binding consultation V0571-26: https://petete.tributos.hacienda.gob.es/consultas/?num_consulta=V0571-26
- Ley 29/1987, del Impuesto sobre Sucesiones y Donaciones (BOE): https://www.boe.es/buscar/act.php?id=BOE-A-1987-28141
- Real Decreto Legislativo 2/2004, Ley Reguladora de las Haciendas Locales (BOE): https://www.boe.es/buscar/act.php?id=BOE-A-2004-4214
This is general information, not definitive legal advice — every case requires individual analysis.
This article provides general guidance only and does not constitute legal advice. For personalised advice tailored to your specific situation, please book a consultation with our team.