Gifting your home to your children in the Valencia region

Little on Form 651, but it is not the only tax.

The credit takes 99% off the tax left after the €100,000 allowance per child. Example: a resident mother gifts her 40-year-old son a flat with a reference value of €250,000; the tax is €21,261.54 before the credit and the son pays €212.62. It requires a public deed (or formalising one within the filing period), declaring the whole home and filing Form 651 on time or, if late, before any request from the tax office. The municipal plusvalía and the parents' gain come on top.

They file Form 651 with the AEAT, not with the ATV.

A non-resident recipient is taxed on the home located in Spain and is entitled to apply the Valencian rules, with the same allowance and the same 99% credit. But they file and pay with the Spanish Tax Agency, within 30 working days of the deed, not within the one month a resident child has before the ATV.

You declare the gain at 19% with Form 210.

The gain on the home is income obtained in Spain and is taxed at 19% under IRNR, using the IRPF rules: the gift-tax value, capped at market value, minus what the home cost you. It is filed within the three months that follow the month after the deed. Your child does not withhold the 3% that applies on sales, because a gift has no price. If the child takes over an outstanding mortgage, talk to us first. And we do not treat the over-65 main-home exemption as available to non-residents.

Yes: you gift the bare ownership and keep the usufruct.

Your child declares only the bare ownership. A life usufruct is worth 89% minus the usufructuary's age, with a floor of 10% and a ceiling of 70%, although the tax rate is worked out on the full value of the home. When the usufruct ends, your child pays tax on the part not taxed at the time. The calculator assumes a gift of full ownership; with a usufruct we run the numbers separately.

It all fits in one deed; each child has their own allowance.

One deed can include both parents as donors and several children as recipients. Each child files their own Form 651 for each donor, with their own €100,000 allowance, or more if under 21, and their own municipal plusvalía; each parent declares their own gain. If both parents own the home, each gifts their half: that is two gifts, each with its own allowance. The limit adds up everything received from the same donor in the previous five years. Our price is per deed with one child included, and each additional child adds a fee.

One month with the ATV or 30 working days with the AEAT.

If the child lives in Spain, Form 651 is filed with the ATV within one month of the deed; if not, with the AEAT within 30 working days. The plusvalía is declared at the town hall within 30 working days. The parents declare their gain in that year's income tax return if they live in Spain, or with Form 210 if they do not. Filing after a request from the tax office loses the 99% credit.

Form 651 uses the reference value; the parents' gain, no more than market value.

Gift tax takes the Catastro reference value on the date of the deed, or the declared value if higher, and it can only be challenged by appealing the assessment or asking to correct the self-assessment. For the parents' gain, however, the transfer value cannot exceed market value. The calculator applies this if you give it both values.

The child who receives the home.

On transfers for no consideration the acquirer pays, within 30 working days; many town halls require a self-assessment. It is worked out by the objective method, on the cadastral value of the land, and by the actual method, on the gain on the land, and the lower one is paid. With no increase in value, nothing is due. Each town hall sets the rate, up to a maximum of 30%.

It depends mostly on the parents' capital gain.

Under the current Valencian rules, the child's tax is almost the same either way: a €100,000 allowance and a 99% credit. The difference lies with the parents: gifting means declaring the gain on the home, while on inheritance that gain is not taxed. On inheritance, the family home may also get a 95% reduction and many town halls give a plusvalía rebate. And if the donor dies within four years, the gift is added to the estate to set the tax rate. That is why we calculate both scenarios before you sign.

The purchase deed, the IBI bill and details of parents and children.

The deed by which the parents bought the home and the costs of that purchase, the latest IBI bill with the cadastral value and reference, the passports or NIEs of parents and children, each one's country of residence and, once the notary prepares it, the draft deed of gift. If a mortgage remains, the latest loan statement.