Gift tax in Andalusia: how it is taxed and how to settle it
If your parents are going to give you money or a home, or you are the one giving to a child, there is a tax paid by the person who receives, a two-month deadline and a new requirement from 2026 that decides whether the 99 % relief is kept. We explain the rules in force and, if you wish, we file Form 651 (modelo 651) for you.
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Gift tax in Andalusia in 2026: who pays and what has changed
Gift tax is the lifetime (inter vivos) branch of inheritance and gift tax (Impuesto sobre Sucesiones y Donaciones, ISD); the other branch, on death (mortis causa), is the one heirs pay. It is paid by the donee, that is, the person who benefits from the gift. Unlike an heir, they do not wait for a death: the gift contract is signed during life. The donor settles nothing under this tax. The starting point is Law 29/1987, developed by its Regulations (Royal Decree 1629/1991), and in the Autonomous Community of Andalusia it is applied together with the benefits of Law 5/2021 on transferred taxes. A case often confused: the life insurance paid to a beneficiary when the insured person dies is not a gift, it is taxed as an inheritance.
Gifts of money, a home, a commercial premises, shares or any other asset are taxed. So is a gift of a car or an investment. The family relationship decides the treatment: children and other descendants, spouse, parents and grandparents (Groups I and II) have a very favourable regime. More distant relatives, such as brothers, sisters, uncles, aunts, nephews and nieces, do not.
What has changed: Law 8/2025 of 22 December amended article 40 of Law 5/2021 with effect from 1 January 2026. The 99 % relief is still there, but the formal requirements are different:
- A public deed is only compulsory when the gift exceeds €5,000.
- Gifts and other transfers without consideration made by the same donor to the same donee in the previous three years are added together.
- For gifts of money paid in instalments, all the payments must be recorded in a single deed.
Until 2025 the relief required a public document in every case. A small gift can now go without a deed, but a medium or large one without a deed loses the relief.
99 %
Relief on the tax due on gifts from parents to children (Groups I and II)
99 % relief on gifts from parents to children: requirements
The relief is applied to the tax due. It covers Groups I and II and those the law treats as equivalent: registered partners and permanent foster care. The starting condition is easy to meet. What goes wrong in practice is the form.
The relief only covers what you declare on your own initiative. If Hacienda sends you a request before you file, the assets included in that request no longer qualify.
With money, the procedure has three requirements when the gift is over €5,000:
- The public deed before a notary is signed within one month at most of the money being handed over.
- The deed itself states where the money comes from, and that origin must be provable.
- If the money is handed over in several payments, a single deed records all of them, and the first payment coincides with the signing or takes place in the previous month.
With a home or a commercial premises, the gift is always made before a notary so that it can be registered, so the form is rarely the problem. What does need care is what is recorded in the deed, because the tax benefit being kept if Hacienda reviews it depends on that wording. This advice before signing is the part of the work that avoids the most problems later.
An example with the Andalusian scale. A 45-year-old son receives €200,000 from his mother. The gift has no family relationship reduction and the tax is €31,620. With a deed and the origin of the funds proved, the 99 % relief leaves a tax of €316.20. If the money is handed over without a deed, the tax due is the full €31,620.
Gift of money from parents to children to buy a home in Andalusia
Here Andalusian law adds a reduction of its own, on top of the relief. It is the one that matters most to families helping with the deposit for a house. It reduces the taxable base by 99 %, up to a base of €150,000 (€250,000 if the child has a disability), provided all of the following are met:
- The child is under 35, or has a disability, or is a victim of domestic violence or terrorism.
- Their existing wealth (what they already have before the gift) falls in the first band of the scale in article 22 of Law 29/1987.
- All the money given goes towards buying their main home, located in Andalusia.
- They buy within the filing period for the tax and provide the sale deed, which must record the gift and its use towards the price.
- They keep the main home for three years.
If the child is 35 or over, their existing wealth exceeds the first band or the house is in another region, this reduction does not apply. The general 99 % relief is still there. If they later sell within three years, they will lose the reduction and have to regularise their position.
Buying with gifted money also has its own tax, the one on the purchase. For that, see property transfer tax in Andalusia.
Gift of a home to a child: reduction, relief and how much you pay
When what is given is the house, article 33 of Law 5/2021 applies a 99 % reduction to the taxable base, with the same cap of €150,000 and the same conditions on age or disability and existing wealth. Three more things are also required:
- The child must receive full ownership, not only bare ownership.
- They must use the property as their main home and keep it for three years.
- The gift deed must record that use and the commitment to keep it.
An example of taxation with a home valued at €300,000:
- A 30-year-old child who meets the requirements. The reduction leaves a base of €151,500, the tax is €21,920 and the 99 % relief brings it down to €219.20.
- A 45-year-old child. There is no reduction. The tax is €53,620 and, with the relief, it comes to €536.20.
These are estimates using the Cadastre reference value (valor de referencia) as the value of the house. They change if the home is given among several children or with a usufruct.
Giving with a usufruct, between grandparents and grandchildren, or to a brother or sister
Some gifts do not follow the pattern of parent to child with full ownership.
If, instead of giving during your life, you want to leave your assets as an inheritance, we explain the differences in our guide to inheritance tax in Andalusia.
Gift with a reserved usufruct
The parent gives the bare ownership and keeps the use of the house. Tax is paid on the bare ownership, which has a lower net value than full ownership. When the usufructuary dies, the child consolidates full ownership and files the tax again, within six months of the death.
From grandparents to grandchildren
Grandchildren are in Group II. They receive the same treatment as a child over 21, both for the relief and for the reductions on buying a home, as long as their conditions are met.
To brothers, sisters, nephews, nieces or friends
Brothers, sisters, nephews and nieces are in Group III, with a coefficient of 1.5 and no relief. Everyone else is in Group IV, with a coefficient of 1.9.
Business or company
If what is given is a business or shareholdings, there are specific reductions with different requirements, which we study separately. The gift is costly in tax terms. If this is your case, look at what suits you before acting.
Form 651: deadline and where to file
If the gift is made before a notary, the deed marks the start of the deadline and Form 651 is filed with the Andalusian Tax Agency, not with the national Spanish Tax Agency.
The gift is settled with Form 651, filed by the donee. The deadline is two months from the day after the date of the gift, that is, from the signing of the deed. For a gift without a deed, from the handover.
An example: if the deed is signed on 10 April, the deadline ends on 10 June; if it is signed on 3 October, on 3 December. And a detail that is often forgotten: this deadline cannot be extended. After the two months you can still file on your own, but with surcharges for filing late.
Which region collects the tax depends on the asset, under Law 22/2009 on regional financing:
- Property. The region where the property is located collects, wherever the two parties live. A father from Madrid who gives his daughter a home in Estepona settles under Andalusian rules.
- Money and other assets. The region where the donee lives on the date of the gift collects. If the child lives in Seville and the father in Valencia, Andalusia applies.
If the donor or the donee lives outside Spain, we analyse it before filing, because the rules change.
Municipal capital gains tax on the gift of a property
When land or a home is given, the municipal tax on the increase in value of urban land (plusvalía municipal) must also be filed. In gifts it is paid by the person who receives the property, not the donor.
It is declared to the town council where the property is located within thirty working days of the gift. The law allows town councils to give a relief of up to 95 % on the plusvalía, but only for transfers on death. For a gift made during life, that relief does not exist. These tax rules lead many families to ask whether inheriting would work out better, and the answer is different in each case.
If the land has not risen in value since the donor acquired it, there is no increase and nothing is paid.
The donor's income tax: the capital gain when giving
Someone who gives away a property may have to declare it in their tax return. The gift is treated as a transfer: if the value of the house for gift tax purposes is higher than its acquisition value, a capital gain arises that is taxed in personal income tax (IRPF), even though nothing was received.
- Losses on a gift cannot be offset against other gains.
- If the donor is over 65 and gives their main home, the gain is exempt.
- If they only give money, there is no capital gain.
- The person who receives does not pay income tax on what they receive: they already pay gift tax. But they take on the value at which it was taxed as their acquisition value, and that figure matters the day they sell.
That is why who gives, how much and when should be looked at as a whole, before going to the notary. And the content of the deed, from which everything is settled, should be reviewed before signing. For a first figure, use the gift tax calculator for Andalusia.
We settle Form 651 for you, online
Our gift tax planning service includes deciding the best option for each family: what to give, when and how, to reduce the tax burden and have the saving documented. We approach each case differently from the usual: before signing anything, we explain the advantages and risks of each step.
We are registered social collaborators (colaboradores sociales) of the Junta de Andalucía. We prepare and file Form 651 on your behalf and give you the receipt. We make sure the way the gift is made does not put the relief at risk.
To understand how we handle procedures with the Junta, see how we settle Forms 600, 650 and 651 across Andalusia.
01
Reviewing the case
Who gives, who receives, what is given, where the asset is and which requirements apply.
02
Before the notary
We tell you what must be recorded in the deed and coordinate with the notary: origin of the funds, use of the home, payments in instalments.
03
Calculation and filing
We apply the reductions and relief, prepare Form 651 and file it online within the deadline.
04
Plusvalía and income tax
We tell you what must be declared at the town council and what the donor should take into account in their income tax.
Also online
If you or your family live outside La Línea, outside Andalusia or outside Spain, you do not need to come in. We hold a video call, you send us the documents by WhatsApp, sign with a digital signature and we file everything online. Office in La Línea de la Concepción; online or in person.
Documents needed to settle a gift
Gather this information and send it by WhatsApp or email:
- ID of the donor and the donee, and the family relationship between them.
- Gift deed, or the private document if there is no deed.
- Proof of the handover of the money and of where the funds come from.
- For a property: acquisition deed, land registry extract (nota simple), cadastral reference and the property tax receipt (IBI).
- Sale deed for the home if the money given is used to buy it.
- If there were earlier gifts from the same donor in the last three years, tell us about them.
- Debts or charges on the property given (mortgage, attachment), because they change the net value.
- Details of the donee’s existing wealth when the reduction for a home is requested.
Mistakes that make you lose the relief
Handing over the money first and signing the deed months later, when it no longer counts as a simultaneous handover. For amounts over €5,000, the notary has one month from the handover.
Splitting a large gift into small transfers to stay under the threshold. Those from the same donor to the same donee over three years are added together.
Buying the house after the tax deadline has passed. For the home reduction, the sale deed has to fall within those two months.
Selling the home within three years where a reduction applied. The reduction is repaid with interest.
Waiting for Hacienda to write. If the request arrives before you file, the relief is lost on those assets.
Frequently asked questions about gift tax in Andalusia
Your situation is not listed here? Tell us on WhatsApp who is giving, who is receiving and what is being given, and we will reply.
How much gift tax do you pay in Andalusia?
It depends on the value and the family relationship. Between parents and children, the gross tax comes from a scale of 7 % to 26 %, but the 99 % relief reduces it almost entirely if the formal requirements are met. Without them, the full tax is paid.
How much of a gift is exempt from tax?
No amount is exempt by itself. The €5,000 threshold is not an exemption: it decides when a deed must be signed to keep the relief. The tax is filed even when the amount due is low.
Who pays gift tax, the donor or the donee?
The donee. The donor only has to deal with their income tax (IRPF) if they give a property.
Can you give money to a child without paying tax in Andalusia?
You can pay a minimal tax. With a gift of more than €5,000, a deed signed in the first month and the origin of the money proved, the relief leaves a result of around 1 % of the tax. If the child is under 35 and buys their main home in Andalusia, the 99 % reduction is added.
What is the deadline for filing Form 651?
Two months from the day after the gift, with no extension. If the usufruct from an earlier gift ends on the death of the usufructuary, it is six months.
Do I have to sign a deed if my parents give me money?
If the amount, added to what was received from the same donor in the last three years, exceeds €5,000, yes: it is the condition for keeping the relief. Below that figure it is not compulsory, but the tax is still filed.
Is it better to give during life or leave the home as an inheritance?
There is no single answer. In an inheritance, the town council can give a relief on the plusvalía; in a gift, it cannot. In a gift, the donor may also pay income tax on the gain on the property. We study it with your details before you sign. For the inheritance procedure, see our inheritance lawyers in La Línea.
Do you only handle paperwork?
No. We are tax advisers and lawyers. We file Form 651 and advise on the tax side of the gift, but we do not do monthly bookkeeping or payroll.
Tell us about your gift and we settle it
Tell us who is giving, who is receiving, what is given and on what date. We will tell you which documents are needed and what must be recorded in the deed.
Office in La Línea de la Concepción. We see you online or in person.
C/ Cervantes 2, entreplanta, despacho 4 · 11300 La Línea de la Concepción
WhatsApp 652 948 572 · 956 174 981 · pablo@asesoriaserra.es