1. Donation of property located in Spain
When the donees (recipients) are non-resident in Spain but resident in an EU/EEA member state, they can apply the regional regulations of the Autonomous Community where the donated property is located.
Example:
A Spanish resident donates a property in Mallorca to children living in Germany. The applicable Donation Tax will follow the Balearic Islands’ regulations.
2. Donation of property located outside Spain
If the donees are residents in Spain, they may apply the regional regulations of the Autonomous Community where they reside.
Example:
A non-resident donates properties located abroad to children living in the Balearic Islands. These heirs will apply Balearic Donation Tax rules when paying the tax.
3. Donation of property in Spain made to non-residents
If the donees are non-resident in Spain but resident in an EU/EEA country, they will apply the regional rules of the Autonomous Community where the assets have been located for most of the five years prior to the donation.
Why this change matters
Before this ruling, non-residents were taxed under the state system, which was significantly higher and less beneficial than regional regimes. The reform has therefore harmonised taxation and ensured equal treatment between residents and non-residents from EU/EEA countries.
For citizens outside the EU/EEA, the state regime continues to apply, although certain bilateral agreements or legal claims may still allow for partial reliefs.
How we can help
At Frau Legal, our team of tax and inheritance lawyers specialises in international estates and cross-border taxation. Whether you are a resident or a non-resident inheriting or donating property in Spain, we ensure your case is handled with full legal security and tax efficiency.
📍 Contact our offices in Palma, Puerto Portals, Sóller or Ibiza:
fraulegal.com/contact
For related information, you can also read:
👉 A New European Regulation Modifies the Inheritance Law Affecting Foreigners in the Balearic Islands
