Gift Deed Spain (Contrato de Donación)

A Gift Deed Spain (Contrato de Donación) is a legal instrument by which a person — the donor (donante) — transfers ownership of property, money, or other assets to another person — the donee (donatario) — gratuitously and irrevocably, without receiving anything in return. The Contrato de Donación in Spain is governed principally by Articles 618 through 656 of the Código Civil español, which define the donation, establish its essential elements, set out the formal requirements for its validity, and regulate the donor's rights of revocation and the donee's obligations.

Under Article 618 of the Código Civil, a donation is an act of liberality (acto de liberalidad) by which a person gratuitously disposes of a thing in favour of another who accepts it. The three essential elements of a valid donation under Spanish law are: the animus donandi (the donor's genuine intention to make a gratuitous transfer), the acceptance by the donee (aceptación del donatario), and delivery (tradición) or its legal equivalent. Article 629 of the Código Civil establishes that a donation is perfected (perfecta) only from the moment the donor knows of the donee's acceptance — prior to acceptance, the donor may revoke the offer.

Spanish law establishes strict formal requirements for donations depending on the nature of the donated property. Under Article 632 CC, donations of movable assets (bienes muebles) may be made verbally with simultaneous delivery, or in writing — in which case the donee's written acceptance is also required. Under Article 633 CC, donations of real property (bienes inmuebles) are null and void unless made by public deed (escritura pública) before a notario público, with the donee's acceptance either in the same deed or in a separate public deed communicated to the donor during their lifetime — failure to comply with this formality results in absolute nullity that cannot be cured.

The tax consequences of a donation in Spain are significant and vary by Autonomous Community. The donee pays Impuesto sobre Sucesiones y Donaciones (ISD) under Ley 29/1987, de 18 de diciembre, del Impuesto sobre Sucesiones y Donaciones, and its implementing Reglamento (Real Decreto 1629/1991). The ISD is managed by the Consejería de Hacienda of the Autonomous Community where the donee is resident (for monetary donations and movables) or where the property is located (for real property). Tax rates under the national ISD schedule run from 7.65% to 34% on the net value of the donation, but most Autonomous Communities apply substantial bonifications (bonificaciones) and reductions for donations between family members — for example, Madrid applies a 99% bonificación for donations between parents and children, while rates in other communities such as Valenciana or Andalucía have historically been less generous, though Andalucía introduced a 99% bonification from 2022.

The donor may also have IRPF implications under Ley 35/2006 — a donation of an asset that has appreciated in value triggers a deemed disposal (transmisión lucrativa) in the donor's income tax return, with a capital gain (ganancia patrimonial) calculated as the difference between the acquisition value and the market value at the time of donation, subject to IRPF at the saving tax rates (tiposdel ahorro) of 19% to 28% for 2024. Donations of real property additionally trigger Plusvalía Municipal (IIVTNU) payable by the donor under Articles 104 through 110 of Real Decreto Legislativo 2/2004, as reformed following STC 182/2021.

Donations in Spanish law may be revoked (revocadas) by the donor under three circumstances provided in Articles 644 through 656 CC: ingratitude (ingratitud) of the donee — defined as committing certain serious offences against the donor (Article 648 CC); non-fulfilment of conditions attached to the donation (Article 647 CC); and supervening birth of children (nacimiento de hijos) after the donation, under Article 644 CC. The right of revocation does not apply once the property has been transferred to a bona fide third party purchaser.

A Gift Deed Spain is needed whenever a donor wishes to transfer property or assets gratuitously to a donee during the donor's lifetime (inter vivos), as opposed to a testamentary gift (legado) that takes effect on death. Understanding when this document is required prevents invalidity and adverse tax consequences.

A Contrato de Donación is required when a parent (padre or madre) transfers a registered property — apartment, house, or parking space — to a child (hijo) as an advance of their inheritance (anticipo de herencia). In Spain, such transfers must be made by escritura pública de donación before a notario público under Article 633 CC. The Autonomous Community's ISD bonification for parent-to-child donations must be confirmed before completion — in Madrid the 99% bonificación makes this a highly efficient wealth transfer mechanism.

A Gift Deed is needed when a grandparent gifts money or securities (valores mobiliarios) to a grandchild — for example, to fund studies or a first home purchase. Monetary donations must be documented in writing and the donee must file an ISD return within 30 business days of receiving the funds, using Modelo 651 (inter vivos donations) with the Consejería de Hacienda of the Autonomous Community where the donee resides.

A Contrato de Donación is required when a business owner (empresario individual or socio) transfers shares in a sociedad limitada or sociedad anónima to a family member as part of a succession plan (plan de sucesión empresarial). Under Articles 20 and 21 of Ley 29/1987, donations of a qualifying family business may benefit from a 95% ISD reduction where the donee participates in managing the business, subject to a 10-year holding period.

A Gift Deed is needed when a benefactor donates to a non-profit organisation (entidad sin fines lucrativos) — foundation (fundación) or association (asociación) registered under Ley 49/2002 — in which case the donee organisation is exempt from ISD under Articles 3 and 14 of Ley 49/2002, and the donor may claim IRPF and IS deductions.

A Contrato de Donación is also required when assets are transferred as a donación modal (conditional gift) under Article 619 CC — where the donor imposes a burden or charge (modo) on the donee, such as caring for the donor during their lifetime (obligación de alimentos). This type of gift is distinct from a sale and has different tax treatment — the burden reduces the ISD taxable base up to the value of the property donated.

The document is needed when a married couple under a gananciales regime wishes to donate communal property (bienes gananciales) — both spouses must sign the donation deed under Article 1377 CC since disposition of community assets requires both spouses' consent.

Under the Código Civil Articles 657–1087, Spanish succession law applies the legítima system (forced heirship). The Ley del Notariado governs testamentary forms (abierto, cerrado, ológrafo). The Impuesto sobre Sucesiones y Donaciones (ISD) Ley 29/1987 taxes inheritances. Foral regions (País Vasco, Navarra, Cataluña, Aragón, Baleares, Galicia) have distinct succession rules. The Reglamento UE 650/2012 governs cross-border EU successions.

A valid Gift Deed Spain under Código Civil Articles 618 through 656 must include the following elements to be legally effective, registrable where applicable, and fiscally compliant.

Identification of Parties: Full legal name, DNI or NIE, date of birth, domicilio, and marital status (estado civil) with applicable matrimonial property regime (régimen económico matrimonial) of both the donor (donante) and the donee (donatario). Where either party is a legal entity — fundación, asociación, or sociedad — the NIF, Registro Mercantil or Registro de Fundaciones number, and name of the legal representative are required.

Description of Donated Asset: Precise identification of the donated asset. For real property (bienes inmuebles): registered description (descripción registral) from the Registro de la Propiedad including finca registral number, tomo, libro, folio, and Referencia Catastral from the Catastro Inmobiliario. For money (dinero): the amount in euros, date of transfer, and bank transfer reference. For movable assets (bienes muebles): physical description, serial numbers, or registration details where applicable.

Gratuitous Nature and Animus Donandi: An express declaration by the donor of the gratuitous and liberalités character of the transfer, confirming the animus donandi and that no consideration is received in return. Where conditions (condiciones) or charges (modos) are imposed on the donee under Article 619 CC, they must be expressly stated.

Acceptance by the Donee: The donee's express acceptance of the donation. For real property, the acceptance must appear in the same notarial deed or in a separate public deed communicated to the donor during their lifetime under Article 633 CC — absence of acceptance in the required form renders the donation null and void.

Formal Requirements: For real property, the deed must be executed before a notario público — the escritura pública de donación is the constitutive requirement of validity under Article 633 CC, not merely an evidentiary requirement. The Colegio Notarial de España oversees the notarial network. The deed is then presented to the Registro de la Propiedad for registration.

ISD Tax Obligations: Reference to the donee's obligation to file Impuesto sobre Sucesiones y Donaciones using Modelo 651 (or the equivalent Autonomous Community form) within 30 business days of the notarial deed, with the Consejería de Hacienda of the Autonomous Community where the donee resides (for movables) or where the property is located (for real property). The applicable bonificaciones and reductions for family donations in the relevant Autonomous Community should be identified.

Donor's IRPF Consequences: Acknowledgment by the donor that the donation of an appreciated asset constitutes a deemed capital gain (ganancia patrimonial) in the donor's IRPF return under Article 33 of Ley 35/2006, calculated on the difference between the acquisition value and the valor de referencia del Catastro or market value at the time of donation. The donor should seek advice from a gestor fiscal or asesor tributario before executing the deed.

Revocation Provisions: The deed should reference the donor's statutory rights of revocation under Articles 644 through 656 CC — particularly for ingratitude (Article 648 CC) and non-fulfilment of conditions (Article 647 CC) — and any express conditions attached to the donation.

Forms-legal.com provides this Gift Deed Spain template as a practical starting point. All donation transactions, particularly those involving real property or significant monetary value, require execution before a notario público and should be reviewed by a qualified abogado or asesor fiscal to optimise ISD treatment under the applicable Autonomous Community rules.

The Código Civil (Articles 618–656) governs donations in Spain. Ley 29/1987 del Impuesto sobre Sucesiones y Donaciones regulates the ISD tax. The Registro de la Propiedad provides title protection for donated real property. The Agencia Tributaria (AEAT) oversees IRPF implications for donors. The Colegio Notarial de España governs notarial formalities required for valid real property donations.

Under the Código Civil Articles 657–1087, Spanish succession law applies the legítima system (forced heirship). The Ley del Notariado governs testamentary forms (abierto, cerrado, ológrafo). The Impuesto sobre Sucesiones y Donaciones (ISD) Ley 29/1987 taxes inheritances. Foral regions (País Vasco, Navarra, Cataluña, Aragón, Baleares, Galicia) have distinct succession rules. The Reglamento UE 650/2012 governs cross-border EU successions.