Donating a flat is an increasingly valued option among those owners who want to give a home to their children. Despite the fact that inheritance usually brings with it better fiscal conditions regarding the donation, the positive forecasts in the price of housing in Barcelona , make many families plan the possibility of giving up their home while still alive so that their children can take out of her higher profitability.
If in a previous article we talked about the taxes that must be paid when inheriting an apartment in Barcelona , this time we will focus on the taxes associated with donations.
How much does it cost to donate an apartment in Barcelona?
There are three taxes involved in the donation of an apartment in Barcelona. Let's see each of them:
Inheritance and Donations Tax of Catalonia
The Donations and Inheritance Tax must be paid by the donee , that is, by the beneficiary of the inheritance. In addition, this tax must be paid within a maximum period of 30 days after the transfer of the home. Otherwise, there will be the risk of receiving certain penalties, surcharges and late payment interest.
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Before making a donation, it is convenient to know the regulations so that the recipient of the donation does not have to assume certain unexpected charges. It must be taken into account that there are certain discounts on the general rate that can be applied to certain population groups depending on: the relationship, type and value of the inherited home, etc.
The reductions on the most common donations in Catalonia are related to the donation of a habitual residence to direct descendants or money destined to the purchase of a habitual residence. In these cases, the reduction can reach up to 95% of the value of the home with a maximum reduction of 60,000 euros, which can be extended to 120,000 euros for beneficiaries with a degree of disability greater than 65%.
Municipal capital gain in Barcelona
The Municipal Capital Gain is a tribute that must be paid every time a property changes ownership, therefore, donations will not be exempt from this tax either. In this case, it will be the donor who has to render accounts with the corresponding city council for the payment of the Municipal Capital Gain.
In July 2018, the Supreme Court ruled that homes that are transferred for a value lower than the value paid by their owners when acquiring it, that is, handicaps, will be exempt from paying this tax as long as the taxpayer can demonstrate that you have not experienced any benefit of any value.
If the donated apartment that you are going to receive is not exempt from this tax and you want to know what you will have to pay for Municipal Capital Gains, you can download our Municipal Capital Gains calculator in Barcelona .
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Personal income tax
If there has been a capital gain , the donor will be in charge of taxing the transfer in his income statement for the following year.
It must be clarified that, if the donation is exclusively of money, the donor will not have to declare this transmission in personal income tax, since there has not been any variation in equity.
In the case of the donation of flats, to know if a capital gain has been experienced, it will be necessary to check if the value of the transfer is higher than the acquisition value of the property. When the transferor is over 65 years old and what he donates is his habitual residence, he should not be taxed for income in income tax.
* Home donations in Barcelona are complicated procedures that require professional advice so as not to end up assuming unforeseen expenses. Before donating or receiving a donated apartment, study your possibilities well and calculate the final amount that each of the participants in the operation will have to pay.
Resources:
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