Case Study: Why an Irish Family Donated Their Spanish Property to Their Children

Posted in: Case studies


An Irish couple in their 70s enjoying a peaceful afternoon in the garden — representing the dignity and connection your donation helps preserve

Background

In early 2025, a retired Irish couple living in Ireland but owning a holiday property in Alicante contacted our law firm. The couple, both in their seventies, owned a three-bedroom villa on the Costa Blanca, purchased in the late 1990s. Their main concern: ensuring their children would inherit the property easily and without financial or legal burdens.

After assessing their goals—minimising future inheritance tax, avoiding legal complications, and ensuring clarity in ownership—we advised them to consider donating the property to their children now.

The Legal Strategy: Donation (Donación) in the Valencia Community

Under Spanish law, property can be transferred during your lifetime through a donation. In the Valencia Community, significant tax advantages currently exist for donations between parents and children.

We informed the family of the following benefits:

Up to 100,000€ tax-free allowance per child, with a tiny percentage of gift tax above this currently.

Reduced paperwork and limited Spanish probate process when the time comes, as the property would already be in the children’s names. No probate process if an online bank account set up in the children’s names and no car.

Fixed and known costs, with no risk of future tax changes or legal uncertainty.

Immediate clarity in ownership and future responsibility for maintenance and taxes.

Execution of the Donation

With both children (in their 40s and living in Ireland and the UK) able to provide documentation and grant powers of attorney, the donation was completed within 4 weeks. Our team handled:

Tax calculations and submission

Drafting and signing the donation deed before a Spanish notary

Updating the Land Registry and Catastro

Coordination with local authorities to ensure compliance and correct payment of donation tax and municipal plusvalía.

Outcome

The parents successfully transferred the property to their children while retaining full enjoyment of the home until they decide otherwise. The children now legally own the villa, and the family has peace of mind knowing that:

There will be no probate delays or disputes

Future costs are minimised

Their legacy is protected

Summary

Now is an ideal time to donate your Spanish property in the Valencia Community—especially if you are concerned about the future and want to benefit from the current regional tax advantages.

A donation can be faster and cheaper than waiting for inheritance.

Legal support is essential to ensure a smooth and compliant process.

Thinking of donating your property in Spain to your children?

Contact Molina Solicitors for honest, experienced advice on the legal and tax implications. We handle the full process from start to finish with English speaking staff.