It is increasingly common to finance the purchase of a home in Spain with money coming from abroad, especially through donations made in Belgium by family members or third parties. At first glance, the transaction may seem straightforward. The donation is made outside Spain, and the money is then used to buy the property. However, in practice, a donation in Belgium to buy a home in Spain raises tax questions that, if not properly analyzed, can result in significant costs or penalties.
The issue is usually not the property purchase itself, but how the donation is structured and documented, and which country has the authority to tax it. The combination of two different tax systems, the absence of a specific treaty on donations, and increasingly strict anti–money laundering regulations make proper planning essential. In the following article, we explain all of this from the perspective of a law firm specializing in Belgian Law, European Union Law, and International Law.
Why do these types of donations raise tax questions?
A donation made in Belgium to buy a home in Spain raises tax doubts because it does not follow a typical pattern. It is not a standard donation within a single country, but rather a transaction involving two different tax systems. As a result, many people are unsure how it should be treated for tax purposes. In international donations, the factors are usually the tax residence of the person receiving the donation and where the asset is considered to be located (movable or immovable). For this reason, a donation made in Belgium may have tax consequences in Spain or, conversely, may not be taxable in Spain at all.
Lack of a specific international treaty on donations
In addition, unlike what happens with income taxes, there is no International Tax Treaty coordinating donations between the two countries. How the donation is carried out in practice is also very important. In other words, the way the transaction is structured matters. A donation formalized before a notary in Belgium is not the same as an unregistered donation made by a direct bank transfer to a bank account in Spain. These details can completely change the tax treatment.
Stricter control of donations linked to the purchase of a home
Furthermore, donations linked to the purchase of a home are subject to stricter scrutiny, as several official parties are involved: banks, notaries, and developers. This means that certain documentation may be required, as well as proof of the origin of the funds, in line with the recent DAC Directive and Regulation (EU) 2024/886. From October 2025 will require EU financial institutions to verify that the IBAN matches the name of the beneficiary, in order to combat fraud and tax evasion.
💡 Finally, it should be borne in mind that a change in tax residence, a change in the legislation, or even the death of the donor within certain time limits can alter the tax treatment. For all these reasons, international donations require more care than domestic donations and proper planning is essential.
Does nationality determine tax liability?
Nationality does not determine tax liability in a donation made in Belgium to buy a home in Spain. For tax purposes, what matters is not the nationality of the donor or the recipient, but their tax residence and, in certain cases, the location of the asset or right being donated (real estate, the origin of the bank account, insurance policies, etc.). From a tax perspective, holding Spanish, Belgian, or any other nationality does not, by itself, mean that one must pay or is exempt from paying taxes in Spain. The tax system is based on other objective criteria, not on nationality. As a result, a foreign national resident in Spain is taxed in the same way as a Spanish national, and a Spanish national resident abroad may not be taxed in Spain. Therefore, nationality is irrelevant for gift tax purposes.
For this reason, in international donations the key question is: “Where am I tax resident at the time of the donation, and what exactly is being donated?”. One of the most important elements in a donation in Belgium to buy a home in Spain is the concept of “tax residence” of both the donor and the recipient, and how it is determined at the time the donation is made.
When is a person considered tax resident in Spain or Belgium?
A person is considered a “tax resident” in a country when that State has the right to tax their income and assets. This does not depend on nationality or on where the income is generated, but on other criteria. In general terms, the main factors used to determine tax residence in Spain or Belgium are the following:
- Physical presence. A person is considered tax resident if they spend more than 183 days during the calendar year in that territory (country).
- Center of economic interests. Even if the 183-day threshold is not met in Spain or Belgium, a person may still be considered resident if the main core of their economic activities or interests is located there.
- Family presumption. Unless proven otherwise, residence is presumed if the legally non-separated spouse and minor children habitually reside in that country.
- Registration in the population register. Being registered as a resident in a municipality is a very relevant indicator of tax residence, although it is not the only criterion and is usually assessed together with others.
- Professional and asset-related activity. Working in the country, having the main source of income there, or holding significant assets strengthens the condition of tax resident in that State.
Secondary criteria for determining tax residence
In international situations, a person cannot be considered tax resident in two countries at the same time. If both States treat the person as resident under their domestic rules, the tie-breaker criteria contained in double taxation treaties apply (permanent home, center of vital interests, habitual residence), which ultimately determine tax residence. In many countries, including Spain and Belgium, Double Taxation Treaties exist. These are international agreements, signed by two or more countries (bilateral or multilateral), whose purpose is to determine which country has the right to tax when more than one State may claim taxing rights. Spain and Belgium have each signed several Double Taxation Treaties currently in force. Find the double taxation agreements signed by Spain and the double taxation agreements signed by Belgium.
Tax residence of the donor and the recipient in a donation
In both Spain and Belgium, the taxation of a donation depends primarily on where the person receiving the money (the recipient) is tax resident and, secondly, on where the person making the donation (the donor) is tax resident. From the Spanish perspective, the Inheritance and Gift Tax Act (Ley del Impuesto sobre Sucesiones y Donaciones – LISD) clearly distinguishes between two situations:
- If the recipient is tax resident in Spain, the donation is taxable in Spain under unlimited tax liability (Article 6 LISD). This means that Spain may tax the donation regardless of where it was made, from which country the money was transferred, or into which account it was received. In this case, a donation made in Belgium has tax consequences in Spain.
- If the recipient is not tax resident in Spain, limited tax liability applies (Article 7 LISD). In this scenario, Spain may only levy the tax if the donation relates to assets or rights located in Spain, exercisable in Spain, or to be fulfilled in Spanish territory. For example, real estate located in Spain or funds held in a Spanish bank account.
The tax residence of the donor, in turn, is decisive in determining which rules apply in Belgium and which region has the authority to tax the donation. In Belgium, donations are not regulated at the federal level but at the regional level, and the donor’s residence determines whether the legislation of Brussels, Flanders, or Wallonia applies, as will be explained below.
How is a donation in Belgium taxed when used to buy a home in Spain?
In Belgium, the tax treatment of a donation made to finance the purchase of a home in Spain depends on the tax residence of the donor and on whether or not the donation is formalized before a notary. There is no single nationwide regime: each region (Brussels, Flanders, or Wallonia) has its own rules. Below, we explain the most common situation, namely donations made by donors resident in the Brussels-Capital Region.
Donation registered before a Belgian notary
When the donation is formalized in a notarial deed and registered, it is immediately subject to Belgian gift tax. In Brussels, the applicable rates are, as a general guideline:
- 3% when there is a direct family relationship or a partnership
- 7% when there is no family relationship between the donor and the recipient
The main advantage of this option is that, once registered and taxed, the donation is formally recorded before a Belgian notary and there is no inheritance risk in respect of that money.
Unregistered donation (by bank transfer)
Another option is to make the donation without a notarial deed, by means of a bank transfer accompanied by a private agreement between the parties. In this case, no tax is paid at the time of the donation. However, this option involves a risk: if the donor dies within a certain period, the donation is treated as part of the estate and becomes subject to inheritance tax, at much higher rates, especially where there is no family relationship.
‼️ As of 1 January 2026, the Brussels-Capital Region will extend this risk period from 3 to 5 years, significantly increasing the tax risk associated with unregistered donations.
For this reason, in donations of a significant amount and, in particular, between non-family members, it is often advisable to register the donation in Belgium and assume the corresponding tax cost, depending on the region. This decision not only has tax consequences in Belgium, but also makes it easier to justify the origin of the funds before banks, notaries, and authorities in Spain. For further information, please contact us.
Is a monetary donation received in Belgium taxable in Spain if it is used to buy a home?
The fact that the money is received in Belgium does not, by itself, determine whether taxes must be paid in Spain. For Spanish Inheritance and Gift Tax (Impuesto sobre Sucesiones y Donaciones – ISD), the decisive factor is the tax residence of the recipient (the person receiving the donation) and, if the recipient is not resident in Spain, the territorial connection of the donated asset or right, in accordance with Law 29/1987 (LISD). Below, we analyze several practical scenarios.
If the recipient is tax resident in Spain
When the recipient is tax resident in Spain, unlimited tax liability under Article 6 LISD applies. This means that Spain may tax the donation even if the money is received in Belgium, even if the donor is a foreign national, and even if the funds are initially held in a Belgian bank account.
💡 Example: You are tax resident in Spain and you receive a donation of €80,000 from a family member in Belgium into your Belgian bank account. In principle, the donation is taxable in Spain under ISD because you (the recipient) are a Spanish tax resident at the time of the donation.
If the recipient is not tax resident in Spain
If the recipient is not tax resident in Spain, limited tax liability under Article 7 LISD applies. In this case, Spain may only levy ISD if the donation relates to assets located in Spain, rights exercisable in Spain, or rights that must be fulfilled in Spain.
💡Example: If the donation consists of money credited to a Belgian bank account (the recipient’s Belgian account) and the donation is completed there, the donated asset is a bank balance located outside Spain. Therefore, in principle, Spanish ISD does not apply.
Situations in which there is a risk of taxation in Spain
Even if the recipient is not tax resident in Spain, a donation made in Belgium to buy a home in Spain may give rise to Spanish Gift Tax under limited tax liability in certain cases. This may occur, for example, if the donor transfers the money directly into a Spanish bank account (of the recipient or a third party), if the donor pays the seller, developer, or notary in Spain directly on behalf of the recipient, or if the donation relates to real estate located in Spain (creating a direct territorial connection). In such cases, the Spanish tax authorities may consider that the donated right is materialized or fulfilled in Spain, pursuant to Article 7 LISD.
Does the Spain–Belgium double taxation treaty protect donations?
The double taxation treaty between Spain and Belgium does not provide protection in relation to donations. This is one of the most common mistakes in international transactions. The Spain–Belgium double tax treaty applies only to taxes on income and on capital (such as personal income tax or corporate tax), but it does not cover Inheritance and Gift Tax (Impuesto sobre Sucesiones y Donaciones – ISD). Therefore, it neither prevents nor limits the taxation of a donation, nor does it stop Spain or Belgium from applying their domestic rules if the legal requirements are met. This means that:
- If a donation is subject to Spanish ISD (for example, because the recipient is tax resident in Spain). The treaty cannot be used to avoid that tax, even if the money comes from Belgium.
- If the donation is taxed in Belgium, the treaty does not guarantee that there will be no tax impact in Spain. The transaction must be analyzed under Spanish LISD rules (Articles 6 and 7).
What does exist, outside the scope of the treaty, are administrative cooperation mechanisms at EU level (the DAC Directive), which allow for the exchange of information between tax authorities.
‼️ Before relying on any treaty, it is essential to check whether the donation may be subject to ISD in Spain. A prior analysis helps avoid mistakes that are difficult to correct later.
Is there any mechanism to offset taxes paid abroad?
Spanish Inheritance and Gift Tax law provides for a limited foreign tax credit for international double taxation (Article 23 LISD), but this mechanism only applies when the recipient is tax resident in Spain. This means that if you are tax resident in Spain and you pay tax on the donation in Belgium, it may be possible to assess whether you are entitled to a deduction in Spain, subject to certain limits and conditions. If you are not tax resident in Spain, this mechanism does not apply, and planning a donation made in Belgium to buy a home in Spain must focus on other variables.
Does the autonomous community or foral territory where the property is affect taxation and donation?
When a donation is made in Belgium to buy a home in Spain, not everything is governed by the same rules. The location of the property—the autonomous community or whether it is in a foral territory—can lead to significant differences in taxes and procedures. Purchase taxes (Property Transfer Tax or Stamp Duty or Documented Legal Acts, and VAT in the case of new-build properties) and, if the donation is taxable in Spain, Inheritance and Gift Tax, are not applied uniformly across the country.
Each territory has its own tax rates, allowances, and deadlines. In the foral territories (the Basque Country: Bizkaia, Gipuzkoa, and Álava; and Navarre), the situation is even more specific, as both the legislation and tax administration depend on the corresponding Foral Tax Authority. In these cases, it is essential to determine which authority has jurisdiction, as the rules of the common tax regime do not automatically apply.
There are also differences across the rest of Spain. For example, Catalonia often applies higher Property Transfer Tax rates and, for second-hand properties, may use progressive tax brackets. Aragon, Madrid, Andalusia, the Valencian Community, Galicia, the Balearic Islands, the Canary Islands, and other regions each have their own rates and, in some cases, allowances or reductions that can significantly change the final cost. For this reason, although the analysis of an international donation starts with tax residence and how the donation is structured, the practical outcome—how much is paid, to which tax authority, and with what documentation—always depends on the specific autonomous community or foral territory where the property is located.
If you would like to know how this affects your specific case, please contact us for a personalized analysis, taking into account the autonomous community or foral territory where the property is located.
KYC, banks, and European regulations in donations and property purchases
When a monetary donation made in Belgium is used to buy a home in Spain, the transaction falls under anti–money laundering (AML/KYC) controls. These are obligations imposed by both Spanish and European regulations.
In Spain, Law 10/2010 on the prevention of money laundering and terrorist financing requires banks, notaries, property developers, and other obliged entities to identify their clients and verify the origin of the funds. At EU level, these obligations are reinforced by Regulation (EU) 2023/1113, which requires all fund transfers to include complete information about both the payer and the beneficiary, ensuring full traceability of money within the European Union.
In practice, this means that institutions usually request documentation that typically includes the donation agreement or notarial deed, bank statements evidencing the donation, and proof of the origin of the funds (savings, sale of property, investments, etc.), as well as possible documentation explaining the relationship between the donor and the recipient (whether or not there is a family link). The documentation provided to the bank, notary, or developer is not automatically forwarded to the Spanish Tax Agency. However, in the event of a tax audit, an investigation by SEPBLAC, or the activation of an administrative cooperation mechanism between Spain and Belgium (DAC Directive), this documentation and information may be lawfully accessed.
‼️ For this reason, in international donations, early planning is essential. Proper preparation makes the donation process smoother, clarifies all the steps involved, helps avoid mistakes, and reduces the risk of tax-related issues.
Real-life cases of donations in Belgium to buy a home in Spain
Donation in Belgium and purchase of a second-hand property in Madrid
This is the case of a person who is tax resident in Belgium and receives a donation from a family member, also tax resident in Belgium, in order to buy a second-hand apartment in Madrid. The recommended approach is to formalize and document the donation in Belgium (either registered before a notary or not) and to keep evidence of the origin of the funds (bank statements, private agreement, deed of donation, etc.). As regards taxes in Spain, two separate issues must be considered:
- Purchase of the property. As this is a second-hand home in Madrid, Property Transfer Tax (ITP) applies. The general rate in Madrid is 6%. For example, for a purchase price of €350,000, the tax would amount to €21,000.
- Donation of the money (Gift Tax). It must be analyzed on a case-by-case basis whether the donation made in Belgium for the purchase of the property could be considered taxable in Spain.
Donation from Belgium and purchase of a new-build property in Barcelona
In this scenario, the donor is tax resident in Belgium and the recipient is tax resident in Spain, specifically in Barcelona (Catalonia), where regional tax rules apply. The donor makes a monetary donation from Belgium so that the recipient can buy a new-build property in Barcelona for a price of €800,000. Since the recipient is tax resident in Spain, the donation is taxable in Spain under Inheritance and Gift Tax (ISD), pursuant to unlimited tax liability, regardless of the fact that the money comes from Belgium. As for the property purchase, since this is a first transfer (new-build property), Property Transfer Tax does not apply. Instead, VAT is payable, at the general rate of 10% for new housing, as well as Stamp Duty (AJD) in Catalonia, whose general rate is approximately 1.5%. Indicative example:
- VAT: 800.000 EUR × 10% = 80.000 EUR
- AJD: 800.000 EUR × 1.5% = 12.000 EUR
When the recipient is tax resident in Spain, the donation has tax consequences under Spanish ISD, and the purchase of a new-build property in Catalonia is also affected. In addition, because the donation is taxable in Spain and the recipient is tax resident in Catalonia, the specific Catalan regional rules on donations must be analyzed.
Purchase of a new-build property in Andalusia and tax advantages for family donations
In this case, a Belgian donor makes a monetary donation to a recipient who is tax resident in Spain, for the purchase of a new-build property in Andalusia for a price of 300.000 EUR. When buying a new-build property, Property Transfer Tax does not apply. Instead, the transaction is subject to VAT (generally 10% for housing) and Stamp Duty (AJD), at the applicable regional rate. In Andalusia, the general AJD rate is 1.2%.
If the property were second-hand, the applicable tax would be different. In addition, Andalusia applies a 99% tax relief on Inheritance and Gift Tax when the donation is made between close family members (Groups I and II, such as parents, children, or spouses). In summary, in Andalusia, if the donation is made within the family, the ISD burden is almost zero, which makes proper planning essential.
Foral regime of the Basque Country
In the Basque Country, the specific foral tax regime applies, which means that the rules of the common Spanish tax system do not apply automatically. Moreover, the outcome depends on the specific historical territory, so Bizkaia, Gipuzkoa, and Álava may apply different rules. It is essential to determine which tax authority has jurisdiction and which specific foral legislation applies.
For example, in the purchase of a second-hand property in Bilbao (Bizkaia) for €450,000, the main purchase tax is Property Transfer Tax (ITP), managed by the Provincial Council of Bizkaia. Indicatively, rates of 7%, 4%, or even 2.5% may apply in Bizkaia, depending on the type of property and whether certain requirements are met, for example if it is intended to be the buyer’s main residence. In practice, each territory has its own nuances, and it is always necessary to verify the competent authority and the applicable rules. Especially in matters where taxing powers lie with an autonomous community or a foral territory.
Common mistakes that increase the risk in international donations
In international donations intended to finance the purchase of a home in Spain, many problems arise due to a lack of planning, failure to seek legal advice, or the way in which the transaction is carried out. Based on our experience, the following are some of the most common mistakes:
- Not analyzing the “actual” tax residence of the donor or the recipient. Living in Belgium or spending time outside Spain does not necessarily mean that a person is not tax resident in Spain. This can lead to unexpected tax reassessments.
- Failing to formalize a donation agreement or notarial deed. The movement of money alone does not prove the legal basis or the nature of the transaction.
- Not anticipating inheritance tax implications in Belgium. When the donation is not registered, if the donor dies within certain time limits, the tax cost can be much higher than initially expected.
- Using ambiguous descriptions in the bank transfer (“help,” “contribution,” “loan”). It does not properly reflect a donation and create inconsistencies when dealing with banks, tax authorities, and other institutions.
- Splitting the donation into several payments without supporting documentation. It may lead authorities to treat them as separate donations or as income with no clear legal cause.
- Failing to coordinate the timing of the donation with the signing of the deposit agreement or the property purchase deed. It may result in unexpected requests, delays, or even the inability to complete the donation in time.
- Not translating or legalizing documentation when required. In many cases, sworn translations and, in some instances, an apostille are required, especially for notaries or banks.
- Ignoring the autonomous community or foral territory where the property is located, assuming tax rates or allowances that do not apply in that specific territory.
‼️ Avoiding these mistakes from the outset makes a significant difference. A prior review is usually far simpler—and far less costly—than having to correct the transaction after the fact.
Are you considering making an international donation? Protect third parties as well
In donations used to purchase a home, the difference between a smooth transaction and one full of problems usually lies in proper advance planning. When a donation is correctly structured and documented from the outset, bank blocks, delays at signing, and tax risks can be avoided. Moreover, good planning protects all parties involved: the recipient, the donor, and all third parties taking part in the purchase.
Before transferring the money or signing a deposit agreement, review your specific situation on a personalized basis.
Contact us for an individual analysis by our team specializing in international donations at info@arthurmarin.com or by phone at +32 465 345 345.
Ensure your purchase with a well-structured donation and no unexpected issues.
Frequently Asked Questions (FAQ) about donations in Belgium
Do I have to pay tax in Spain if I receive the donation in Belgium?
Yes, there may be an obligation to pay tax in Spain, but this depends on the tax residence of the recipient and on the location of the donated asset, in accordance with Articles 6 and 7 of the Spanish Inheritance and Gift Tax Act (LISD).
What changes in Brussels from 1 January 2026 regarding unregistered donations?
From 1 January 2026, unregistered donations in Brussels are no longer fiscally safe. If the donor dies within the legal period, the donation may be treated as part of the estate and taxed as an inheritance. In addition, the evidentiary risk increases when dealing with banks and foreign tax authorities.
How much does it cost to register a donation in Brussels if we are not family members?
In Brussels, a registered donation between non-family members is generally taxed at an approximate rate of 7%. However, the exact rate depends on the amount and the legislation in force at the time.
Can the Spanish Tax Agency question the transaction if the money reaches Spain?
Yes. The Spanish Tax Agency (AEAT) may verify the origin of the funds, the taxation under gift tax, and the consistency of the transaction. If there is no supporting documentation or the donation is not properly evidenced, the authorities may reassess the tax, impose penalties, or reclassify the transaction.
What happens if the donor dies after making an unregistered donation in Belgium?
If the donation was not registered and the donor dies within the legal period, there is a risk that the donation will be deemed part of the inheritance, with tax consequences and potential conflicts among heirs. This risk is particularly relevant in international donations.
Is there any treaty to avoid gift tax between Belgium and Spain?
No. Spain does not have a treaty to avoid double taxation in relation to donations. Inheritance and Gift Tax is governed by domestic law. Tax treaties usually cover income tax or corporate tax, not ISD.
Is it advisable to make the donation before signing the deposit agreement (arras)?
Yes. In most cases, it is advisable to formalize and document the donation before signing the deposit agreement, so that the origin of the funds is clear. This reduces risks and avoids justification issues.
Which professional should coordinate the process in Belgium and Spain?
Ideally, there should be coordination between a tax lawyer with knowledge of both the Spanish and Belgian jurisdictions. Also experience in international donations, together with the notary. This helps avoid inconsistencies between the two legal systems.
Is it better to document it as a donation or as a private loan to avoid problems with the bank or the tax authorities?
Simulating a loan when it is actually a donation is not legal and may have consequences. Banks and tax authorities often detect inconsistencies, such as the absence of repayments or interest.
What happens if the donation is made in several payments? Does this change anything for tax or KYC purposes?
From a tax perspective, each payment may be treated as a separate donation if they are not linked in a single document. It is advisable to have one single agreement covering all payments and clearly identifying them as part of the same donation.
Can a bank in Spain request documentation from the donor (identity, activity, origin of funds)?
Yes. Spanish banks may require identification and proof of the origin of the donor’s funds, even if the money is already in the account. This is an obligation arising from anti–money laundering (AML/KYC) regulations.
What happens if the donor transfers the money directly into Spain? What risks does this create?
This may lead to account blocks, doubts about ownership of the funds, and justification problems. The correct approach is for the money to pass through the recipient’s account, with the donation properly documented beforehand. Correcting this afterwards can be complex.
Are there “sensitive” amounts that increase the likelihood of account blocks or KYC requests?
Yes. Large amounts, repeated transfers, or unusual patterns increase scrutiny. In practice, transactions above €30,000–€50,000 often trigger more thorough reviews, especially in international contexts.
Do I need a sworn translation or an apostille for Belgian documentation?
Often, yes. Banks and notaries in Spain usually require sworn translations into Spanish. In some cases, a Hague Apostille, especially for donation agreements or official certificates issued in Belgium.
What reference should I include in the bank transfer (and what should I avoid)?
It should be clear and consistent, for example: “Donation in Belgium to buy a home in Spain.” It is advisable to avoid ambiguous terms such as “help,” “loan,” or “savings,” as these may create tax or banking inconsistencies.
If I later become tax resident in Spain, can this change anything?
The donation is assessed based on your tax residence at the time it was received. However, once you become resident, future reporting obligations may arise if the tax authorities review the origin of your assets. Having the transaction properly documented from the outset is therefore important.
