Friend of mine owns a prop in Spain & wants to give it to his daughter. No mortgage. Anyone any idea what tax would b payable in Spain? Value is about € 350k. Looks like under the threshold in Ireland but dont know about Spain.
If really want to gift to child now might be a good time as market values are so low. In absence of evidence of market value it was mentioned to me recently that Spanish Revenue would generally accept a valuation based on 3.5 times the Catastral Value but as previous poster mentioned the threshold is very low unless the property was beneficiarys main residence.
Disadvantages
If the daughter does not have a property in ireland she will not be classified as a first time buyer so will not be able to avail of the First time buyers reliefs - Stamp Duty & TRS
Parents are liable to CGT in Ireland assuming profit less CGT paid in Spain. If no mortgage they probably have the property a long time. If they don't have the property a long time they may be asked how they funded the purchase price.
The new rate for CAT is 434K. As 350K is greater than 80% of the new threshold revenue have to be advised.
Should talk to a tax advisor is both Ireland and Spain although most Irish tax advisors may should be able to advise the situation is Spain.