L’Altaveu de La2 has invited our director online, where she has been asked to explain that donations are taxed from the first euro received for free.

In Catalonia, donations made through a notarial deed between parents and children (and also grandchildren) have an acceptable tax rate: 5% (for donations up to €200,000); 7% (for donations between €200,001 and €600,000); and 9% (for donations over €600,001).

A child or grandchild, up to 36 years old, if they meet the legally established requirements, can apply a 95% tax reduction on the first €60,000 received as a donation (in cash) to purchase their primary residence or if they receive the home itself as a donation for their primary residence.

If, on the other hand, the money is to be lent rather than donated, a private loan agreement (with or without interest) must be signed and registered with the Catalan Tax Agency. The loan is tax-exempt, but if the lender passes away before repayment, the heirs will have to pay inheritance tax.

We will never stop saying it: TAX PLANNING during life and for future succession.

Grateful to the program’s team and to Danae Boronat for having us to share basic advice that affects many families.