Gift Tax In Spain When Both Donor And Donee Are Non-Residents

What happens when neither the donor nor the recipient is resident in Spain—but the gifted asset is located there? In this episode, we explain when Spanish Gift and Inheritance Tax (ISD) applies and who must comply.

🔎 What You’ll Learn in This Episode:

1️⃣ When Spanish ISD Applies

Even where both parties are non-residents, Spanish ISD applies if the gifted asset or right is located in Spain.

This follows directly from Article 3 of Ley 29/1987.

➡️ Asset location—not residency—drives Spain’s taxing right in this scenario.

2️⃣ Who Is the Taxpayer

When Spanish ISD applies in these cases:

• The non-resident recipient (donee) is the taxpayer

• The donor is not taxed by Spain

3️⃣ Filing and Payment Obligations

The non-resident recipient must:

• File Modelo 651

• Pay any Spanish gift tax due

in accordance with the procedural rules administered by the Agencia Tributaria.

4️⃣ Practical Takeaway

For gifts where both donor and donee are non-residents:

• Spanish-situs assets → ISD applies

• Recipient files and pays (Modelo 651)

• Donor has no Spanish gift tax liability

Understanding this rule helps avoid missed filings and clarifies responsibility in cross-border gifts involving Spain.