Give your home to your children, leave it in your will or keep the usufruct? What works best in Catalonia

Many parents wonder whether giving their home to their children during their lifetime saves tax. In Catalonia, it is often the other way round.

Inheritance: usually the cheapest

• Children get a €100,000 allowance and tax relief of 60% down to 0% depending on the amount. Spouses get 99% relief.
• The deceased pays no capital gains tax on the home's increase in value.
• If it was the main residence, Barcelona grants 95% relief on the municipal plusvalía.

Lifetime gift: more tax, except in specific cases

• The child pays gift tax at Catalonia's reduced rates (5% up to €200,000, 7% up to €600,000, 9% above), if the gift is made by notarial deed.
• The parent pays capital gains tax on the accumulated gain, unless over 65 and giving their main residence.
• The child pays the municipal plusvalía without the inheritance relief.

Giving bare ownership and keeping the usufruct

The parent keeps living in the home and the child receives bare ownership, valued at a discount based on the usufructuary's age (a 70-year-old's usufruct is worth 19% of the home). It lowers the gift tax base, but the donor's capital gains tax remains. It needs a case-by-case calculation.

New in 2026

Since Catalan Law 11/2026, in force from 14 July 2026, a gift on death with immediate transfer is taxed as an inheritance, with its allowances. It requires careful notarial advice.

If the family is thinking of selling, we give you the home's real price so your notary or adviser can compare the options.

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Sources: Catalan Tax Agency (inheritance and gift tax, Legislative Decree 1/2024), Barcelona city council (IIVTNU), Spanish Tax Agency. General information, not a substitute for advice from a lawyer or tax adviser. Catalan Law 11/2026.