{"id":12837,"date":"2020-04-16T10:06:02","date_gmt":"2020-04-16T08:06:02","guid":{"rendered":"https:\/\/icv.tunuevapagina.com\/lend-donate-money-buy-property-ibiza\/"},"modified":"2025-11-18T09:26:04","modified_gmt":"2025-11-18T08:26:04","slug":"lend-donate-money-buy-property-ibiza","status":"publish","type":"post","link":"https:\/\/www.ibizacountryvillas.com\/en\/lend-donate-money-buy-property-ibiza\/","title":{"rendered":"Lend or donate money to buy a house in Ibiza: what is better?"},"content":{"rendered":"

In tax terms, it is not the same to lend the money<\/strong> (e.g. to a son) than to make a donation<\/strong>. If you are thinking of buying a property in Ibiza<\/a>, this article will be interesting for you.<\/p>\n

From the Ibiza Country Villas<\/strong> real estate agency we advise to know the taxes and procedures of each alternative before opting for one of them.<\/p>\n

Is it better to “give the money away” or is it preferable to take out an interest-free loan? Let’s put some light on these questions.<\/p>\n

TAX ISSUES OF A MONEY DONATION<\/h3>\n

In the case of making a monetary donation to buy a house in Ibiza, it must be taken into account that the person who receives it must pay the Donations Tax.<\/p>\n

That is to say, if a father makes a donation to his son for the purchase of his home, the latter will be obliged to pay the tax.<\/p>\n

However, each Autonomous Community regulates it differently. In the Balearic Islands there are several reductions that allow for a 57% reduction in this tax.<\/p>\n

To benefit from this reduction there are some requirements. You can check them at this post from idealista<\/a>.<\/p>\n

Tax implications of a loan<\/h3>\n

The first thing that must be clear is that if you choose to take out a loan to buy a house in Ibiza, it’s imperative that you get it in written form.<\/strong>.<\/p>\n

When drawing up this contract, it is very important to specify the repayment terms and whether it is a loan with or without interest<\/strong>.<\/p>\n

This aspect is also crucial, since, if they are included, the donor must include them as a return in his income tax return.<\/p>\n

Both options (interest bearing loan or interest bearing loan) do have one thing in common: they are “taxed in the Transfer Tax (ITP)<\/strong>, although it’ s exempt. To do so, the self-assessment of the tax (form 600) must be presented where the exemption must be stated”, as explained in this other post<\/a>.<\/p>\n

So, IN IBIZA… is it better to donate or is it better to lend?<\/h3>\n

Everything will depend on the specific situation of each client, since if the requirements established in the Balearic legislation are not met, you may be more interested in taking out a loan.<\/p>\n

Our team of real estate agents are constantly training and are experts in the field of taxation, so they can help you choose the best option for you.<\/p>\n

Don’t hesitate to get in touch with us<\/a> if you have more doubts about it or if you need advice when buying a house in Ibiza as an investment.<\/p>\n

Photo by\u00a0Christian Dubovan<\/a>\u00a0on\u00a0Unsplash<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

In tax terms, it is not the same to lend the money (e.g. to a son) than to make a donation. If you are thinking of buying a property in Ibiza, this article will be interesting for…<\/p>\n","protected":false},"author":1,"featured_media":14205,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[25],"tags":[],"class_list":["post-12837","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.ibizacountryvillas.com\/en\/wp-json\/wp\/v2\/posts\/12837","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ibizacountryvillas.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ibizacountryvillas.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ibizacountryvillas.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ibizacountryvillas.com\/en\/wp-json\/wp\/v2\/comments?post=12837"}],"version-history":[{"count":0,"href":"https:\/\/www.ibizacountryvillas.com\/en\/wp-json\/wp\/v2\/posts\/12837\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.ibizacountryvillas.com\/en\/wp-json\/wp\/v2\/media\/14205"}],"wp:attachment":[{"href":"https:\/\/www.ibizacountryvillas.com\/en\/wp-json\/wp\/v2\/media?parent=12837"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ibizacountryvillas.com\/en\/wp-json\/wp\/v2\/categories?post=12837"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ibizacountryvillas.com\/en\/wp-json\/wp\/v2\/tags?post=12837"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}