The act of donating a property to a descendant, even without a direct monetary exchange, carries tax implications that must be considered. Any donation is subject to Inheritance and Gift Tax, meaning the recipient of the property will incur a cost.

Furthermore, the donor may also be affected by Personal Income Tax (IRPF) due to capital gains if the property's value has increased since its acquisition. However, the Tax Agency provides a crucial exception for individuals over 65 years old who donate their primary residence, exempting them from paying IRPF on such gains.

This exemption, outlined in article 33 of the IRPF law, applies to primary residence donations made by individuals over 65 years old or those in severe or great dependency. It is essential that the donated property is the habitual residence at the time of transfer or has been so within the two years prior. It is important to note that this tax advantage benefits only the donor, while the children receiving the property must still pay the Inheritance and Gift Tax.

In autonomous communities such as Madrid, Andalusia, Cantabria, and Canarias, this tax is almost entirely subsidized. In the Canarian Archipelago, the subsidy reaches 99.9% for direct heirs (children, parents, spouses, common-law partners) and has been extended to other family groups since late 2023.

The 2025 Income Tax campaign in Canarias introduces improvements in regional deductions, such as an increase in the deduction for rental housing to 24% (with limits of 740 or 760 euros depending on age) and an increase in income limits to access it. Deductions for certain taxpayers are also consolidated, those for investment in primary residence are maintained, and personal and family minimums are increased. Additionally, 12% can be deducted for health expenses, and a 400-euro aid is included for non-contributory pensions.