Bizkaia has ruled the following:

For gifts of assets, rights or any other legal transaction to descendants or adopted descendants which have been gifted within the previous four years to the ascendant from a different descendant or adopted descendant, the relationship between the first donor and the final recipient will be considered for tax purposes, deducting, if it is the case, any payment made for the first transaction.

The tax due will be calculated by applying the following tariffs to the taxable amount rated on the closeness of kinship. There are four groups of beneficiaries under Foral Law in Bizkaia:

1. ascendants, descendants, spouse and unmarried partner, without any consideration to age
2. siblings
3. uncles, aunts, nephews, nieces, ascendants and descendants-in-law, including stepchildren
4. cousins, in-laws (those other than ascendants and descendants) and those not related.

Group one will be taxed at a rate of 1.5%.

Groups two and three will be taxed on a progressive scale which goes from paying 526.11€ for a gift of 9,230.00€ to, for example, 77,656.23€ for a gift of 461,110.00€.

Grouo four is also taxed on a progressive scale ranging from 701.48€ tax due on a gift of 9,230.00€ to 101,205.48€ for a gift of
461,110.00€.

Reductions for gifts of an individual enterprise, a professional business or shares in a company to family members

For gifts to a spouse, unmarried registered partner, ascendants and descendants (including adopted) there is a reduction of 95% as long as the donor is 65 or more or is permanently or severely disabled on condition that:

a) At the time of the gift the donor must cease to be active in the business or enterprise and receive no more income from the same, if that is the case (this does not include merely being a director).
b) The recipient must keep possession of the gift without doing anything to substantially reduce its value for a period of 5 years.
c) If the conditions are breached the recipient must pay the tax now owed plus interest.

Reduction for gift of donor´s own home to a resident recipient

There is a reduction of 95%, with a maximum reduction of 215,000€ for gifts with full ownership of “usofructo”, “nuda propiedad”, land rights, or right of use or habitation of the house where the donor has lived with the recipient for at least 2 years continuously, immediately before the gift, the house having been the habitual residence of both parties and both are registered in the town hall as residents with “certificación de empadronamiento” and “certificación de Convivencia”.