The number of residential real estate transactions through donations and through inheritance has continued to grow in Spain for several years in a row.
According to the latest data from the Institute of National Statistics of Spain (INE), it is enthusiastically recorded that the number of housing sales registered in the registers reached about 53,600 units in February 2022. This is the best indicator for the last 14 years and an increase of 27% compared to the first two months of this year.
With much less enthusiasm, INE reports an increase in the number of housing transfers through donations and inheritance. According to the statistical agency, in the first two months of the year, 5,239 cases of housing donations were registered in Spain, which is 14.3% more than in the same period of 2021. At that time, 4,581 donations for real estate were recorded.
In fact, January 2022 set a record in monthly terms in the history of observations, and February of this year was the second best month in a row.
Even more cases of inheritance of housing were recorded - 31,939 transactions, although by percentage it is only 0.7% more in annual terms. Compared to January-February of last year, the number of inheritance transfers increased by 217 units in 2022. But February, in which more than 16,700 transactions were made, became the eighth best month in the history of observations.
Growth to historical records
Despite the fact that the annual growth in the volume of housing transfers through donation and inheritance is more moderate than the growth in sales, it should still be borne in mind that in 2021 both categories set historical records.
According to INE, last year the total number of donations for residential real estate in Spain exceeded 25,000, which is the highest figure in the entire history of observations. In annual terms, the growth was almost 25%, and in comparison with the lows of 2014, the indicators doubled. Then there were absolutely just over 14,300 transactions.
The leaders of growth in the country, in the number of donations for housing, were Andalusia and Madrid. The regions reached a level of almost 5,400 transactions in the first case and more than 4,000 in the second. This is 37.47% of the total number of such transactions.
The list of TOP regions:
- Valencian Community — 3,569;
- Catalonia — 2,167;
- Balearic Islands — 2,152;
- Murcia — 1,346;
- Castile and Leon — 1,249;
- Canary Islands — 1,134.
Experts explain such record figures by several factors, including COVID-2019 spectacular. The pandemic has prompted many people to plan and distribute their wealth among relatives, transferring assets during their lifetime in case of unforeseen circumstances.
Another factor was the haste of some homeowners associated with the fear of new tax changes that came into force in the country on January 1, 2022. The changes defined a new tax base and introduced fees such as Property Transfer Tax (ITP) and Inheritance and Gift Tax (ISyD).
From the first months of the action, changes to the tax system began to have a direct impact on the valuation of real estate in Spain and, as a result, the amount of tax fees that taxpayers have to pay.