Can a joint bank account help you avoid paying gift tax in Spain?

The most typical family members that give financial gifts is of course parents giving money to their adult children. This could be elderly parents helping their kids out with savings or special purchases.

One of the ways that some people choose to do to get around this open a joint bank account with one or more of your children so that you can share your money with them.

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Previously this could have been interpreted as parents sneakily trying to gift their kids money, without it being reported as a gift and paying tax on it. It could be seen as the children automatically owning 50 percent of whatever you deposited.

The Treasury has now clarified, however, that including a child as a joint owner of a bank account does not necessarily imply an automatic gift donation and there is a difference between holding a bank account and owning money.

The new resolution from the General Directorate of Taxes which came out in April 2025 is based on various Supreme Court rulings which establish that the fact that a person is a co-holder of a bank account does not mean that the money they have access to is theirs. It means they simply have permission to access and can undertake operations.

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"Joint ownership simply implies the availability of funds by either owner, without determining the existence of joint ownership, much less equal shares, of said balance," the resolution states.

This means the Tax Office does not automatically assume that 50 percent of the deposited funds belong to the joint owners. Instead, each joint owner only owns the percentage of money they have contributed.

The Tax Office recognises joint ownership as an "agreement with the financial institution" that does not affect the ownership of the money, and allows for the free use of the funds in that account within the limits of that financial agreement.

This means that, as far as the bank is concerned, both holders can use the funds without considering the percentage contributed by each party.

Be aware though, if it is a true gift, you should still declare it as so and it's likely you will still have to pay gift tax on it.

READ ALSO: Should you Spanish pass your property to your children or sell it to them?

Keep in mind, this only applies while both parties are still alive. If for example, an elderly parent has a joint back account with their adult son or daughter and then dies, Article 1.138 of the Civil Code apply, states that the portion corresponding to the deceased then becomes property of their heirs.

This means that the surviving holder cannot prove a higher percentage of ownership, 50 percent of the deposit would become part of the inheritance and its ownership would pass to the heirs. In this case then they would have to pay inheritance tax on it.

Our journalists at The Local are not tax experts. This article is intended to be helpful and informative, but before making any financial decisions, you should always seek the advice of a professional accountant or gestor.