Moving to Spain and Buying a Home with My Spanish Partner: Tax and Legal Considerations

Mortgage Financing as a Non-Resident vs Resident in Spain

Because you are currently a non-resident for Spanish tax purposes, Spanish banks will typically offer a lower loan-to-value (LTV) on a mortgage. Non-resident buyers are usually limited to around 70% financing, meaning you’d need about a 30% down payment . By contrast, Spanish residents often can borrow 80% or more (especially for a primary residence). In fact, there are new programs in Spain to help certain buyers (e.g. first-time buyers under 35 or families with children) get up to 95–100% financing with government-backed guarantees  . This explains why having your partner (a Spanish resident with stable employment) apply for the mortgage alone could yield around 95% financing, whereas a joint application with you (a non-resident) might be capped at ~70% LTV.

Key implications: if the mortgage is solely in your partner’s name, she alone is legally responsible for the debt, but it allows you both to benefit from a much smaller required down payment. Many banks simply view a non-resident co-borrower as higher risk , hence the stricter limit. Using your partner’s sole borrowing capacity leverages her resident status and credit profile to achieve a higher financing percentage.

Ensuring 50/50 Ownership Without Triggering Gift Tax

Your main concern is contributing funds (for the down payment, renovations, and monthly payments) without it being deemed a “donation” to your partner and while securing your equal (50/50) ownership in the property. This is a critical point, as Spanish tax authorities do scrutinize situations where one person’s money is used to benefit another’s asset purchase.

⚖️ Spanish Gift Tax (Impuesto de Donaciones): In Spain, any transfer of assets or money without fair compensation can be considered a gift subject to gift tax. If, for example, your partner alone purchases the property (title in her name) and you simply hand over money for the down payment or renovations, that looks like a gift from you to her. Even if you put both names on the title at 50/50, but you pay more than your half of the cost, the excess you paid on her behalf could be treated as a gift unless there’s an agreement for reimbursement. The Spanish General Directorate of Taxes (DGT) has explicitly addressed this: if one partner pays more than their share of a jointly owned home and the other partner does not reimburse that difference, the transaction is considered a gratuitous donation to the benefiting partner . In a binding tax ruling, the DGT explains that such an arrangement constitutes a “negocio gratuito inter vivos” (gift), and the partner who didn’t contribute equally would be the donee of that gift .

However, there is a lawful way to avoid it being classified as a gift: treat the imbalance as a loan or debt between partners rather than a gift. The DGT in the same ruling noted that if the intention is to “igualar el esfuerzo económico” (equalize the financial effort), one partner’s extra contribution can be structured as a loan to the other partner . In other words, you can formalize a private loan agreement for any money you contribute toward your partner’s share of the purchase or renovations. If you lend her €60k for renovations or €30k to make up part of the down payment, and there is a binding agreement that she will owe you that money (even if to be repaid in the future or upon sale of the property), then it’s not a gift and no gift tax is triggered. It’s wise to put such an agreement in writing, ideally in a notarized document, to have legal proof of the loan. This document should spell out how much money was lent, that it’s interest-free (if you choose), and the terms of repayment or the conditions (for example, it might state the loan will be repaid when the property is sold, or by gradually offsetting it as you assume mortgage payments, etc.). Spanish law allows private loans between individuals; they are exempt from transfer tax and not treated as donations as long as they’re genuine loans with an obligation to repay .

Additionally, since you plan for a 50/50 co-ownership, it would be prudent to document each party’s contributions and ownership percentage in the purchase deed or a separate agreement. Even for unmarried couples, experts recommend signing a co-ownership agreement when buying property together  . In this agreement, you can specify that the property is owned 50/50 by you and your partner, list how much each of you contributed to the down payment, who will pay what portion of the mortgage, and how future expenses (or the value of renovations paid by one party) will be accounted for. This serves two purposes: (1) It legally solidifies your 50% ownership from the start, and (2) it provides evidence that any disproportionate contributions were intended to be settled equitably (supporting the loan-not-gift characterization). The agreement can also cover what happens in various scenarios (e.g. if the relationship ended, how to handle the property and reimbursements), which is outside the tax scope but wise for general protection .

Bottom line: To avoid the Spanish gift tax, do not simply give your partner money without formal structuring. Either (a) be a co-owner who pays your share directly (and if you pay more than your share, record it as a loan or increased ownership stake), or (b) if the property is initially only in her name, treat all your payments (down payment, renovation costs, mortgage contributions) as loans to her until such time as you are added as co-owner or are otherwise compensated. By doing this, you have paper trails showing the intent of repayment, so the tax authority cannot claim you gratuitously enriched your partner.

Co-Ownership Options: Immediate vs. Delayed

You ultimately want to end up with the home owned 50/50 by you and your partner. There are a few ways to achieve this, each with pros and cons:

• 1. Joint purchase from the start (both names on title): If possible, this is the cleanest solution for establishing co-ownership. You and your partner would both appear as buyers in the property deed, each owning 50%. Even if the mortgage loan is only in her name, Spanish banks typically require any property owners to sign the mortgage deed as well, or at least to formally consent to the mortgage, since the house is collateral for the loan . In practice, the bank might insist that you also become a co-debtor or guarantor if you’re on the title, because ownership and debt responsibility usually go hand-in-hand . Some banks, however, may allow the property deed to include a non-borrower spouse or partner, as long as that person signs off on the mortgage lien. You would need to discuss this with the lending bank – policies can vary. If they agree, this approach means from day one you legally own 50% of the home. You would contribute whatever amount (say €65k for down payment and/or renovations) and she contributes her amount (€35k, etc.), and you both sign a cuotas indivisas of 50% each in the deed. Important: if your contribution is larger, remember to execute the loan agreement or include in the deed that you paid X more which is recognized as a debt or a larger initial contribution on your side. Since you want a true 50/50 split, likely you will characterize the excess as a loan to her as discussed above. Joint purchase avoids any need for later transfers of ownership (which can incur taxes).

• 2. Sole purchase by your partner, then later adding you as co-owner: This might happen if the bank absolutely requires the mortgage to be in her name only and will not allow you on the deed now. In that case, your partner would initially take 100% title of the property. You would still provide funds (for down payment, etc.), preferably via a loan agreement as noted, to avoid it being a gift. Then, once circumstances allow (for example, after you move to Spain, start working, or after you get married/registered as partners), you could transfer ownership of half the house to yourself. There are a few sub-options here:

• Formal sale of 50% to you: Your partner could sell you half of the property, perhaps at the original price proportion (or another agreed value). However, this route triggers Impuesto de Transmisiones Patrimoniales (ITP) – essentially transfer tax – on the value of the portion transferred, which can be quite significant (regional ITP rates range ~6-10%). It also might involve capital gains tax for her if the property value rose. This is generally not the most tax-efficient method unless the amounts are small or the region has an exemption (which is uncommon for sales between partners).

• Gifting 50% to you: If your partner simply gifts you half the home, that triggers Spanish gift tax (ISD) for you as the recipient. The tax could be high because, as an unmarried, unrelated person (if you haven’t formalized the partnership), you’d be in the worst tax category (Group IV “strangers”) with little to no exemption  . Even if you are married or registered partners, a gift of half the house would typically still require filing ISD, though many regions offer large reductions (up to 99%) for gifts between spouses or direct family . For registered unmarried couples, some regions likewise extend the spouse treatment but only if certain conditions are met (e.g., being in the official regional pareja de hecho registry)  . In short, a direct gift is not ideal unless you qualify for a near-100% exemption – and even then, it’s paperwork and risk if not done exactly right.

• Marital community property (gananciales) route: A very tax-efficient strategy, if you choose to get married, is to use Spain’s community property system (“sociedad de gananciales”). If you marry before the purchase, you can simply buy the house as a couple and declare it a gananciales asset, meaning it belongs to the marital community jointly. Even if the mortgage is only in one name, the house can be owned by the marital partnership as a whole. If, however, your partner buys the house in her name first (while you’re not yet married) and later you marry, you can opt through a marriage agreement (capitulaciones) to bring that house into the community property pool. The Spanish Supreme Court ruled in 2021 that when one spouse contributes a personal asset (like a house) into the community property, it is not considered a taxable transfer – not a gift, not a sale  . Essentially, no ITP or gift tax applies because the ownership isn’t seen as moving from one person to another, but rather to the marital economic unit (which by law is not a separate taxable person)  . This means if you marry and choose the gananciales regime, your partner could subsequently aportar la vivienda al patrimonio ganancial (contribute the house to the community). You would then both jointly own it as part of the marriage assets, without any gift/transfer tax on that contribution  . There would also be no stamp duty on that contribution. (Do note that the bank’s consent might be needed if the mortgage is still outstanding, but generally they care that the debt is paid, and both spouses in a community are typically responsible for a mortgage on the family home after such a contribution.)

In summary, the safest immediate way to ensure 50/50 ownership is to be co-owner from the outset if at all possible. If the bank or timing makes that impossible, then using a combination of a loan agreement + later formalization is the next best approach. Later formalization could be marrying and using the community property mechanism (which avoids taxes), or if not marrying, potentially a sale of interest once you’re a Spanish resident (but again, that sale would incur transfer tax). Many couples in Spain in your situation choose to formalize the relationship (either marriage or registered partnership) before or during the property purchase precisely to facilitate joint ownership and avoid tax complications.

Marriage vs. Pareja de Hecho: Choosing a Legal Status for Fiscal Benefits

You mentioned you are considering formalizing your relationship either as a pareja de hecho (registered domestic partnership) or marriage, not just for personal reasons but also for the fiscal/legal advantages. Here’s how each might impact your situation:

• Marriage: If you get married, Spanish law (by default in most regions) will place you in the “régimen de gananciales” (community property) unless you opt for “separación de bienes” (separate property) in a prenup/capitulations. Under gananciales, most assets acquired during the marriage (and not explicitly designated as separate) are jointly owned by the spouses, and each spouse has a 50% interest in the community as a whole. This is very convenient for your home purchase: buying a home during the marriage with community funds (or with one spouse’s financing) would automatically mean both spouses own it together, no matter who paid the money or who took the loan. It bypasses the need for complex structuring to avoid gifts, because any contribution you make from your income after marriage is by definition a contribution to a shared asset rather than to the other person individually. Moreover, as discussed above, even bringing in a previously owned asset (like if she already bought the house) into the community can be done without gift tax . From a tax perspective, spouses are in Group II for inheritance and donations, which in many Autonomous Communities is heavily favored (often a 99% tax reduction on the tax bill, effectively near-zero in regions like Madrid, Andalusia, Valencia, etc., for inter-spousal gifts/inheritances) . National law still technically classifies spouses in Group II (whereas an unmarried, unrelated partner is Group IV “stranger” ), so being married generally ensures maximum tax exemptions for any future wealth transfers between you (gifts or inheritance). Also, marriage could allow you to file joint income tax if beneficial (Spain allows joint filing for married couples, though it depends on numbers whether that saves money).

• Pareja de hecho (Registered Partnership): Spain does not have a nationwide law for domestic partnerships; it’s regulated at the regional level. Registering as pareja de hecho can confer some benefits similar to marriage, but it’s not uniform across the country. Many regions (for example, Community of Madrid, Andalusia, Catalonia, etc.) have laws that equate registered partners to spouses for inheritance and gift tax purposes, provided you meet the region’s registration requirements  . Usually this means you must officially register in that Autonomous Community’s own registry (sometimes a local city registry alone is not enough) to be recognized. If properly registered, you would be treated like spouses (Group II) for Impuesto sobre Sucesiones y Donaciones, which greatly reduces or eliminates those taxes on transfers between you . However, note that not all regions are equally generous to parejas de hecho – some require a certain cohabitation period or specific registration, and a few might not grant the full 99% reduction that spouses get, so it’s worth checking the law in the region where you’ll live and buy the house. Legally, being registered partners does not automatically make your properties jointly owned. There is no “community property” regime for unmarried couples, so if you go this route, you’d still need to explicitly take title in both names or have contracts to share assets. Pareja de hecho status may help with mortgage applications (some banks consider it similar to marriage for joint applications) and gives some rights (like possibly pension rights, use of family insurance, etc.), but for property, you must proactively structure ownership since the default is that each keeps their own property unless agreed otherwise.

• Staying Unformalized (no marriage or registro): It’s certainly an option to neither marry nor register as pareja de hecho, but fiscally it’s the least favorable. As mentioned, any money flows between you two are then treated as between unrelated individuals in the eyes of the taxman (no preferential treatment – you’d be taxed as strangers on any gifts/inheritance). Also, in legal terms, you don’t benefit from any default property regime or automatic rights. You would rely entirely on contracts (co-ownership agreements, wills, etc.) to protect each other’s interests. It’s doable, but given you are willing to formalize and are anyway thinking about it, either marriage or pareja de hecho would simplify life.

Which to choose? If your priority is maximizing tax and property advantages, marriage (with community property) is the most clear-cut route. It instantly places you in the favorable category for taxes and ensures joint ownership of acquisitions. A registered partnership can achieve many of the same tax benefits if you diligently register in the correct way and possibly also name both on deeds, but it’s slightly more cumbersome to ensure everything is recognized (because, for example, if you move regions, you’d need to re-register the partnership in the new region’s registry to maintain benefits  ). Since you indicated you’re open to either and were considering formalizing for personal reasons too, marriage might offer a more robust solution. If for personal reasons you prefer not to marry immediately, then at least register as pareja de hecho before injecting funds into the house, and put both names on the property if you can. That way, from day one you’re co-owners and your contributions are for your own share (not a gift), and your partner status could help mitigate any tax if questions arise. Remember, the partnership registration should ideally be done in the region where the property is and where you’ll reside, and follow that region’s rules to ensure you’re treated like spouses for tax. For instance, registering in a local city hall might not be enough for the regional tax authority – often it has to be the Autonomous Community’s official register to count  .

In either case (marriage or pareja de hecho), formalizing your relationship will also give you peace of mind on non-tax fronts: inheritance rights (the survivor can inherit the home more easily, often with tax breaks, whereas an unmarried, unregistered partner could face both legal challenges and high inheritance tax), decision-making in emergencies, etc. Given that you plan to “asentaros y formar una familia,” these legal ties can be quite important for the long term.

Timing of Your Move and Tax Residency Considerations

Finally, a note on tax residency: you are currently only a German tax resident (as of July 23, 2025). If you move to Spain this year (2025), whether you become a Spanish tax resident for 2025 depends on the timing. Spain’s rule, like many countries, is that tax residency is acquired by spending more than 183 days in Spain in a calendar year, or having your main center of economic interests in Spain . If you move in the latter part of 2025 (say, September), you will not meet the 183-day threshold this year and thus for the 2025 tax year you’d remain a non-resident of Spain (and presumably still resident in Germany for most of the year). In that scenario, you would only become Spanish tax resident starting in 2026 (once you’ve spent >183 days of 2026 in Spain).

What does this mean practically? In the year you move, there’s usually no partial-year residency in Spain – you’re either considered resident the whole year or not at all. So if you indeed move in the second half of 2025, you won’t have to file Spanish income taxes as a resident for 2025. You would continue to be taxed in Germany on your 2025 worldwide income. Starting 2026, you’d report worldwide income in Spain (and likely become non-resident in Germany if you’ve cut ties there). It also means any actions in 2025 (like any money transfers or property purchase) you undertake, you’re doing so as a non-resident in Spain. For example, if you co-own Spanish property in late 2025 while still a non-resident, you might be subject to Spain’s non-resident property tax on your share for that portion of the year (this is a minor annual tax on imputed rental income for non-resident owners). Once you’re a resident and if it’s your primary home, that imputed income tax no longer applies. This is a small point but worth being aware of. Also, any rental income or other Spanish-source income you have before becoming resident would be taxed under non-resident rules (flat rates, etc.), but if you’re not renting out the property, that’s moot.

From a planning perspective, if you are able to choose, moving in early 2026 might simplify things – you’d cleanly finish 2025 as a German resident and start 2026 as a Spanish resident. However, if life dictates moving sooner, it’s not a big problem; just be mindful of the 183-day rule. You are correct in your understanding: even if you move in late 2025, you wouldn’t meet tax residency criteria for Spain this year. Make sure to keep documentation of your days and when you formally register in Spain (e.g., obtaining your NIE/TIE, registering with the town hall “padrón”, etc.) to support your residency status if ever needed.

One more consideration: once you become a Spanish tax resident, if you still had any significant assets or accounts abroad (e.g., in Germany), you’ll have new obligations like the Modelo 720/721 informative declaration for foreign assets if they exceed certain thresholds. And as a Spanish resident, any large gifts you make or receive worldwide can also become subject to Spanish gift tax rules (Spain taxes residents on worldwide assets for inheritance/gifts). But by the time you’re a resident, hopefully you and your partner will be married or officially partnered, so transfers between you will either be unnecessary (since you own things jointly) or at least tax-favored.

Conclusion and Recommended Safe Options

Considering all the above, here are the viable and secure options to achieve your goals of buying a home together in Spain, maximizing mortgage financing, and avoiding unwanted taxes:

• Option 1: Formalize your relationship (preferably marriage) before or during the home purchase. This is the most straightforward path. If married under community property, proceed to buy the house jointly as a marital asset (gananciales). Your partner can take out the mortgage in her name (taking advantage of up to 95% financing), but you would both be listed as owners. Your contributions would simply be contributions to a joint marital asset (no gift implications at all). If the bank won’t allow your name on the title initially, you still avoid gift tax because any money you contribute is effectively to the marital community. Later, you can formalize that by having the house contributed into gananciales (tax-free ). Marriage ensures that even if the paperwork lags, the law is on your side regarding joint property and family protections. If marriage isn’t immediately on the cards, register as pareja de hecho and ensure you meet the requirements of your region for tax recognition . Then, buy the property jointly if possible, and/or use a loan agreement for any disproportionate contributions. Being officially recognized as a couple will at least put you in a much better position tax-wise than remaining “solteros” with respect to each other.

• Option 2: Have your partner buy in her name now, use a loan agreement for your funds, and add you as owner once you’re a resident or married. This two-stage approach might be necessary if the bank or timing constraints prevent joint purchase now. The critical part in stage one is documenting your financial contribution as a loan (or as a pending ownership interest). For example, if scenario (1) from your examples happens – she puts €35k, you put €65k – you could acknowledge that half the house cost corresponds to each of you, so effectively €15k of your money went toward her share. You would draft a simple contract where she recognizes a debt of €15k to you (or whatever amount of your funds did not go toward your half of the purchase). Likewise for renovations: if you pay €60k for improvements on a house that is in her name, have a contract stating this is a loan or that it will count as an increase in your equity when you become co-owner. Keep proof of all transfers (bank transfers labeled as loan, etc.). Then in stage two, once you’re an official couple or you have moved and can refinance, you would transfer ownership. If married by then, the best method is contributing the home into community property (no tax hit) . If not married but you decide to sell half to yourself, try to minimize the tax by doing it when any regional benefits or personal circumstances are optimal (and remember that as registered partners you might get some break on the gift tax if you chose the gift route in a region that honors it). It’s a bit more complex than Option 1 but still workable. The key is that during the interim, you have legal agreements so that economically you are 50% owner de facto, even if not on paper yet.

• Option 3: Wait until you move and become a Spanish resident (e.g. early 2026), then do a joint purchase and mortgage. If you’re not in a rush to buy right now, one idea is to postpone the purchase until you can be a co-borrower as a Spanish resident. Once you live and work in Spain, you might both qualify for a decent mortgage (perhaps not 95%, but maybe 80-90% together, or still using the ICO guarantee if you qualify as first-time buyers). This way you can avoid all the interim complications. However, the downside is the housing market and personal timing – you might not want to delay your plans, and the special 95% financing programs are active now (some are time-limited to 2025)  . Also, if the perfect property comes along, waiting could mean losing it. So this is only if it aligns with your life plans; otherwise, go with Option 1 or 2.

Considering you likely want to move sooner rather than later and start your life in Spain, my strongest recommendation is a combination of Option 1 (formalize relationship) and the mechanisms from Option 2 (loan agreements to avoid any hint of donation). This provides belt-and-braces protection: no gift tax issue, clear 50/50 intention, and use of your partner’s resident status for the mortgage. It seems you’re already inclined to start this new chapter “con buen pie”, so sorting out these legalities in advance will save you from costly surprises (like a potential gift tax bill) and ensure both of you are protected owners of your home from day one.

Sources:

• Mortgage for non-residents vs residents – typical LTV limits  and new ICO-backed high-LTV programs for young buyers  .

• Spanish tax authority ruling on donation vs loan in unequal home purchase contributions (Consulta V0721-22)  .

• Expert advice on co-buying property as an unmarried couple – importance of documenting contributions and ownership percentages  .

• Tax treatment of spouses vs. unregistered partners: Autonomous Community laws equating registered partners to spouses for Inheritance/Gift tax   (vs. being treated as strangers if not formalized ).

• Spanish Supreme Court 2021 decision confirming that transferring a house into marital community property is not taxed as a gift or transfer  .

• Definition of Spanish tax residency (183-day rule) for distinguishing resident vs non-resident status .