Tax regulations for domestic workers and property donations in Spain

Domestic workers in Spain are subject to specific tax rules regarding Personal Income Tax (IRPF). Because private employers are not considered withholding agents, they do not deduct IRPF from monthly salaries. Consequently, the annual income threshold that requires a worker to file a tax return is reduced to 15,000 euros, compared to the standard 22,000 euros for a single payer. Additionally, domestic workers must be registered with Social Security from their first hour of work, with costs shared between the employer and employee.

Regarding property, individuals over 65 may benefit from an IRPF exemption on capital gains when selling or donating their primary residence. To qualify, the property must have been the donor's habitual residence, typically for at least three continuous years. If the donor has already moved, they have a maximum of two years to formalize the transfer to maintain the exemption. However, this state-level exemption does not eliminate other obligations; recipients may still be liable for regional donation taxes or local taxes.