Yes, she would be taxed. I don’t know what the rate is in the Balearics, but should be easy to find out. I think it’s around 7% in Catalonia, so I imagine something similar. Another option is you loan her the money interest free or very low interest, long term, say 10 years. The problem there is that when you pass away, depending on the value of your estate, that same £60,000 would be taxed at 40% death duties, so if you are worth more than £325,000 or £650,000 in the case of a couple (I’m not exactly sure of the figures) the tax if you gift now in Spain could be much lower than if she inherits after you go (assuming you live another seven years, which of course I hope you do). It’s complicated. You’ll have to consult a fiscal lawyer.