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Boris Johnson has confirmed he stayed for free at a holiday home owned by the family of Lord Zac Goldsmith - who received a peerage from the PM in 2019.
In a list of ministers' interests, it says the PM has "a longstanding personal friendship" with the family and "in that capacity" stayed at their place in southern Spain last month.
Downing Street had previously refused to confirm if the trip had taken place.
But it said all donations would be recorded in the normal way.
Lord Goldsmith is close friend of the prime minister's wife and gave her her first job in politics.
He lost his seat as an MP for Richmond Park in 2019, but retained his job as an environment minister after Mr Johnson appointed him to the House of Lords.
At the time, Labour condemned the appointment as "jobs for mates".
Mr Johnson has previously been criticised over being slow to explain how his holiday to the Caribbean island of Mustique was funded.
An investigation by the Committee on Standards found he had not broken the rules but criticised the arrangements as "ad hoc and informal".
The government is supposed to publish a list of any financial benefits received by ministers twice a year.
The most recent list includes the declaration that: "The prime minister has a longstanding personal friendship with the Goldsmith family and, in that capacity, in October 2021, stayed in a holiday home in southern Spain which was provided free of charge by the Goldsmiths.
"Given Lord Goldsmith is a minister of the crown, the arrangement has accordingly been declared."
Mr Johnson may also declare the holiday gift in the register of MPs' interests, which is likely to include details about the cost of the donation.