Gift Tax

Information and questions about the Law in Spain and Andalucia.
Canela
Andalucia.com Amigo
Posts: 43
Joined: Sun Sep 26, 2010 2:23 pm

Gift Tax

Postby Canela » Fri Dec 14, 2018 12:12 pm

Good morning, If I wanted to give someone a Xmas present of €1000 or €2000, would they have to pay gift tax if transferred to bank account.
Thanks for advice

Paddy Pumpkin
Resident
Posts: 895
Joined: Mon May 01, 2017 12:06 pm
Location: Madrid

Re: Gift Tax

Postby Paddy Pumpkin » Fri Dec 14, 2018 10:05 pm

the legal answer is yes. You should pay gift tax regardless of the method of payment (bank, cash, lottery tickets) The rate is from 7.65 to about 18.25% depending on relationship between donor and receiver.

The receiver is liable for the tax and should complete a Model 651.

That is the legally correct answer.........however in practice do you think people in Spain declare their Xmas gifts even though legally obliged to?

Paddy Pumpkin
Resident
Posts: 895
Joined: Mon May 01, 2017 12:06 pm
Location: Madrid

Re: Gift Tax

Postby Paddy Pumpkin » Fri Dec 14, 2018 10:11 pm

i forgot to add the tax rate depends on where the receiver lives as there are allowances and deductions available depending on which Autonomous Community the receiver lives in

Canela
Andalucia.com Amigo
Posts: 43
Joined: Sun Sep 26, 2010 2:23 pm

Re: Gift Tax

Postby Canela » Sat Dec 15, 2018 10:15 am

Thanks for reply. I mentioned bank transfer because I’m sure no one would declare cash. Just wondered if banks would follow up on transfers.

Beachcomber
Andalucia Guru
Posts: 11081
Joined: Tue Jun 15, 2004 11:11 pm
Location: Guadalhorce Valley

Re: Gift Tax

Postby Beachcomber » Sat Dec 15, 2018 10:33 am

AEAT can access the Spanish bank account of any account holder (including all debits and credits) with a couple of key presses. Don't ever pay in more than you can account for.

Paddy Pumpkin
Resident
Posts: 895
Joined: Mon May 01, 2017 12:06 pm
Location: Madrid

Re: Gift Tax

Postby Paddy Pumpkin » Sun Dec 16, 2018 11:35 am

this is another reason I advocate that people don't hold a bank account in Spain. If you hold a EUR bank account in say Malta it will function just the same as a Spanish bank account but the Spanish authorities cannot see what you are doing so easily. They can access the information but have to go to court to do it. Also the various authorities in Spain cannot freeze the account as they can with a Spanish account.

The Spanish authorities will be automatically told by the other country you have the account and the year end balance but unless they have suspicions they cannot just view the account on a trawling exercise looking to find something. Not that I am paranoid or anything;-)

Manchesteral
Resident
Posts: 1967
Joined: Wed Mar 12, 2014 11:48 pm

Re: Gift Tax

Postby Manchesteral » Sun Dec 23, 2018 7:47 pm

There is absolutely nothing wrong with keeping a Spanish bank account as I'm sure many thousands of foreigners will attest, the secret is keeping just enough there to keep you afloat and maybe 15-20% more (just in case).
I never keep more than €1500-1700 in my Deutsche account at any time.


Who is online

Users browsing this forum: Google Adsense [Bot] and 14 guests