Transferring money from a Hong Kong bank

[Manchesteral]

A general question regarding finance.

I am trying to help a fellow brit, a llong term aquaintence of mine. If I transfer say 6/7000 euros from a hong Kong bank to his Spanish account what are the rules I need to follow, will there be any likely repercussions, would it be better to transfer it directly from my spanish accoun to his.

[chrissiehope]

I would have thought it would be simpler to just transfer from your Spanish account to his. If you need to transfer funds from your Hong Kong bank to your Spanish bank to cover it, I would do that as a separate transaction. Only my opinion

[elusive]

I guess theres issues of gift tax regardless of which account you pay it out of if its not declared. But depending on the allowance for where you are it might not be much anyway.

[Manchesteral]

I guess theres issues of gift tax regardless of which account you pay it out of if its not declared. But depending on the allowance for where you are it might not be much anyway.

It would be in the form of a loan to be repaid when his divorce is settled if I put that as a reference on the transfer order would that be accepted as declared.

[elusive]

I couldnt say manch.. cids good on this stuff maybe he can advise?

[El Cid]

It’s up to him to declare it as a gift. Allowances for gift tax are usually zero and for a non relative even more unlikely and at a higher tax rate.

You can’t just say it’s a loan and hope it’s OK. It’s his problem not yours.

Sid

[Manchesteral]

OK, thanks for all your replies !

[Paddy Pumpkin]

A general question regarding finance.

I am trying to help a fellow brit, a llong term aquaintence of mine. If I transfer say 6/7000 euros from a hong Kong bank to his Spanish account what are the rules I need to follow, will there be any likely repercussions, would it be better to transfer it directly from my spanish accoun to his.

You also need to consider the money laundering controls etc. Money into Spanish bank accounts from Asia is difficult enough when both sender and receiver is the same person when it is a different person the controls get tighter. Consider sending the money from your HK account to your account in the EU and then making a further transfer on to your friends Spanish account.

[Paddy Pumpkin]

I guess theres issues of gift tax regardless of which account you pay it out of if its not declared. But depending on the allowance for where you are it might not be much anyway.

It would be in the form of a loan to be repaid when his divorce is settled if I put that as a reference on the transfer order would that be accepted as declared.

Loans must be declared with a Notary. For this amount cash would be the best way. Another alternative is to give your friend the loan in the form of a pre loaded debit card or via PayPal. Or get your friend to open a Revolut or N26 GERMAN IBAN account as the authorities here would need a court order in Germany or Lithuania to see what went on in the bank account....which they won't be doing for 6k