Gift Tax exemptions

Information and questions about the Law in Spain and Andalucia.
Spannerdave
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Gift Tax exemptions

Postby Spannerdave » Mon Feb 04, 2019 10:38 am

Good Morning,

I wonder if anyone could help. I am trying to find out if I am able to send a gift of money to a member of my family who owns a property in Andalusia as a non resident. As I understand it the recipient of moneys received by way of a spanish bank could be liable to pay gift tax. Having said that a search for information has quoted that there are allowances in Andalucia for family memberes (children) but I just can't find the details.


It may be better for me to contact a gestor but anyone with advice ??


many thanks.........Dave

Manchesteral
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Re: Gift Tax exemptions

Postby Manchesteral » Mon Feb 04, 2019 11:50 am

This is what happened to me/my friend: On two occasions last year my rent in Las Palmas was due, however as I was not there at the time I put my rent money to my friends bank account in Las Palmas and he paid it for me.
After the second transaction my friend received a letter through the bank from the tax authorities in Spain demanding to know
what the money was for.
He went to the bank and explained the situation, we have heard nothing since, however should this situation arise again I will pay it to his Finnish bank, he will then transfer it to his bank in Spain and withdraw the money from there.

El Cid
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Re: Gift Tax exemptions

Postby El Cid » Mon Feb 04, 2019 12:58 pm

Manchesteral wrote: He went to the bank and explained the situation, we have heard nothing since, however should this situation arise again I will pay it to his Finnish bank, he will then transfer it to his bank in Spain and withdraw the money from there.
This is almost certainly a money laundering issue and nothing to do with potential gift tax. The banks have to check out large transaction.

Sid

El Cid
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Re: Gift Tax exemptions

Postby El Cid » Mon Feb 04, 2019 1:05 pm

Spannerdave wrote: I am trying to find out if I am able to send a gift of money to a member of my family who owns a property in Andalusia as a non resident.
Assuming you are non resident, there would be no gift tax as the asset was not a Spanish asset and the recipient is non resident.

Again, it is important to be able to show where the money originated to avoid questions from the bank.

Sid

Paddy Pumpkin
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Location: Madrid

Re: Gift Tax exemptions

Postby Paddy Pumpkin » Mon Feb 04, 2019 3:30 pm

Spannerdave wrote:Good Morning,

I wonder if anyone could help. I am trying to find out if I am able to send a gift of money to a member of my family who owns a property in Andalusia as a non resident. As I understand it the recipient of moneys received by way of a spanish bank could be liable to pay gift tax. Having said that a search for information has quoted that there are allowances in Andalucia for family memberes (children) but I just can't find the details.


It may be better for me to contact a gestor but anyone with advice ??


many thanks.........Dave

As long as the sender and receiver are not tax resident in Spain then there are no Spanish tax implications to receiving money in to a Spanish bank account. Note that there may be implications for the sender and receiver in the countries in which they are resident.

However as other replies point out the money laundering may rear it's head and the transfer can be frozen. Each bank in the OECD is required to have anti money laundering procedures in place. In the first instance the receiving bank may hold the payment until the receiver can provide documentation to show that the funds were obtained from a legitimate source. So if you are going transfer money from anywhere to anywhere in Europe you should be ready and willing to provide documents that satisfy the bank that the funds were obtained legitimately. This is true of transfers even within the same country.

My experience is Spanish banks are the stand out winners in Europe for requiring documentation for relatively small amounts even when it is between accounts owned by the same person. ....you have been warned.

elusive
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Re: Gift Tax exemptions

Postby elusive » Sat Sep 28, 2019 4:23 pm

El Cid wrote:
Spannerdave wrote: I am trying to find out if I am able to send a gift of money to a member of my family who owns a property in Andalusia as a non resident.
Assuming you are non resident, there would be no gift tax as the asset was not a Spanish asset and the recipient is non resident.

Again, it is important to be able to show where the money originated to avoid questions from the bank.

Sid
Could you just clarify on this cid. Ive read by youself and many other sites. That the only two issues are whether the asset was in spain or if the recipient is a spanish resident.

My question is as a spanish resident with a uk asset (cash in the bank) that i want to give to a family member that is a uk resident then there is no issue as neither asset or recipient is in spain. Reading what you say above implies (prob reading it wrong i hope) that if the giver is a spanish resident then any asset anywhere is classed as a spanish asset?

Below is what you wrote in another thread which goes with what i was thinking. Or is your definition of a spanish asset anything anywhere in the world that is owned by a spanish resident?


Assets in Spain are always liable to IHT, irrespective of the residency of the beneficiary. UK assets are only liable if the beneficiary is resident. Non residents pay no tax on non Spanish assets.

elusive
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Re: Gift Tax exemptions

Postby elusive » Sat Sep 28, 2019 4:56 pm

Found this old thread where you have answered it for me already.

viewtopic.php?t=35791


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