Declaring gift to Spanish Authorities
 

Does anyone know/have experience about the process of declaring a financial gift (coming from abroad) to the Spanish authorities? e.g. Is it easy to do, or long and costly?

TIA

Re: Declaring gift to Spanish Authorities
 

Doesn't it just go on the annual tax return?

Re: Declaring gift to Spanish Authorities
 

No, it goes on Form 651 and it must be submitted within 30 days of receiving the gift.

https://www.agenciatributaria.es/sta...703/mod651.pdf

Re: Declaring gift to Spanish Authorities
 

thanks Fred


- we were told wrongly then bu our accountant (biggest one for Brits in Spain by-the-way)

Re: Declaring gift to Spanish Authorities
 

As a matter of interest who was that firm. BF? It is just I have had conflicting advice about this. Remember gifts and IHT are the same in Spain. Also remember there are generous exemptions depending where you live.

Re: Declaring gift to Spanish Authorities
 

Yes it was BF.

Basically we opened an investment account with Banesto (now Santander) and were given a large smart TV as a 'gift'. The tax (seemed to me ) was more than the TV was worth.

Re: Declaring gift to Spanish Authorities
 

How could you pay taxon a gifted TV? There are exemptions in nearly every community of thousands before any taxis paid!

Re: Declaring gift to Spanish Authorities
 

And those exemptions don't apply if the gift is received from someone you are not related to - a company, in this case.

Re: Declaring gift to Spanish Authorities
 

All the very generous IHT allowances rarely apply to gifts.

Re: Declaring gift to Spanish Authorities
 

I thought that gifts and inheritance were all treated under the same law ISD?. Is this not right?

Re: Declaring gift to Spanish Authorities
 

The law is the same but each region can decide on the allowances. There is a basic state allowance but the regional allowances vary enormously. The fact that you only get 30 days to declare is a state law. It is extremely complicated.

Re: Declaring gift to Spanish Authorities
 

My bank also gave me a gift of a TV a few years ago for keeping a certain amount in the account, are you saying I should have declared it?

Re: Declaring gift to Spanish Authorities
 

I dont know if you declare it on a 650 but I can't imagine there could be much tax on the value of a TV. Not sure how anyone would know unless the bank are required to tell and besides why would anyone accept a gift that costs you money. Finally it cant be pursued after 4 years.

Re: Declaring gift to Spanish Authorities
 

I remember that a few years ago a Spanish colleague told me a sobering tale.

He had won a 'competition' at his bank and the prize was an all expenses trip to Japan for two valued at 6000€. They went and enjoyed the experience but the following year on the borrador of his tax return he was liable for 1200€ tax as the bank had reported his win to Hacienda. He was annoyed for two reasons, first he reckoned that 6000€ was an inflated value of the actual trip and the second was that he was about to marry and it hadn't budgeted for such a tax bill. If he'd known, he would have declined the prize.

Re: Declaring gift to Spanish Authorities
 

Another example of what the Hacienda can do is the money the state gave you under the car scrappage scheme. The money they gave you, €2000, was taxable. Give it with one hand and take it away with the other!