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

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

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

thanks Fred


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

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.

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.

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

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

All the very generous IHT allowances rarely apply to gifts.

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

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.

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?

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.

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.

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!