Gift tax

Old Nov 2nd 2006, 1:13 pm
  #16  
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Default Re: Gift tax

Originally Posted by Fred James
I don't think it will make much difference how you transfer the money.

For more details about IHT/Gift tax in Spain look here http://tinyurl.com/hs4jw
Fred, the law doesn't say that if the assets are outside Spain you don't have to pay a gift tax. In fact it explicitly say that you have to pay no matter where the assets come from:

VI.2 REAL DECRETO 1629/1991, DE 8 DE NOVIEMBRE,
POR EL QUE SE APRUEBA EL REGLAMENTO
DEL IMPUESTO SOBRE SUCESIONES Y DONACIONES
Artículo 17. Obligación personal de contribuir

1. A los contribuyentes que tengan su residencia habitual en España se les exigirá el impuesto por obligación personal por la totalidad de los bienes y derechos que adquieran, con independencia de dónde se encuentren situados o del domicilio o residencia de la persona o Entidad pagadora.
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Old Nov 2nd 2006, 3:20 pm
  #17  
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Default Re: Gift tax

Originally Posted by DrStarsky
Fred, the law doesn't say that if the assets are outside Spain you don't have to pay a gift tax. In fact it explicitly say that you have to pay no matter where the assets come from:

VI.2 REAL DECRETO 1629/1991, DE 8 DE NOVIEMBRE,
POR EL QUE SE APRUEBA EL REGLAMENTO
DEL IMPUESTO SOBRE SUCESIONES Y DONACIONES
Artículo 17. Obligación personal de contribuir

1. A los contribuyentes que tengan su residencia habitual en España se les exigirá el impuesto por obligación personal por la totalidad de los bienes y derechos que adquieran, con independencia de dónde se encuentren situados o del domicilio o residencia de la persona o Entidad pagadora.
If the assets are outside Spain and the giver is not a resident then you dont have to pay.

Its the residency and the location of the benefactor that counts.

If you look at section 5.1 on the link I posted it clearly states:-

"In the case of non-resident transferees, only assets situated in Spain are taken into account."

If you feel that these lawyers are incorrect in their interpretation then they give you the option to raise the question directly with them via their website.

Last edited by Fred James; Nov 2nd 2006 at 3:31 pm.
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Old Nov 2nd 2006, 3:36 pm
  #18  
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Default Re: Gift tax

Originally Posted by Fred James
If the assets are outside Spain and the giver is not a resident then you dont have to pay.

Its the residency and the location of the benefactor that counts.

But that's not what the law I quoted above says, to my understanding. And neither the website you gave me says what you claim. What both say is that 1) if the receiver is not resident, then only the transfers of assets located in Spain are taxed; 2) if the receiver is resident, all transfers are taxed, regardless of where they come from.

If I'm wrong, can you quote the relevant passage?
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Old Nov 2nd 2006, 3:37 pm
  #19  
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Default Re: Gift tax

Originally Posted by DrStarsky
But that's not what the law I quoted above says, to my understanding. And neither the website you gave me says what you claim. What both say is that 1) if the receiver is not resident, then only the transfers of assets located in Spain are taxed; 2) if the receiver is resident, all transfers are taxed, regardless of where they come from.

If I'm wrong, can you quote the relevant passage?

ps. the full law is at
http://documentacion.meh.es/doc/C6/O...ones%20ley.htm
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Old Nov 2nd 2006, 3:46 pm
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Default Re: Gift tax

Originally Posted by DrStarsky
But that's not what the law I quoted above says, to my understanding. And neither the website you gave me says what you claim. What both say is that 1) if the receiver is not resident, then only the transfers of assets located in Spain are taxed; 2) if the receiver is resident, all transfers are taxed, regardless of where they come from.

If I'm wrong, can you quote the relevant passage?
I repeat what I said.

If you look at section 5.1 on the link I posted it clearly states:-

"In the case of non-resident transferees, only assets situated in Spain are taken into account."

If you feel that these lawyers are incorrect in their interpretation then they give you the option to raise the question directly with them via their website.
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Old Nov 2nd 2006, 4:42 pm
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Default Re: Gift tax

"In the case of non-resident transferees, only assets situated in Spain are taken into account."

Fred, the transferee is the person who receives the gift, not the giver. So it's like I said in my previous post.

"If you feel that these lawyers are incorrect in their interpretation then they give you the option to raise the question directly with them via their website."

No, I think these lawyers are correct (they are just repeating what the law says) and you are wrong. Thanks for your help though.
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Old Nov 2nd 2006, 5:25 pm
  #22  
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Default Re: Gift tax

Originally Posted by DrStarsky
"In the case of non-resident transferees, only assets situated in Spain are taken into account."

Fred, the transferee is the person who receives the gift, not the giver. So it's like I said in my previous post.

"If you feel that these lawyers are incorrect in their interpretation then they give you the option to raise the question directly with them via their website."

No, I think these lawyers are correct (they are just repeating what the law says) and you are wrong. Thanks for your help though.
I am only repeating what the lawyers said.

Are you now saying that you are a resident tax payer? You failed to mention that.

If you are tax resident, then as the transferee you may well be liable.
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Old Nov 2nd 2006, 5:47 pm
  #23  
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Default Re: Gift tax

Originally Posted by Fred James
I am only repeating what the lawyers said.

Are you now saying that you are a resident tax payer? You failed to mention that.

If you are tax resident, then as the transferee you may well be liable.

Yes, of course I'm a tax resident in Spain, I thought it was clear. Still, your previous statement

"If the assets are outside Spain and the giver is not a resident then you dont have to pay. Its the residency and the location of the benefactor that counts."

is incorrect in general. It is only true if the transferee is not resident.
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Old Nov 2nd 2006, 5:54 pm
  #24  
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Default Re: Gift tax

Originally Posted by DrStarsky
Yes, of course I'm a tax resident in Spain, I thought it was clear. Still, your previous statement

"If the assets are outside Spain and the giver is not a resident then you dont have to pay. Its the residency and the location of the benefactor that counts."

is incorrect in general. It is only true if the transferee is not resident.

Why are you trying to pick holes in everything I say? You seem to know so much about it I cannot understand why you asked the question in the first place.

Rest assured I will not attempt to help in future.
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Old Nov 2nd 2006, 6:05 pm
  #25  
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Default Re: Gift tax

Originally Posted by Fred James
Why are you trying to pick holes in everything I say? You seem to know so much about it I cannot understand why you asked the question in the first place.

Rest assured I will not attempt to help in future.

I didn't know anything until I looked at the law and the website you gave me. And I'm not trying to pick holes, I just asked you if you could explain me the discrepancy between what you claimed and what that website and the law says. It now appears you assumed I was not resident.
Sorry I questioned your infallible authority.
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