michael4477

My wife is a UK resident and i her husband is a Spanish resident, we have been separated for over 20 years and still good friends, over the past 20 years i have financially supported her, she is now in a position to repay me some of what i have paid her to the tune of approx €20,000.
As a married couple can she transfer this money to my Spanish bank without me declaring it on my next tax return ?
If for some strange reason this has to be declared what would be the Andalucia tax rate for this transaction ?

Rosemary

Hi and a warm welcome to the Spanish forum on BE. Myself and Fred James are the moderators for the Spanish forums whilst myself and BEVS moderate Europe. Please read the Site Rules http://britishexpats.com/site-rules/ adhere to them so that the site runs smoothly. Moderators are there to ensure that the rules of BE are maintained. This is so that members gain the information that they are looking for and find their experiences on the forums to be friendly and worthwhile.

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stevesainty

I would imagine that if you have a modicum of proof that you "lent" her the money, ie. bank statements that show transfers, then the repayment of the loan should not need to be declared for tax purposes.
Tax returns are to declare income, and the only income that may come into play with regard to loans would be any interest added.
In Spain there is such a thing as gift tax though which is why I mentioned the "proof" of the loan.
The Agencia Tributaria would not know anything about a prive arrangement anyway, so if your conscience is clear that these monies are solely a repayment you have nothing to worry about, IMHO.

bobd22

Steves advice sounds good to me also could your wife not split the payments in case say a 20,000 euro may trigger an amount that bank inform tax people of a large deposit. As I can't see that tax department have the ability to monitor every bank account in Spain. But banks may be duty bound to inform deposits over X amount thereby flagging you up? And questions asked. I don't know if this is the case just a thought.

lurchio

Last time I enquired at Santander bank, it was 10,000 euros and above that 'rang the bell'. Its to do with Money laundering regs, and nothing personal!!!!


Enquire at your bank before you go any further. If over the 'limit' they will ask for written proof in the form of invoices / Solicitors accounts/ Affidavits etc. etc.

Pulaski

It is highly likely that banks are looking for patterns of recurring transactions less than the threshold amount, so, say, splitting £20,000 into 4×£5,000 might not only be ineffective, it could be argued to be an attempt to circumvent the rules, which would make a "failure to disclose" issue even greater. Given the almost unlimited power of computers to trawl data, this is a very real risk.

bobd22

Yes that's probably true but then the wife could spread the payments over a period of time surely.

bobd22

I thought it was around that amount

Rotor

Put it in a UK account and use a Caxton card or the likes to draw it out in Spain as and when you need it.

Loafing Along

Simple answer is "Yes" - depends on how much and what level of income you already have. Under Spanish law ( provided it is a judicial sentence ) the person who "pays the pension" is allowed to deduct this from their gross income before paying tax and the recipient has the obligation to declare the income and pay the appropriate personal income tax.

christmasoompa

Moved this post from a duplicate thread which was deleted, as it contains some helpful advice (thx Loafing Along).

OP - please don't keep opening duplicate threads, thanks.