Transferring smallish amount of money (gift) from UK
Dec 28th 2021, 1:44 pm
#1
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Transferring smallish amount of money (gift) from UK
I'm resident in Spain and my UK-based parents would like to generously gift me £10,000. I've done some reading around and I understand that anything from €10,000 would need to be declared with Hacienda.
I don't need the money all at once, would it be less complicated to transfer part of it now and another part in the distant future to avoid entering into Hacienda's bureaucracy?
Many thanks in advance.
I don't need the money all at once, would it be less complicated to transfer part of it now and another part in the distant future to avoid entering into Hacienda's bureaucracy?
Many thanks in advance.
Dec 28th 2021, 1:54 pm
#2
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Re: Transferring smallish amount of money (gift) from UK
Originally Posted by mango44
I'm resident in Spain and my UK-based parents would like to generously gift me £10,000. I've done some reading around and I understand that anything from €10,000 would need to be declared with Hacienda.
I don't need the money all at once, would it be less complicated to transfer part of it now and another part in the distant future to avoid entering into Hacienda's bureaucracy?
Many thanks in advance.
I don't need the money all at once, would it be less complicated to transfer part of it now and another part in the distant future to avoid entering into Hacienda's bureaucracy?
Many thanks in advance.
Dec 28th 2021, 2:04 pm
#3
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Re: Transferring smallish amount of money (gift) from UK
Originally Posted by Chipmonk
I would imagine that small amounts wont attract any serious attention especially given the fact that it is not large enough to be taxable.
I thought that gift tax started at around 8000€ ?
I agree about keeping the transfers small though
Dec 28th 2021, 8:10 pm
#4
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Joined: Jul 2012
Posts: 779
Re: Transferring smallish amount of money (gift) from UK
Originally Posted by mango44
I'm resident in Spain and my UK-based parents would like to generously gift me £10,000. I've done some reading around and I understand that anything from €10,000 would need to be declared with Hacienda.
I don't need the money all at once, would it be less complicated to transfer part of it now and another part in the distant future to avoid entering into Hacienda's bureaucracy?
Many thanks in advance.
I don't need the money all at once, would it be less complicated to transfer part of it now and another part in the distant future to avoid entering into Hacienda's bureaucracy?
Many thanks in advance.
It could be your money in a uk account and they are sending to you.
There aint no tax on that.
Dec 28th 2021, 9:08 pm
#6
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Posts: 372
Re: Transferring smallish amount of money (gift) from UK
WARNING : Don't take this as gospel but having just researched it again for myself I think the following is currently accurate.
This gift is governed under the rules known as Impuesto de Sucesiones y Donaciones and is an inter vivos gift.
As you are tax resident in Spain the gift IS taxable.
In all probability it also has to be declared using form 651 within 30 days.
The tax payable is very dependant on your wealth and income.
It is also very dependant on which autonomous community you live in and in some cases how long you have lived there for.
The good news is in the two I know a little about, Madrid and Andulucia, the tax payable would be nil or next to nil in your case as a Group 2 person. ( Same applies for much larger gifts ).
Do however follow the rules.... For example to benefit from the exemption/reduction the gift has to be notorised. ( At least in Madrid and I think Andulucia as well. )
Best
Loco
This gift is governed under the rules known as Impuesto de Sucesiones y Donaciones and is an inter vivos gift.
As you are tax resident in Spain the gift IS taxable.
In all probability it also has to be declared using form 651 within 30 days.
The tax payable is very dependant on your wealth and income.
It is also very dependant on which autonomous community you live in and in some cases how long you have lived there for.
The good news is in the two I know a little about, Madrid and Andulucia, the tax payable would be nil or next to nil in your case as a Group 2 person. ( Same applies for much larger gifts ).
Do however follow the rules.... For example to benefit from the exemption/reduction the gift has to be notorised. ( At least in Madrid and I think Andulucia as well. )
Best
Loco
Dec 28th 2021, 10:45 pm
#7
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Posts: 372
Re: Transferring smallish amount of money (gift) from UK
Anyone who thinks the Hacienda don't bother about small amounts or don't have access to UK records post Brexit should think again.
They launched an investigation against one of my friends recently, a retired teacher from the UK who for years has declared everything using a legal firm who also claim to be gestoria and asesoría fiscal.
Her affairs are simple enough :
Tax Residency:
Spain
Income :
Uk State Pension and UK Teachers Pension
Assets:
Effectively none other than her Spanish House she lives in.
You would think this couldn't go wrong. Well it did!
Spotting a minor error in a submitted return she advised her advisors. They declared the error to the Hacienda and pointed out it would make little or no difference to the tax due. They were correct. The tax bill increased by less than a couple of hundred, no penalties were applied, it was paid and that seemed the end of it.
A few monthes later she received a letter from the Hacienda stating they had become aware of ( an exact amount to the cent that was less the 2,000 euros ) of income she had not declared from three years ago and asking for huge amounts of paperwork for that tax year, two years before it and for every year since. Annexed were 2 or 3 pages about the penalties for failure to supply, failure to fully disclose etc etc.
My Point ?
The Hacienda launched a tax investigation over a very small amount of money they thought she hadn't declared and despite her having fully declared for years and even self declaring the minor error.
The amount they mentioned in the letter without explaining where they got the figure from was so precise I thought it must have come from the UK under the exchange of info rules.
Turned out I was right.
Best
Loco
They launched an investigation against one of my friends recently, a retired teacher from the UK who for years has declared everything using a legal firm who also claim to be gestoria and asesoría fiscal.
Her affairs are simple enough :
Tax Residency:
Spain
Income :
Uk State Pension and UK Teachers Pension
Assets:
Effectively none other than her Spanish House she lives in.
You would think this couldn't go wrong. Well it did!
Spotting a minor error in a submitted return she advised her advisors. They declared the error to the Hacienda and pointed out it would make little or no difference to the tax due. They were correct. The tax bill increased by less than a couple of hundred, no penalties were applied, it was paid and that seemed the end of it.
A few monthes later she received a letter from the Hacienda stating they had become aware of ( an exact amount to the cent that was less the 2,000 euros ) of income she had not declared from three years ago and asking for huge amounts of paperwork for that tax year, two years before it and for every year since. Annexed were 2 or 3 pages about the penalties for failure to supply, failure to fully disclose etc etc.
My Point ?
The Hacienda launched a tax investigation over a very small amount of money they thought she hadn't declared and despite her having fully declared for years and even self declaring the minor error.
The amount they mentioned in the letter without explaining where they got the figure from was so precise I thought it must have come from the UK under the exchange of info rules.
Turned out I was right.
Best
Loco
Last edited by Loco; Dec 28th 2021 at 10:48 pm.
Dec 29th 2021, 5:35 am
#8
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Posts: 660
Re: Transferring smallish amount of money (gift) from UK
Assessing la Hacienda is hard to do. My ex worked as a tax adviser for Brits and Swedes. She was constantly in touch with the Hacienda. She said that they were always fair and reasonable. I was investigated last year for 2017. I received the black letter and there was a breakdown of my money circa the UK. In the end they simply accepted that I was not a resident during the period and the case was closed. Whilst it is true you should abide by the rules it is important to realise that losing sleep over not doting an i is probably a case of over-worry. When I posted my predicament one person was suggesting I could face a criminal charge!!!. So my advice is put things in context. If the OP is in doubt they can easily ask a gestor or lawyer for advice which is normally free for such a simple question.
