Christmas is coming and with it gifts to children, adults, friends and family. A time where the most original gifts abound, but also great doubts about whether or not to get them right. That is why many Spaniards they choose to give money… before which the Treasury is keeping an eye out.
In recent years, the Tax Agency has been pursuing with great force the money laundering to try to reduce the high amount that in Spain is handled in black money. A step from which the money given is not exempt, because in many times that ‘gift’ is really an attempt to spend cash without the Treasury finding out.
So that no minimum quantity is established from which a donation must be declared. Contrary to the minimum of 3,000 euros, in which the bank must inform if there is a higher cash withdrawal, therefore any amount must pass through the arms of the Tax Agency.
There is no limit from which to declare a donation
This means that by understanding ‘donation’ as “an act of liberality by which a person freely disposes of one thing in favor of another, who accepts it”, according to the Civil Code, thus all money given must be declared. From the grandmother’s tip even those 50 euros of the uncle ‘so that you buy something’ is in legal eyes seen as a transfer of money that must go through the Inheritance tax and donations.
The Treasury has up to four years to claim those 20 euros as a gift
A claim in which the amount depends on each autonomous community and where there is a month from receipt to render accounts with the Treasury. Likewise, the treasury has up to four years to claim payment.
In practice, as it is a very popular task and since the amount to be declared for that ‘gift’ is minimal, the Treasury does not resort to it. Of course, it is convenient to know that it is considered a donation and as such it should be taken into account in the event of a possible suspicious movement.