When you receive a monetary gift you will have to declare it to the tax authorities and, consequently, you may have to pay Stamp Tax. If the donation is in cash and exceeds 500 euros, you will have to pay 10 percent (%) of the value of the donation in tax.
You will only be free from Stamp Tax if you receive the donation from your ascendants or descendants, that is, spouse, parents, grandparents, children and grandchildren. But even if you are exempt from this tax you will still have to declare the donation to the Finance Department.
There is also an exception in the case of Stamp Tax exemption, which is the case of property donations. In these cases, even if the donation was made to you by one of these family members, you will still be obliged to pay tax at a rate of 0.8% on the taxable asset value of the property. And if the donation is made by someone other than an ascendant, descendant or spouse, both rates of 0.8% and 10% apply.
Do you need to declare a gift on your tax return?
According to idealista you do not have to declare the assets you received through a donation during your lifetime, with the IRS. However, if you obtain income from these assets, you will have to declare them.
For example: you inherited a property and are renting it. In this case, you will have to declare the income obtained from that property.
Where does one find the taxable asset value of a property recorded? Is there a limit for annual gifting of property between family members - charged at 0.8%. Do all parties of the chain( family members) being gifted need to be resident. ?
By tina atkinson from Algarve on 18 Feb 2024, 07:39