{"id":13425,"date":"2023-08-08T18:49:08","date_gmt":"2023-08-08T16:49:08","guid":{"rendered":"https:\/\/www.white-baos.com\/?p=13425"},"modified":"2023-08-08T18:49:55","modified_gmt":"2023-08-08T16:49:55","slug":"gift-tax-reduction-of-100-000e-valencian-region","status":"publish","type":"post","link":"https:\/\/www.white-baos.com\/en\/gift-tax-reduction-of-100-000e-valencian-region\/","title":{"rendered":"How does the Gift Tax reduction of 100.000\u20ac work in the Valencian Region?. We analyse its main requirements. Gift tax. Donation tax."},"content":{"rendered":"\n

<\/p>\n\n\n\n

As explained in previous articles, there are different reductions in the Gift Tax in the Valencian Community<\/a>. One of the most well-known is the Gift Tax reduction of 100.000\u20ac in gifts made between certain family members (for instance, from parents to children). In this week’s article we analyse the requirements that must be met in order to make use of this reduction.<\/p>\n\n\n\n

<\/p>\n\n\n\n

Gift Tax reduction of 100.000\u20ac due to kinship. Valencian Region.<\/u><\/strong><\/h2>\n\n\n\n

Let’s start with the basics. When a gift is made, the individual obliged to pay Gift Tax is always the donee. That is, the person receiving the gift. Art 10 Bis. 1\u00ba of Law 13\/1997<\/a> states that when a gift is made from parents to children (or from the children to his\/her parents) the first 100.000\u20ac are exempt and do not pay Gift Tax. This reduction also applies among grandparents and grandchildren, provided that the parents between them have passed away.<\/p>\n\n\n\n

<\/p>\n\n\n\n

What requirements must be met in order to be able to make use of this reduction?.<\/u><\/strong><\/h2>\n\n\n\n

A common misconception is to think that if the amount of the gift is less than 100.000\u20ac, automatically no Gift Tax is payable. Nothing could be further from the truth. The use of this reduction is conditioned to the fulfilment of several requirements:<\/p>\n\n\n\n

– It is essential that the gift is formalised in a public deed signed before a Notary Public.<\/p>\n\n\n\n

– If the donor or the recipient are foreigners<\/a>, they must have a NIE (Foreigners’ Identification Number). And their NIE must be registered with the Spanish Tax Agency.<\/p>\n\n\n\n

– It is necessary to provide the birth certificate, to prove the kindship relationship between donor and recipient. If this document is issued outside of Spain, it may need to be apostilled and translated.<\/p>\n\n\n\n

– The pre-existing assets of the recipient must be under 600.000\u20ac. Otherwise, this reduction cannot be applied.<\/p>\n\n\n\n

<\/p>\n\n\n\n

Cases in which the reduction does NOT apply.<\/u><\/strong><\/h2>\n\n\n\n

In addition to the above-mentioned requirements, there are three specific cases in which the gift tax reduction of 100.000\u20ac<\/a> cannot be used:<\/p>\n\n\n\n

1.- When the donor applied this tax reduction, in the acquisition of assets of the same value in the previous 10 years.<\/p>\n\n\n\n

For instance: Pedro receives a donation of 100.000\u20ac from his father Miguel. And Pedro uses the reduction for kinship, so that he does not pay Gift Tax. Later, Pedro wants to gift later 100.000\u20ac to his daughter Mar\u00eda. She will only qualify for the 100.000\u20ac reduction, if at least 10 years have elapsed from the previous donation.<\/p>\n\n\n\n

2.- When the recipient, in the previous 10 years, made a gift to a third party, who used this reduction when declaring the Gift Tax.<\/p>\n\n\n\n

In other words, Pedro wants to gift 100.000\u20ac to his daughter Ana. However, Ana will not be able to take advantage of this reduction if, in the previous 10 years, Ana had gifted 100.000\u20ac to someone else, and this person made use of the kinship reduction.<\/p>\n\n\n\n

3.- When the donor received from the recipients, by inheritance and by their pure and simple renunciation, assets of the same value in the 10 years, making use of the reduction of 100.000\u20ac.<\/p>\n\n\n\n

Let\u2019s imagine there is an inheritance in which two heiresses (daughters) renounce<\/a> to what corresponds to them, and their rights go to their mother. Their mother, when inheriting their share, applies the reduction of 100.000\u20ac. If the mother, after that, wishes to make a gift to her daughters, they will not be able to apply the kinship unless 10 years have elapsed.<\/p>\n\n\n\n

<\/p>\n\n\n\n

Conclusions<\/u><\/strong>.<\/h2>\n\n\n\n

The gift tax reduction of 100.000\u20ac is one of the most frequently used tax benefits when calculating the Gift or Donation Tax<\/a>. However, there are many requirements that must be fulfilled to avoid surprises, in the form of a notification from the Valencian Tax Agency. At White-Baos Lawyers we are experts on Inheritance Tax and Gift Tax. Do not hesitate to contact us<\/a>, we will study your case, and offer you expert legal advice.<\/p>\n\n\n\n

The information provided in this article is not intended to be legal advice, but merely conveys information related to legal issues.<\/p>\n\n\n\n

Carlos Baos (Lawyer)<\/p>\n\n\n\n

White & Baos.<\/p>\n\n\n\n

Tel: +34 966 426 185<\/p>\n\n\n\n

E-mail: info@white-baos.com<\/p>\n\n\n\n

White & Baos 2023 – All Rights Reserved.<\/p>\n\n\n\n

<\/p>\n\n\n\n

<\/p>\n\n\n\n

You may be interested in the following services and articles:<\/h1>\n\n\n\n

Inheritance or gift: which is more tax beneficial?. What are the advantages and disadvantages of each option?. Legal advice<\/a><\/h2>\n\n\n\n

The cheapest way to transfer properties in Spain between spouses.<\/a><\/h2>\n\n\n\n

Possibility of cancelling or revoking a donation or gift in Spain. Reasons to do it. Legal regulation. Acts of the beneficiary.<\/a><\/h2>\n","protected":false},"excerpt":{"rendered":"

Gift tax reduction of 100.000\u20ac. Gift tax in the Valencian Region. Requirements. Expert legal advice. Spanish lawyers. […]<\/p>\n

Read More…<\/a><\/p>\n","protected":false},"author":2,"featured_media":13421,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[412,429],"tags":[1533],"class_list":["post-13425","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-conveyancing-buying-selling-letting-planning-permission-etc","category-transfers-gifts-of-legal-title-in-spain","tag-gift-tax"],"yoast_head":"\nGift tax reduction of 100.000\u20ac. Valencian Region.<\/title>\n<meta name=\"description\" content=\"Gift tax reduction of 100.000\u20ac. Gift tax in the Valencian Region. Requirements. Expert legal advice. 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