{"id":9778,"date":"2020-10-27T20:48:02","date_gmt":"2020-10-27T19:48:02","guid":{"rendered":"https:\/\/www.white-baos.com\/?p=9778"},"modified":"2020-10-27T20:48:06","modified_gmt":"2020-10-27T19:48:06","slug":"how-can-i-donate-some-of-my-spanish-assets-to-my-family-as-gifts-to-save-spanish-inheritance-tax","status":"publish","type":"post","link":"https:\/\/www.white-baos.com\/en\/how-can-i-donate-some-of-my-spanish-assets-to-my-family-as-gifts-to-save-spanish-inheritance-tax\/","title":{"rendered":"How can I donate some of my Spanish assets to my family as gifts to save Spanish Inheritance Tax?"},"content":{"rendered":"\n
Dear\u00a0Solicitor<\/em>. I would like to plan\u00a0the future Inheritance Tax on my estate here in Spain,\u00a0 to be inherited by my family and see how I can save gift and inheritance tax in Spain. Is it possible to make multiple donations to my children before my death, transferring them in life, part of my assets to save on Inheritance Tax?, and if possible,\u00a0 what are the requisites for that?.\u00a0M.\u00a0S. (Javea)<\/em><\/p>\n\n\n\n <\/p>\n\n\n\n Dear Reader,<\/p>\n\n\n\n Thank you for your inquiry.<\/p>\n\n\n\n First of all, you should know that in Spain the Inheritance Tax and Donations \/ Gift Tax are governed by the same laws and regulations.<\/p>\n\n\n\n Normally there is no substantial difference between\u00a0 your family inheriting or receiving a gift from you.\u00a0But it is\u00a0not always the case, and each case must be studied carefully, because sometimes some criteria such as the tax residence of the donor or donee, deceased and heirs, can determine the application of one tax law or another, making it advantageous to make a donation rather than an inheritance.<\/p>\n\n\n\n Secondly, it is true that the Inheritance and Gift tax is a gradual and progressive tax. In principle results in much less taxes, if the transfer of assets is made in several events and \/ or to multiple beneficiaries.<\/p>\n\n\n\n For example, roughly speaking, if you had two children and they were non tax residents in Spain, and at death you left them a Spanish estate with a value of 350,000 \u20ac, i.e. \u20ac 175,000 to each of them, each of them, as per the national inheritance tax scale, would need to pay approximately \u20ac 23,000 Spanish Inheritance Tax ( IHT).<\/p>\n\n\n\n But in principle, if you gift to them this same 175,000\u20ac, spread over 5 donations of 35,000\u20ac each, they will pay approximately 1,570\u20ac Gift Tax each time, a total of 7,850 \u20ac each child. A considerable saving, from 23,000\u20ac.<\/p>\n\n\n\n <\/p>\n\n\n\n But to minimise this tax effective tool, the Law 29\/1987 of the Inheritance and Gift Tax, in its article 30 provides that:<\/p>\n\n\n\n Donations and gifts with the same donor and donee made within three years, will be considered as a single transmission for the purposes of determining the tax and it would be accumulated. And the same applies to successions and inheritance\u2026for donations and gifts made less than four years before the death.<\/p>\n\n\n\n Therefore, if you want to donate or make some gifts to your relatives, they should not be done in periods less than 3 years between each gift, or less than 4 years before the time of death. Otherwise, not only will they be ineffective, but they may even be harmful from a tax point of view.<\/p>\n\n\n\n <\/p>\n\n\n\n If you need advice contact us.<\/a><\/p>\n\n\n\nAnswer.<\/h2>\n\n\n\n
Mimise the tax.<\/h2>\n\n\n\n