Last year, a new law came into force in Andalusia, according to which the gift tax between family members and spouses is bonified by 95-100%, depending on the value of the donated property. This, of course, caused a stir in the signing of donations. But I would like to warn those who have already signed the papers or are still in the process – do not forget about other taxes that will arise as a result of receiving a gift.
From the point of view of the tax authorities, donation of property is not only taxed on the recipient, but can also entail capital gains tax for the donor, that is, profits for which the taxpayer must promptly report in the IRPF declaration.
The State Treasury (AEAT) can also check how “fair” the valuation of the donated property is, which means that already this year many heirs and donors, not knowing the pitfalls, can receive “letters of happiness” …
So, in Andalusia, there are the following bonification rates, that is, a reduction in tax deductions for acts of gift / inheritance
⠀
up to 123.000 – 100%
⠀
from 123.000.01 to 152.000 – 99%
⠀
from 152,000.01 to 182,000 – 98%
⠀
from 182,000.01 to 212,000 – 97%
⠀
from 212,000.01 to 242,000 – 96%
⠀
more than 242.000 – 95%
⠀
CONNECTION OF OTHER TAXES
When the transfer of property is formalized, in addition to the Inheritance and Gift Tax, capital gains tax may also be applied, that is, if the father gave the child an apartment worth 200,000 euros, which he once bought for 100,000 euros, then in as a result of the transfer, the concept of the donor’s profit arises. And in numbers it is 21-25% (payment in IRPF). The value will be slightly lower for objects owned before December 31, 1994.
It is possible to avoid paying this tax if certain details are observed, for example, if the donor is over 65 years old and the recipient is going to use this property for his permanent residence.
Another tax that follows the “trailer” is the municipal PLUSVALÍA (Impuesto Incremento Valor Terrenos Naturaleza Urbana). It is paid to the Municipality and is calculated as the increase in value of the land during the tenure.
But it is also possible to exempt from this tax, since the Constitutional Court of the Tribunal Constitucional (STC de 11 de mayo de 2017, 4864/2016) as well as the Supreme Court ruled that if the value of the property has not changed, then tax the payer with this tax contradicts the constitutional foundations of the Kingdom.
Therefore, in each individual case, it is important to get qualified legal support in order to avoid surprises and to know what the consequences will be after you sign the papers.
Otherwise, the gift can cost you dear …