Donations of money and homes: these are the differences and the taxes you have to pay

The strength that donations are gaining against inheritances for tax reasons means that more attention is paid to this type of transmission to our loved ones in life. However, there are differences depending on what is donated.

The two main types of donations are those of money or those of a home. Each of these, however, is taxed in a different way.

money donations

When a family member donates money (let’s take the example of a father to a son) a certain amount of money, the recipient of this donation, a tribute from which no donation escapes.

This tax must be paid within 30 calendar days from the donation and is not uniform, since the autonomous communities are responsible for applying it. Some like Castilla y León, Madrid, Andalucía, Galicia or Murcia have bonuses of up to 99%, but in other regions you do have to pay a certain amount of the donation. In any case, it will depend on the coefficient of each community.

housing donations

The picture changes when the donation is of a home, since other taxes to be taken into account are added to the Inheritance Tax.

The first of these is the , which is called the Tax on the Increase in Value of Urban Land (IIVTNU) and is levied on the change in value of the land or buildings built on it from the moment it was acquired until the day it was sold.

This tax is the responsibility of the municipalities and must be paid by the recipient of the donation within 30 days. The amount, therefore, varies from one municipality to another.

In addition, you must also pay the Personal Income Tax (IRPF) in the Income Statement. Specifically, as a capital gain, so it will be necessary to calculate the difference between the transfer value and the acquisition value of the property, an operation in which the calculations are made following some .

A series of percentages will be applied to this amount in accordance with the regulations of the Tax Agency: 19% if the amount is between 0 and 6,000 euros, 21% if it is between 6,001 and 50,000 euros and 23% from of the 50,001 euros.