Money given at Christmas: from what amount must be declared

Christmas is coming and with it gifts to children, adults, friends and family. A time where the most original gifts abound, but also great doubts about whether or not to get them right. For this reason, many Spaniards choose to give money… to which the Treasury is keeping a watchful eye.

In recent years, the Tax Agency has been aggressively persecuting money laundering to try to reduce the high amount that is handled in black money in Spain. A step from which the money given is not exempt, because often that ‘gift’ is really an attempt to spend cash without the Treasury knowing about it.

For this reason, a minimum amount is not established from which a donation must be declared. Contrary to the minimum of 3,000 euros, in which if there is a higher cash withdrawal, therefore any amount must pass through the arms of the Tax Agency.

There is no limit from which to declare a donation

This means that when ‘donation’ is understood as “an act of generosity by which a person freely disposes of one thing in favor of another, who accepts it”, therefore, all money given must be declared. From the grandmother’s tip to those 50 euros from the uncle ‘for you to buy something’, it is legally seen as a transfer of money that must go through the Inheritance and Gift Tax.

The Treasury has up to four years to claim those 20 euros as a gift

A claim in which the amount depends on each autonomous community and where one month is available from its receipt to render accounts with the Treasury. Likewise, the treasury has up to four years to claim its payment.

In practice, as it is a very popular task and since the amount to be declared for this ‘gift’ is minimal, the Treasury does not resort to it. Of course, it should be known that it is considered a donation and as such must be taken into account in the event of a possible suspicious movement.

Update: The headline has been updated to omit the erroneous reference to an IRS notice. The content of the news has not changed, since it correctly explains the current legality.