This is the limit on undeclared transfers
In Spain, by law, any transfer that involves a monetary donation is subject to the Inheritance and Donation Tax (ISD). This tax must be paid to the Tax Agency.
It is the banking entities that are in charge of monitoring and analyzing financial transactions to detect suspicious operations and communicate them to the Agency. Obviously, not all transfers are communicated, since there is a limit after which it is mandatory to do so.
The limit is 10,000 eurosalthough transfers exceeding 6,000 euros are also subject to analysis by the Tax Agency under Law 10/2010 on the prevention of money laundering and the financing of terrorism.
What happens if we do not declare a transfer that exceeds this limit? The Tax Agency establishes fines that range between a minimum of 600 euros and up to 50% of the value of the undeclared donation.
In short, any transfer that exceeds 6,000 euros It may be subject to analysis by the Treasury and transfers of 10,000 euros must be declared compulsorily.
Given that transfers between family members are a very common practice, if an operation is considered a donation, it is necessary to comply with the obligations of the Inheritance and Donation Tax.
In any case, although it is a state tax, its management and collection is the responsibility of the autonomous communitiesso not all of them pay the same.
For example, in Madrid there is a 99% bonus as long as it is signed before a notary, while in Andalusia they apply a reduction of up to one million euros and in Castilla-La Mancha a bonus of between 100% and 80% depending on the amount received.
Added to this are communities such as the Balearic Islands where the taxed directly for donations between parents and children.
The issue changes with other family members and, of course, people outside the family, for whom bonuses do not apply. In that case, taxes would have to be paid at rates that range from 7.65% to 34%.
