How much is the tax on giving money to a child in Catalonia?

Question

José Manuel Alburquerque · Accepted Answer

If a public deed is signed, between 5 % and 9 % of what is given. On 20.000 euros the tax is about 1.000, on 100.000 about 5.000 and on 300.000 about 17.000. It is paid by the child who receives the money, not by the father or mother. Without a deed the general scale applies, from 7 % to 32 %, which works out considerably more expensive. If the money is for the first home of a child aged up to 36, 95 % is deducted, up to a maximum of 60.000 euros. How it is calculated With a public deed, a gift between parents and children is taxed as follows: 5 % on the first 200.000 euros. 7 % on anything over 200.000 and up to 600.000. 9 % on anything over 600.000. If money is given, the deed must be signed within the month following the handover. Without a deed, or if it is signed late, the tax on 100.000 euros is about 9.000 instead of 5.000. The same applies to grandchildren, the spouse, the stable partner (in a “pareja estable”, the Catalan stable partnership) and parents. The tax breaks First principal residence of a child or grandchild aged up to 36, with an income of up to 36.000 euros. 95 % is deducted, up to a maximum of 60.000 euros. The maximum applies to all the gifts together, even if the father and mother give the money separately. The deed must state that the money is for that purpose and the home must be bought within six months of the gift, or of the first gift if there are several. Setting up or buying a company or a business. 95 % is deducted, up to a maximum of 200.000 euros. The child has six months to set it up or buy it. Both have other requirements that should be checked before the money is given. What you should know The time limit for filing the return is one month from the gift. A father or mother who gives money pays no income tax on it. If they give a flat or shares that have risen in value, they do pay tax on that gain. Gifts to the same child within a three-year period are added together to work out the rate. If the father or mother dies within the following four years, the gift can make the inheritance more expensive. In addition, what is given in the ten years before death counts towards calculating the children's forced share (“legítima”). If the money is for a first home or a business, it counts even if more years have passed and it is deducted from the forced share of the child who received it, unless the father or mother says otherwise.