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V0364-24 ·12 March 2024 ·consulta-vinculante Medium impact
Tax

Cash donations do not generate capital gains or losses for donors under Personal Income Tax

A query was made regarding the taxation of a €14,000 donation made via bank transfer. The Directorate General for Taxes (DGT) clarifies that there is no impact on the donors' Personal Income Tax (IRPF) and that the transaction is subject to Inheritance and Gift Tax, depending on the donee's residence.

In 6 key points

How it affects those involved

The ruling confirms that cash gifts are not subject to Personal Income Tax for the donor, shifting the tax liability entirely to the recipient under Inheritance and Gift Tax regulations.

Lifecycle

2024-03-12PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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