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V4110-16 ·26 September 2016 ·consulta-vinculante Medium impact
Tax

Investing cash withdrawn from a bank account into a property has no inherent impact on Personal Income Tax

A query was raised regarding whether withdrawing cash from a bank account to purchase a property has tax implications for Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that the transaction itself does not affect the tax, but warns of the necessity to prove the origin of the funds.

In 6 key points

How it affects those involved

Neutral for the transaction itself, but carries significant compliance requirements regarding the proof of funds to avoid tax scrutiny.

Lifecycle

2016-09-26PublishedPublished 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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