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V0610-24 9 April 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · donación

Cash donations do not generate capital gains or losses for the donor under Personal Income Tax (IRPF)

A taxpayer inquired about the tax implications of transferring money to their nephew for a property purchase. The Directorate General for Taxes (DGT) ruled that the donation of cash does not result in a capital gain or loss for the donor.

The question raised

Taxation of the transaction for the donor.

The DGT's ruling

The donation of any asset or right generates a capital gain or loss due to the variation in the value of the assets. However, in the case of the donation of money, no capital gain or loss shall be computed for the donor. In the Inheritance and Gift Tax, the taxpayer is the donee and not the donor.

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