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V1930-19 22 July 2019 · 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

A query was made regarding the Personal Income Tax (IRPF) consequences of donating cash to another individual. The Directorate General for Taxes (DGT) ruled that the donor is not required to declare any capital gain or loss, and the recipient will not be subject to Personal Income Tax on the amount.

The question raised

Tax consequences of the aforementioned donation, exclusively for the purposes of Personal Income Tax.

The DGT's ruling

The donation of money shall not constitute a capital gain or loss for the donor, as losses from gratuitous inter vivos transfers are not taken into account pursuant to Article 33.5 of the Personal Income Tax Law (LIRPF). For the donee, the acquisition of money by way of donation is not subject to Personal Income Tax (IRPF) as it is subject to Inheritance and Gift Tax.

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