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V2303-23 1 August 2023 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · donación

Non-residents liable for Spanish tax on cash gifts located in Spain

An Australian resident has enquired about the taxation of a cash gift intended by her mother, a resident in Spain, to be made to her. The DGT clarifies that, as cash is considered movable property located in Spain, the donee is subject to tax under the real obligation rule.

The question raised

Taxation of the transaction and applicable regulations.

The DGT's ruling

The donation of money to a non-resident is subject to Inheritance and Gift Tax if the money is located in Spain. The taxpayer is entitled to apply the regulations of the Autonomous Community where the money has been located for the majority of the days during the last five years. As there is no residence in Spain, the competent administration for management is the State Tax Administration Agency (National Tax Management Office).

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