Skip to content
Back to index
V2855-21 17 November 2021 · 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 Personal Income Tax purposes for the donor

A taxpayer inquired about the Personal Income Tax (IRPF) implications of donating €25,000 to their daughter for a home purchase. The Directorate General for Taxes (DGT) clarified that this transaction has no tax effects for either the donor or the recipient.

The question raised

Tax implications regarding Personal Income Tax.

The DGT's ruling

The donation of money shall not constitute a capital gain or loss for the donor, as it constitutes a gratuitous inter vivos transfer. For the donee, the acquisition of money by way of donation is not subject to Personal Income Tax (IRPF), as it is taxed under the Inheritance and Gift Tax.

Book your free first meeting