The importance of animus donandi in bank transfers

The classification of fund movements between bank accounts is a constant point of attention for the Tax Administration. Recently, the Directorate General of Taxes (DGT) has clarified the necessary elements for a money transfer to be considered, for tax purposes, a taxable gift.

What the DGT has ruled

The central question was to determine whether a transfer of funds must obligatorily be taxed as a gift. The DGT has ruled that for the taxable event of Inheritance and Gift Tax (ISD) to occur, the presence of animus donandi is essential.

This concept refers to the will or intention to make a gratuity, that is, to transfer assets without receiving anything in return. The resolution indicates that the absence of this intention prevents the application of the tax. In transfer operations between accounts, the managing office has the responsibility to determine, based on the circumstances of the case and the principle of classification, whether the operation meets the requirements to be considered a gift.

What it means for you

This criterion has direct relevance for individuals who make fund movements, especially when it comes to transfers between accounts of which they are holders or in which they act as authorized signatories. Not every movement of money between accounts implies a gratuitous transfer of assets that must be declared.

If a movement of funds lacks the intention to benefit a third party free of charge, it should not be subject to ISD. However, the Administration will analyze the context of the operation to verify whether there is truly an intention to donate or if it is a management of funds, either personal or for third parties, without a gratuitous character.

What you should do

When making significant movements of funds, it is fundamental to keep the following in mind:

• Documentation: Keep a record of the nature of the operations carried out between accounts.
• Context: Understand that the Administration will evaluate the specific circumstances of each transfer to determine its tax classification.
• Technical assessment: Since the classification depends on the interpretation of the parties' will, it is necessary to assess each situation individually to avoid erroneous interpretations by the managing office.