Receiving a gift from parents abroad: tax and bank checks

Key rules

• Who pays: You, as the person receiving the gift, pay Spanish gift tax if you live in Spain, whatever your parents' residence.
• Deadline: File within 30 working days of the date of the gift.
• Where to file: File with your region of residence, which sets the rates and reductions.
• Bank proof: Be ready to show a gift letter or deed and proof of where your parent's money came from.
• Records: Keep all gift papers for at least 4 years.

Do you pay Spanish tax on a gift from abroad?

Yes. If you live in Spain, you pay Spanish gift tax (the "impuesto sobre donaciones") on gifts you receive from anywhere in the world. It does not matter where your parents live or where the money comes from. You, the person receiving the gift, are the one who files and pays. Your parents do not.

If your parents already paid tax on the gift in their own country, you may be able to claim a credit for it in Spain. Ask the tax office or an adviser how to show that payment.

Where and when to file

You file with the region where you live, not with a national office. Each region sets its own rates and reductions, so the amount you pay depends on where you live. Some regions reduce the tax a lot for gifts between parents and children. Check your region's tax website for its rules.

You must file within 30 working days of the date of the gift. For a bank transfer, the date of the gift is the day the money arrives. Most regions use their own form. Where the national tax agency handles it, the form is Modelo 651. The timeline below shows the order of steps.

What your bank will ask for

Banks in Spain must check large transfers from abroad for money laundering. Expect questions when a big family transfer arrives. What they ask for varies by bank and by amount. Usually they want:

• a signed gift letter or a gift deed, stating your family link and the amount
• your parent's ID or passport, and proof you are related
• your parent's bank statements showing where the money came from
• proof of the original source, such as a salary, the sale of a property or an inheritance
• proof that your parent has paid any tax due on that money
• your filed gift tax form, once you have filed it

The list of documents below has the full set, including translations. Documents not in Spanish usually need a sworn translation, and some need an apostille (an official stamp that makes a foreign document valid in Spain).

How to avoid delays

• Get the gift letter or deed signed before the money is sent.
• Ask your parent to collect their proof of funds first. Missing proof of source is the usual reason a bank holds a transfer.
• Tell your bank in advance that a transfer is coming and ask what it needs.
• Send the money to your own account in your own name.
• If you are buying a home, the notary and your mortgage lender may ask for the same papers. Keep copies.

Keep your papers

Keep the gift letter or deed, transfer receipts, statements for both sides, your parent's proof of funds, translations and your filed form with proof of payment. Keep them for at least 4 years, and longer if you can. The tax office can ask for them during that time.

Timeline and deadlines

• Gather the gift letter or deed and your parent's proof of funds: before the money is transferred

• Receive the transfer, which sets the date of the gift: on the day the gift is made

• Give your bank the filed gift tax form if it asks for it: once the form is filed

Documents you need

• Gift letter or gift deed, signed, stating your family relationship and the amount.

• Your parent's ID or passport, with proof of the family link.

• Your parent's bank statements showing where the funds came from, and bank transfer receipts for both sides.

• Proof of the underlying source of the money, such as a salary, a property sale deed or an inheritance.

• Proof that your parent has filed any tax due on the money, and any foreign tax filing.

• Your filed gift tax form (Modelo 651 or your region's form) with proof of payment, once filed.

• Sworn translation of any of these documents that are not in Spanish, with an apostille where needed.

Frequently asked questions

Do I pay Spanish tax if my parents live abroad?

Yes, if you live in Spain you pay Spanish gift tax on a gift from parents abroad, whatever their country of residence. Any tax your parents or you paid abroad on the same gift may give you a credit in Spain. Ask a tax adviser how to claim it.

Which office do I file the gift tax with?

You normally file with the tax office of the region where you live, for money gifts. The form is Modelo 651 where the state tax agency (AEAT) handles the tax, or your region's own form where the region manages it. For a gifted property, the region where the property sits is the one that counts.

What will my bank ask for when a large transfer arrives from abroad?

Your bank will usually ask for a gift letter or deed stating the relationship and amount, plus proof of where the money came from. It may also want proof that your parents filed any tax due, and your own gift tax filing once you have made it. Requests vary by bank and amount.