Treasury Notice: Wedding gifts are also taxed and can cause problems.
Although these gifts are considered donations for tax purposes, they should not be included in the income tax return.
BarcelonaAny increase in assets must be justified. Under this principle, the Treasury also requires that wedding gifts be declared, ranging from bank transfers or cash to tangible gifts. The situation is the same for gifts given at baptisms or first communions, if they reach a high value.
And how is it declared? Through inheritance and gift tax, which is filed as a self-assessment with the relevant tax authorities. This means it should not be included in the income tax return. Banks are required to inform the Tax Agency when a client deposits more than €3,000 in cash into their account. Therefore, it is common to make the money transfer or Bizum payment and, immediately afterward, justify that the amount deposited is a wedding gift. If the money is received in cash, it also directly affects the family economy, as more cash payments or large amounts of money will likely be made without justification. This could trigger an inspection by the Tax Agency. Furthermore, it is also advisable to deposit any cash received in a bank to ensure traceability.
Regarding tangible gifts—from household appliances to tableware, among others—the Treasury again requires them to be declared. Unlike cash transfers and donations, gifts of objects are taxed at a lower rate in Catalonia. If these assets are not declared, the Treasury may consider them to be unjustified capital gains, and the Tax Agency then has four years to send a notice. However, it should be noted that it is unusual for the Treasury to refuse to declare wedding gifts, especially when they are of low value.
Each autonomous community is a world apart.
The taxes collected in inheritance and gift tax returns for gifts received go to the coffers of each autonomous community, with each territory having the right to charge the percentage it deems appropriate. Therefore, it is necessary to review the current regulations of each autonomous community to know how and what should be declared. For example, Madrid, Andalusia, Murcia, and La Rioja have some of the most lax laws, hovering around 1%. In the case of Catalonia, however, the minimum rate is 7%, and the deadline for filing this declaration is 30 business days from the receipt of these assets.