The statement of income It is an annual procedure presented between the months of April and June to regularize the tax situation of each resident in Spain with the Tax Agency. However, not all people have to do it, since it depends on the income that has been obtained throughout the year.
For this reason, special care must be taken in the way of presenting this document in which the income, expenses and investments are recorded. The 2021-2022 income tax return campaign began on April 6 and will end on June 30. This procedure can be done by In person, by phone or through the Renta Web website and a mobile application.
If you make a living donation to your children, parents or siblings, or if you are the person who is going to receive it from your parents or other relatives, it is almost certain that it will cost you money. And it is that the donation has fiscal consequences for donors, implying a cost that must be borne. For example, in relation to income tax, it is the donor who must pay the capital gain in personal income tax.
How are income from donations taxed in personal income tax?
Therefore, the donor must pay the tax that is applied to the differences in value between the acquisition price and the price stated in the deed of donation. The specific percentage to apply depends on the amount of the gain. For this reason, it is convenient to apply the savings tables that are foreseen to know the specific percentage to apply, since it depends on the amount of the profit. The percentages to be applied at present are as follows.
– Up to 6,000.00 euros – Applicable rate: 19%.
– Between 6,000.01 euros and 50,000.00 euros – Applicable rate: 21%.
– Between 50,001.00 euros and 200,000.00 euros – Applicable rate: 23%.
– More than 200,000.01 euros – Applicable rate: 26%.
It should be remembered that personal income tax is a progressive tax, a fact that will cause apply the tax rate (percentage) to each installment of the taxable base of the savings (profit) of the previous section.
How to pay less taxes in the Income Tax declaration (IRPF)?
The tax to be paid for the donation of a part of a person’s assets can be quite talla fact that most people are not aware of until they make their Income Tax return in the following year.
This could be avoided by planning the donation, because thanks to the existence of exemptions in certain cases, you could exempt yourself from paying personal income tax if a series of requirements are met. Thus, the person in question saves a lot of money on taxes.
The most frequent way is appeal for the exemption of transmissions of the habitual residence by people over 65 years of ageprovided that the taxpayer is over 65 years of age when the transfer is made and the transferred home is the habitual residence.
However, there are more exemptions provided for in the Personal Income Tax Law (LIRPF). For this reason, it is advisable to seek advice and plan the donation to save money on taxes or even not pay for the donation.