Requirements for Gift Tax Reclaim
These are the main requirements for assessing a Spanish Gift Tax Reclaim:
- The recipient must be a direct descendant of the donor i.e. spouse, grandparent, parent, child, or grandchildren to the deceased.
- The recipient or the donor must not have been Spanish resident on the date of the gift.
- On the date of the transaction the recipient must have been tax resident in an EU country or be a citizen of any country with a tax treaty permitting the refund (e.g. Switzerland).
- Claimants must have paid the Gift Tax in Spain on time.
- The claim must be made within 4 years of the date of payment of the Gift Tax.
- To justify taking the case the minimum amount paid must be €4,000, unless there are multiple recipients e.g. 3 family members that have paid €3,000 each.
Toward this aim you will need to locate the official Bank or Agencia Hacienda (Spanish Tax Office) date paid stamp on the tax form Modelo 650/651/652 to check if it is still in time to file a claim. If you don’t know what a Modelo 650 form looks like check out this post.
If your claim is deemed to be valid, we will require copies of the Inheritance Deeds (Escritura de Manifestación y Adjudicación de Herencia). Don’t worry if you can’t locate these, we can source them in Spain with the appropriate information.
Note: You need to keep original documents safe as they may be requested by the Spanish Authorities at short notice (although to date no original documents have been requested).