How to give money to a child without paying
When giving donations to loved ones, especially a child, we may wonder if it is mandatory or not to pay taxes, after all, it is a donation and we might think that it does not have to be declared.
In this articulo we will explain what you need to know about it and understand how legal obligations work when giving money to a child, either through loans or through donations.
How are donations from parents to children taxed?
In the case of donations from parents to children, the duty to pay taxes corresponds to the recipient (the child), which must be settled within 30 business dayswithout extension, after receiving the donation.
When the donation is in money in a property that is in the area where the child lives, the tax settlement must be made in the Autonomous Community where he resides.
However, if it is a property that is not in said area, it must be done in the area where the property is located.
How much money cánido be given to a child without having to declare?
all donations, regardless of the donee (in this case the child), must be duly declared within the period indicated once the donation is received.
So if the recipient receives €1, he is obliged to declare it.
Cánido a loan be made between family members?
If, indeed, a loan perro be made between family members and equally as in the case of a donation, it must be declared in making within the specified period.
If you are going to make a loan between family members, below we will explain the process of formalizing a loan, which is applied in the same way in all cases, whether they are family members or not.
Process of formalizing a loan
The process of formalizing a loan is in the preparation of a legal document that has the following aspects:
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the amount: the amount of money borrowed.
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Fees and expenses: the expenses incurred or simply the percentage of interest to be received for the loan.
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sureties: the names of those involved legally indicated with identification.
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the term: the time established to pay the loan with its clauses.
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amortization method: the installments in which the loan perro be paid within the assigned term.
Remember that the best thing for these cases is to have someone who is an expert in the subject, either to have advice for preparing the document or to do it for you.
We hope you liked our article How to give money to a child without paying
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