Gift From Spanish parents To Buy A House

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teron3

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I'm in process to buy a house in Dublin. I already have a mortgage approval but it wont be enough to buy a property. My parents have decided to give me the rest of the money, approximately €100k.
They are from Spain and that money will be taxed there once they transfer it to my account.
Will that money be taxed here too?
 
You can get lifetime gifts of c. €300k from your parents before having to pay any Capital Acquisitions Tax (the official name for gift tax).

So if you have not received any gifts from them before, you will have no tax liability in Ireland.

I am surprised that it's being taxed in Spain. It might be worth chatting to a Spanish tax consultant to verify that.

Brendan
 
Thanks Brendan, it is complicated indeed as the tax is different depending of the region, some don't have it, sadly it is not the case where my parents live.

Would it make any difference transfer the money first to my Irish account or just transfer it straight from Spain once i find the house?
 
Just to bear in mind if you/your parents are transferring money that there is a daily limit on electronic transfers, at least in Ireland. So it may have to be done in chunks over a week if doing it manually.
It won't make any difference if you hold the money or your parents do until closer to the completion process.
If you put an offer on a house, the Estate Agent may want some proof of funds like a Bank Statement ( you can blank out the Acc details) or a letter from your parents or an assurance from your Solicitor that you have access to the funds.
If you engage a Solicitor sooner rather than later that is a good idea. It shows Estate Agents you mean business and you can ask the Solicitor any questions about what money is needed etc.
You don't need to pay the Solicitor till the very end.
 
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