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A wedding is a special moment in our lives; an event in which family and friends – out of habit – usually give us gifts, in money or in “kind”. In such a situation, a recurring question from the celebrants is If there is an obligation to declare gifts before the AEAT (State Tax Administration Agency).

Although it may seem surprising, the answer is simple: with the law in hand, Wedding gifts must always be declared to the Treasury. Like any other donation, they must be declared in the Inheritance and Donation Tax. A declaration for this tax would have to be submitted for each of the gifts, depending on the taxation of the place in which we reside.

In this way, there are autonomies in which it is more profitable to get married or baptize a child, such as in Madrid, Andalusia, Murcia and La Rioja. In these communities, a 99% bonus is applied to the tax rate on donations between parents and children, that is, only 1% of the tax rate would have to be paid to the Treasury.

We must not forget that the Treasury has banking entities as scouts and necessary collaborators in the event of any strange movement that is made between accounts. The legal obligation arises whenever a movement of more than three thousand euros (3,000 euros), but the situation could arise of alerting the treasury for certain minor income that is given without the appropriate justification or declaration. That is why, in a situation like this, the question may arise as to whether any gift of money must be declared to the Treasury.

A custom that has been observed lately is the consignment of an account number, directly in the invitation, so that the guest who deems it can deliver the “gift” via bank transfer.

• They have made us a transfer for the wedding, is it declared?

  Yes, like all gifts. Furthermore, it must be taken into account that, if it is not declared and the Treasury detects a transfer or set of transfers for a significant sum, it may open an investigation. For example, this may be the case when an account is opened for friends and family to make contributions.

  Let us not forget that all increases in our assets must have a justification. Although the Tax Agency could prove that these amounts are a wedding gift, which is taxed in the inheritance and gift tax, it will probably classify it as an unjustified capital gain, and force you to declare it in the personal income tax.

• And if the wedding gifts are in cash, do they have to be declared to the Treasury?

  They must also be declared. It must be taken into account that having more cash can influence other payments that we normally make using, for example, a debit or credit card. To all this, we must add the typical “envelopes”. Although the custom of opening an account to deposit the gift is quite widespread, there are those who still prefer the typical option of the envelope in hand on the wedding day. While it is true that the envelope carries a certain “opacity” in regards to the amount received, as well as the delivery made –referring to the donor-, the truth is that it would always be better to opt for the bank transfer, because in the unlikely event In the event of an inspection, we can justify, thanks to the concept of the transfer, that it is a wedding gift, while it is not advisable to handle too much cash without being able to prove its origin.

• And if the wedding gifts are in kind, are they declared?

  Likewise, they must be declared. However, in this case the value of the gift is very important. Receiving a mixer, for example, is not the same as receiving a car or a home. Likewise, it is important who makes the donation. It is common for donations of higher value goods to be made by family members. In that case, the taxes to pay are lower. Even in certain communities, if it is a donation from parents to children, you may not have to pay anything, although it is still necessary to file the inheritance and gift tax return.

It must be taken into account that, for the application of some of the bonuses in the Inheritance and Donation Tax provided by the autonomous communities, it may be necessary to document the donation in a public deed. That is, before a notary.

*Manuel Martínez Mercado is a lawyer.

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