The AADE issued a circular clarifying the tax treatment of property acquisitions by one spouse where the consideration is provided by the other spouse, and the transaction is characterized as an informal gift (donation inter vivos). Under Article 14 of Law 4172/2013 (KFE), donations between spouses are exempt from gift tax up to €150,000 per donor per calendar year. However, the circular emphasizes that the exemption applies only if the gift is declared through the formal donation declaration (Form D212) within the statutory deadline. Failure to declare results in the transaction being treated as a concealed donation, subject to the progressive gift tax rates (10%-40%) plus penalties. The circular also addresses the interplay with the property transfer tax (FMA), confirming that the 3% FMA rate applies to the declared value, but the spousal exemption reduces the taxable base to zero for amounts within the €150,000 threshold.
Key Takeaways
- Declaration is Mandatory: The €150,000 exemption is not automatic; a timely D212 declaration must be filed electronically via TAXISnet, attaching the notarial deed and proof of fund transfer between spouses.
- Source of Funds Scrutiny: AADE will verify that the donating spouse’s funds originate from declared income or previously taxed assets; unexplained sources trigger a presumption of tax evasion and a full audit of both spouses.
- Impact on Property Tax Basis: The acquisition value for future ENFIA and capital gains purposes is the declared donation value, not the market value, potentially reducing future tax liabilities if the declaration is made correctly.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement