Gift Taxation in Spain, Portugal & France

Gift taxation across Europe often creates confusion—especially in cross-border situations. In this episode, we unpack how Spain, Portugal, and France approach gift taxation, who is legally liable, and why donors remain highly relevant even when they are not the taxpayer.

🔎 What You’ll Learn in This Episode:

1️⃣ Who Pays Gift Tax in Spain, Portugal & France

As a general rule, gift tax is imposed on the recipient, not the donor:

• Spain – Recipient taxation under Ley 29/1987, Article 3

• Portugal – Recipient taxation under Código do Imposto do Selo, Articles 1 and 2

• France – Recipient taxation under Code général des impôts, Articles 757 and 777

In all three jurisdictions, the donee is the person legally assessed for the tax.

2️⃣ Why the Donor Still Matters

Although donors are generally not subject to gift tax, this does not make them legally or practically irrelevant—especially in international cases.

Donors may still face:

• Documentary obligations

• Notarial formalities

• Evidentiary requirements (proof of funds, intent, valuation, timing)

Failures at the donor level often result in downstream tax exposure, penalties, or reassessments for the recipient.

3️⃣ The Cross-Border Risk

In cross-border gifts, authorities frequently examine:

• The source of funds

• The jurisdictional connection of the donor

• Whether the gift was properly documented and substantiated

A weak paper trail or inconsistent documentation can undermine exemptions, reliefs, or tax positions claimed by the recipient.

4️⃣ Key Takeaway

While gift tax may be legally imposed on the recipient, effective compliance depends on both sides of the transaction.

In cross-border planning, donors and recipients must coordinate documentation, timing, and formalities to avoid unintended tax exposure.

This episode provides a practical framework for understanding gift taxation in three major European jurisdictions—and why cross-border gifts require more than just knowing who pays the tax.