# Advice Bringing 10,000 to Spain from USA?



## GreenGreen88 (Apr 22, 2016)

My parents recently got an inheritance from my grandmother who passed away. They decided to use some of it to give each child 10,000$. My problem is I want to do everything by the book and I have no idea how. I have transferred small amounts of money to Spain before by PayPal or wire transfer but 10,000 seems way too big for any of that. 

Any advice?


----------



## Alcalaina (Aug 6, 2010)

Are you transferring from one bank account to another? If so I would recommend CurrencyFair. I am not sure if there's an upper limit, but I've transferred more than that in the past (sterling to euro) without a problem.

https://app.currencyfair.com/support/en


----------



## GreenGreen88 (Apr 22, 2016)

Alcalaina said:


> Are you transferring from one bank account to another? If so I would recommend CurrencyFair. I am not sure if there's an upper limit, but I've transferred more than that in the past (sterling to euro) without a problem.
> 
> https://app.currencyfair.com/support/en


Im not even really sure if its from one bank to another. My parents gave me a certified check so Im not really sure what to do. Thanks for the advice!


----------



## Alcalaina (Aug 6, 2010)

Best thing would be to pay it into your own bank, and then transfer the individual amounts to the other accounts using a foreign exchange broker. Apparently US residents can't open CurrencyFair accounts, but there are plenty of others. HIFX for example.


----------



## Pazcat (Mar 24, 2010)

Would this not be subject to tax in Spain too?
Worth checking out at least.


----------



## Alcalaina (Aug 6, 2010)

Pazcat said:


> Would this not be subject to tax in Spain too?
> Worth checking out at least.


If the heirs are tax resident in Spain, they will have to declare it (Modelo 650). But depending on the succession tax laws where they live, it may be below the threshold for tax. For example in Andalucia the first €250,000 of an inheritance from a parent is tax free.


----------



## Lynn R (Feb 21, 2014)

Alcalaina said:


> If the heirs are tax resident in Spain, they will have to declare it (Modelo 650). But depending on the succession tax laws where they live, it may be below the threshold for tax. For example in Andalucia the first €250,000 of an inheritance from a parent is tax free.


As I understood the situation from the original post, it is the OP's parents who received the inheritance (and presumably they are not resident in Spain) but have gifted 10k to the OP (who is resident in Spain) therefore it would be Spanish gift tax he would be liable for, rather than succession tax.

Do the same allowances apply?


----------



## Alcalaina (Aug 6, 2010)

Lynn R said:


> As I understood the situation from the original post, it is the OP's parents who received the inheritance (and presumably they are not resident in Spain) but have gifted 10k to the OP (who is resident in Spain) therefore it would be Spanish gift tax he would be liable for, rather than succession tax.
> 
> Do the same allowances apply?


Yes I believe so. Modelo 650 is for "Impuestos sobre Sucesiones y Donaciones". I expect Blanco will be along shortly to put us right.


----------



## GreenGreen88 (Apr 22, 2016)

Lynn R said:


> As I understood the situation from the original post, it is the OP's parents who received the inheritance (and presumably they are not resident in Spain) but have gifted 10k to the OP (who is resident in Spain) therefore it would be Spanish gift tax he would be liable for, rather than succession tax.
> 
> Do the same allowances apply?


Yes Lynn you're right. It was not me who received the inheritance it was my parents. They gave each of the children a gift of 10,000$ from the overall inheritance. Any info on the "spanish gift tax" you mentioned?


----------



## Alcalaina (Aug 6, 2010)

GreenGreen88 said:


> Yes Lynn you're right. It was not me who received the inheritance it was my parents. They gave each of the children a gift of 10,000$ from the overall inheritance. Any info on the "spanish gift tax" you mentioned?


The allowances for gift tax is the same as for inheritance tax. In Spanish law, an inheritance is simply a gift made after your death. 

A gift of this size from a parent or grandparent is unlikely to be taxable (as I mentioned, the allowance in Andalucia is €250,000), but you do need to check the allowance for the region you live in, as they do vary.


----------



## GreenGreen88 (Apr 22, 2016)

Alcalaina said:


> The allowances for gift tax is the same as for inheritance tax. In Spanish law, an inheritance is simply a gift made after your death.
> 
> A gift of this size from a parent or grandparent is unlikely to be taxable (as I mentioned, the allowance in Andalucia is €250,000), but you do need to check the allowance for the region you live in, as they do vary.


Ok cool so I guess Ill set it aside anyways and check in when I do hacienda. 

Thanks again for the advice!


----------



## Ifn (Jan 29, 2017)

GreenGreen88 said:


> Ok cool so I guess Ill set it aside anyways and check in when I do hacienda.
> 
> Thanks again for the advice!


Found this site but couldn't understand it. 

Spanish Inheritance & Gift Tax


----------



## GreenGreen88 (Apr 22, 2016)

Ifn said:


> Found this site but couldn't understand it.
> 
> Spanish Inheritance & Gift Tax


Uff you sent me on a google hunt! 

I found this as well, it seems the rules have been changing quite rapidly and often. It seems I may need to contact a lawyer. I hate to waste money on that! 

_"Inheritance and gift tax in Spain

The rules regarding inheritance and gift tax in Spain (also called succession tax) have now changed so that non-residents from within the EU/EEA are treated the same as residents. Previously, non-residents were charged around 80 percent more than residents. Now the rate is around 1–7 percent for all (depending on region). If you have paid the higher rate in the past (specifically from 1 January 2011–2015), you may be entitled to a refund.

As of 2017, some regions such as Andalucía have updated their inheritance and gift tax policies, resulting in many families not having to pay inheritance tax. Check your specific region’s laws for more information. You should seek specialist advice on these taxes as the Spanish tax system is complex. Read more in our guide to Spanish inheritance law, tax and writing a Spanish will."_


----------



## GreenGreen88 (Apr 22, 2016)

I think mostly Im afraid of my money getting stuck in limbo. My parents were once helping me get set up in a new apartment and sent me a 2500 through PayPal. It got flagged because of euro zone anti money laundering practices. My account got frozen for a while. It really freaked me out. I can't imagine having 10,000$ frozen in space so to speak.


----------



## Blanco53 (Mar 6, 2017)

GreenGreen88 said:


> Uff you sent me on a google hunt!
> 
> I found this as well, it seems the rules have been changing quite rapidly and often. It seems I may need to contact a lawyer. I hate to waste money on that!
> 
> ...


From your earlier comments, I assumed you are Spanish tax resident.

If so your "googling" doesn't really apply to your situation.

Up until a few years ago, the additional regional allowances could only be claimed by beneficiaries who were resident in Spain. However following a ruling of the European Court of Justice in September 2014 the extra exemptions established for resident beneficiaries in Spain can now also be claimed by children and spouse that are resident in other countries of the European Union. who are inheriting assets in Spain.

As the asset, you are being gifted is outside Spain, and if you are tax resident then the new rules do not apply.


----------



## Alcalaina (Aug 6, 2010)

GreenGreen88 said:


> I think mostly Im afraid of my money getting stuck in limbo. My parents were once helping me get set up in a new apartment and sent me a 2500 through PayPal. It got flagged because of euro zone anti money laundering practices. My account got frozen for a while. It really freaked me out. I can't imagine having 10,000$ frozen in space so to speak.


So is the money coming from the US? I'm sure if you use a proper broker like HIFX they will be able to ensure this doesn't happen, or at least advise you what to do. My transfers from the UK arrive in my Spanish account the same day, and I just tick a box declaring the source of the funds (pensions in my case, gift in your case).


----------



## GreenGreen88 (Apr 22, 2016)

Blanco53 said:


> From your earlier comments, I assumed you are Spanish tax resident.
> 
> If so your "googling" doesn't really apply to your situation.
> 
> ...


I am a legal "tax" resident in Spain. I have not filed taxes in Spain until now because I have not worked the time I have lived in Spain. So I don't know anything about the process or how to claim the money so I can properly have it taxed.


----------



## GreenGreen88 (Apr 22, 2016)

Alcalaina said:


> So is the money coming from the US? I'm sure if you use a proper broker like HIFX they will be able to ensure this doesn't happen, or at least advise you what to do. My transfers from the UK arrive in my Spanish account the same day, and I just tick a box declaring the source of the funds (pensions in my case, gift in your case).


Thats true. It is probably just my irrational fear as Ive never been gifted that much money in my life nor have I ever tried to move such a large amount of money over seas. Although I think your case is different because technically the UK is in the EU so transferring money is not exactly the same.


----------



## Alcalaina (Aug 6, 2010)

GreenGreen88 said:


> Thats true. It is probably just my irrational fear as Ive never been gifted that much money in my life nor have I ever tried to move such a large amount of money over seas. Although I think your case is different because technically the UK is in the EU so transferring money is not exactly the same.


Even within the EU we have the same anti money laundering regulations. It's really difficult to pay more than a thousand euros in cash into a bank account! You have to prove where it came from. But as I said, the broker should be able to advise.


----------



## ILikeJam (Mar 5, 2014)

GreenGreen88 said:


> I think mostly Im afraid of my money getting stuck in limbo. My parents were once helping me get set up in a new apartment and sent me a 2500 through PayPal. It got flagged because of euro zone anti money laundering practices. My account got frozen for a while. It really freaked me out. I can't imagine having 10,000$ frozen in space so to speak.



Do you have a Spanish bank account?

I'm not sure how it works from the US, but from my bank account in the UK (Bank of Scotland) I can do an international transfer direct from the UK account to a Spanish one from my iPhone. I've transferred about €5000 before and the charge was around £10.

I run my own business in the UK and once had an American client send me around $1000 through PayPal and they froze my account which had around £12000 working capital in it :smash:

Could you cash the cheque next time you're in the US and carry back a few large denomination notes to deposit in the bank?


----------



## Ifn (Jan 29, 2017)

GreenGreen88 said:


> Thats true. It is probably just my irrational fear as Ive never been gifted that much money in my life nor have I ever tried to move such a large amount of money over seas. Although I think your case is different because technically the UK is in the EU so transferring money is not exactly the same.


If it was me, I'd have had the the money deposited in a bank acct in the USA and just withdrawn from it. Here in the states, I have a Charles Shwab acct. And I use it when I need euros in Spain/Europe. They dont charge any transaction fees and reimburse for bank fees charges.


----------



## Alcalaina (Aug 6, 2010)

ILikeJam said:


> Could you cash the cheque next time you're in the US and carry back a few large denomination notes to deposit in the bank?


That would be far more difficult than doing an electronic transfer. For obvious reasons, the rules to try and prevent money laundering are especially strict for large cash deposits.


----------



## GreenGreen88 (Apr 22, 2016)

Alcalaina said:


> That would be far more difficult than doing an electronic transfer. For obvious reasons, the rules to try and prevent money laundering are especially strict for large cash deposits.


That was my thought as well. I have no desire to get caught with 9000 euros in my bag coming back into the country! 

Basically Ive decided to use a service (Transfer Wise) to send the money over. Im trying to be proactive by bringing proof of EVERYTHING--my parents bank statement, a notarised letter from them explaining what it is and where its from, a copy of their original inheritance check--everything. 

Thanks again all for the help!


----------



## expat16 (Jun 11, 2016)

GreenGreen88 said:


> I think mostly Im afraid of my money getting stuck in limbo. My parents were once helping me get set up in a new apartment and sent me a 2500 through PayPal. It got flagged because of euro zone anti money laundering practices. My account got frozen for a while. It really freaked me out. I can't imagine having 10,000$ frozen in space so to speak.


I had similar issues with paypal, thank god for transferwise. I need to send money regularly from my EU bank account to US to pay student loans. Paypal was proving to be a pita.

Never had issues with transferwise. What I'd do in your case is keep them in US account and transfer 2k monthly or bimonthly with transferwise.


----------



## GreenGreen88 (Apr 22, 2016)

expat16 said:


> I had similar issues with paypal, thank god for transferwise. I need to send money regularly from my EU bank account to US to pay student loans. Paypal was proving to be a pita.
> 
> Never had issues with transferwise. What I'd do in your case is keep them in US account and transfer 2k monthly or bimonthly with transferwise.


Im curious if you ever just tried a simple international wire transfer from one bank to the other?

I went to my parents bank yesterday with my mom and the banker there was surprised I was using Transfer Wise. She basically said: I think you're safer just doing a simple international wire transfer because its not coming from a third party. The two banks can communicate the source of the funds rather than the source being the third party. I don't know.


----------



## ILikeJam (Mar 5, 2014)

Alcalaina said:


> That would be far more difficult than doing an electronic transfer. For obvious reasons, the rules to try and prevent money laundering are especially strict for large cash deposits.



You wouldn't have to deposit it all at once though. 

(although I perfectly understand not wanting to have large amounts of cash lying around - just trying to think of some alternatives!)


----------



## expat16 (Jun 11, 2016)

GreenGreen88 said:


> Im curious if you ever just tried a simple international wire transfer from one bank to the other?
> 
> I went to my parents bank yesterday with my mom and the banker there was surprised I was using Transfer Wise. She basically said: I think you're safer just doing a simple international wire transfer because its not coming from a third party. The two banks can communicate the source of the funds rather than the source being the third party. I don't know.


I have done international transfers before, and found them to be a hassle, plus they are far more expensive than e.g. Transferwise. Indeed there are third parties involved, which is why they can offer the service more cheaply, the third parties cash in on currency exchange...

Here is an article about Transferwise TransferWise: how does it work and is it safe?


----------



## jdy (May 26, 2016)

GreenGreen88 said:


> Im curious if you ever just tried a simple international wire transfer from one bank to the other?
> 
> I went to my parents bank yesterday with my mom and the banker there was surprised I was using Transfer Wise. She basically said: I think you're safer just doing a simple international wire transfer because its not coming from a third party. The two banks can communicate the source of the funds rather than the source being the third party. I don't know.





GreenGreen88 said:


> Im curious if you ever just tried a simple international wire transfer from one bank to the other?
> 
> I went to my parents bank yesterday with my mom and the banker there was surprised I was using Transfer Wise. She basically said: I think you're safer just doing a simple international wire transfer because its not coming from a third party. The two banks can communicate the source of the funds rather than the source being the third party. I don't know.


Does not sound like good advice.

I've used TransferWise many times and had minimal hassle, they even allowed me to change my address from an EU one to a US one and link a US bank account.
PayPal won't let you do that (change country).

Local banks prey upon people attempting to wire transfer money.

TransferWise is also doing what they call a 'borderless account'.
It's a service available in the US now too.


----------



## MichelleMG (Jul 24, 2017)

GreenGreen88 said:


> My parents recently got an inheritance from my grandmother who passed away. They decided to use some of it to give each child 10,000$. My problem is I want to do everything by the book and I have no idea how. I have transferred small amounts of money to Spain before by PayPal or wire transfer but 10,000 seems way too big for any of that.
> 
> Any advice?


I used OFX when I transferred our savings from the US to Spain. It was a great rate and no fees involved. 

Good Luck!


----------



## velmar (Apr 2, 2017)

What about Bitcoin? You can buy it from localbitcoins.com, and sell it afterwards. They operate in more than 197 countries 

Sent from my Z1 using Tapatalk


----------



## 95995 (May 16, 2010)

velmar said:


> What about Bitcoin? You can buy it from localbitcoins.com, and sell it afterwards. They operate in more than 197 countries
> 
> Sent from my Z1 using Tapatalk


Maybe you should take a look at this Bitcoin: What's going on with the digital currency? - ABC News (Australian Broadcasting Corporation)


----------



## velmar (Apr 2, 2017)

Regardless ABC News you could buy a bit more then 3 BTC with your 10k USD and have them exchanged in euros. No questions asked


----------



## 95995 (May 16, 2010)

velmar said:


> Regardless ABC News you could buy a bit more then 3 BTC with your 10k USD and have them exchanged in euros. No questions asked


Depends how much risk you want to take. You could lose the lot.


----------



## velmar (Apr 2, 2017)

I agree. There's a certain risk


----------

