# Gifting/loaning 20,000GBP to a Spanish resident/family member?



## zonby (Jul 1, 2021)

Bit of a specific situation, but I hope someone here will know the UK and Spanish systems well enough to suggest something. 

I want to give my son around 20-40k GBP in order to start a new business here. He's a resident here and not in the UK any more, but still has a UK bank account and active mailing address there. (probably that account needs to be closed after brexit? but for now it is still open)

I am a resident here, and also still resident in the UK (planning to deregister soon as I can travel back to tie up lose ends) where the money currently is. I don't have any large amount of wealth or income, except my pension and a small house that is currently sitting empty in the UK waiting to be sold. I'm also not planning to die in the next 7 years 

So what would be the best way to do this without having to pay gift tax either here or in the UK?

Could I simply transfer the money to his UK account, and he transfers/exchanges it to Spain? Or would this be illegal/cause problems in either country? 

Or should we make some kind of official loan/investment paper that says that the money is being invested or loaned and is not a gift? I do hope that the money will be paid back some day if the business doesn't fail, but I am also comfortable with it being considered a gift if that doesn't cause tax problems.

Thanks in advance for any suggestions!


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## snikpoh (Nov 19, 2007)

zonby said:


> Bit of a specific situation, but I hope someone here will know the UK and Spanish systems well enough to suggest something.
> 
> I want to give my son around 20-40k GBP in order to start a new business here. He's a resident here and not in the UK any more, but still has a UK bank account and active mailing address there. (probably that account needs to be closed after brexit? but for now it is still open)
> 
> ...


Hi, I guess firstly I should state that you can only be resident in one place (by definition), not that it matters to your question.

Strictly speaking your son would have to pay gift tax on the amount. However, I suspect many don't bother to declare this kind of gift.


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