The applicant, who is resident for tax purposes in Canada, asks what rules apply to a gift from his parents of the proceeds from the sale of a property located in the region of Castilla y León.

The Directorate General for Taxation considers that a monetary donation made to a donee who is not resident in Spanish territory will be subject to taxation in Spain provided that the money that is the object of the donation is located in Spain at the time the legal transaction is carried out. Moreover, the taxpayer will be entitled to apply the State inheritance and gift tax rules or, at his choice, the regional rules of the Autonomous Community where the money donated has been located for the greatest number of days during the five years immediately prior to the transfer, counted from date to date.

Consequently, it emerges from the consultation that the place where the property whose transfer was used to make the monetary donation is located is irrelevant for determining the applicable regional legislation; only the territory where the money is located will be taken into account.