Javea Green Bowls

WITH a full complement of 32 teams, that is 64 competitors, dressed in red, white and blue themes, turned up to battle it out for top place for the Javea Green BC Corcovo Independence Pairs.

It was rather a hot day, matched by the determination of the competitors to be at the top of the league table. After the second game there was a team that looked untouchable, with second and third places very close.

The next four places were all square, so it was anybody’s guess what the third game would bring for the teams. As expected, there were some changes, but the top spot belonged to Calpe Bowls Club, with ‘The Cavalry’ ­ because they came in at the last moment ­ formed by Doreen Cornthwaite and Steve Upton lifting the trophy and grinning like Cheshire Cats.

In second place, jumping up from fourth, were ‘The Mavericks’, ie Jeff Richards and Dee Hamilton, a combo team from Javea Green and Benitachell BC.

In third place were a team from Calpe Paseo BC, ‘The Seasiders’ with Marjorie Parnham and Steve McNally, who with homemade tshirts they looked the part. There was even a prize for fourth place, with ‘Jack Reachers’ Dudley and Carol Davies, who received a couple of nice bottles of the Corcovo Red for their efforts.

The awards didn’t stop there, as the prize for the best ­ dressed pair went to Maria Morawiec and Dave Dickinson ­ and very smart they were too ­ who took home a nice bottle of red from Franco, who also provided a nice wine tasting session at the end of the day. The Club would like to thank their sponsors Corcovo Winery from Valdepenas and represented by Franco who presented the prizes, Calpe BC for hosting the event and all the competitors who made the day such a success.

AS explained in previous articles, there are different reductions in the Gift Tax in the Valencian Community. One of the most well­known is the Gift Tax reduction of €100,000 in gifts made between certain family members (for instance, from parents to children). In this week’s article we analyse the requirements that must be met in order to make use

How does the Gift Tax reduction of €100,000 work in the Valencian Region? We analyse its main requirements. Gift tax. Donation tax.

of this reduction. Gift Tax reduction of €100,000 due to kinship. Valencian Region

Let’s start with the basics.

When a gift is made, the individual obliged to pay Gift Tax is always the donee. That is, the person receiving the gift. Art 10 Bis. 1º of Law 13/1997 states that when a gift is made from parents to children (or from the children to his/her parents) the first €100,000 are exempt and do not pay Gift Tax. This reduction also applies among grandparents and grandchildren, provided that the parents between them have passed away.

What requirements must be met in order to be able to make use of this reduction?

A common misconception is to think that if the amount of the gift is less than €100,000, automatically no Gift Tax is payable. Nothing could be further from the truth. The use of this reduction is conditioned to the fulfilment of several requirements:

It is essential that the gift is formalised in a public deed signed before a Notary Public.

If the donor or the recipient are foreigners, they must have an NIE (Foreigners’ Identification Number). And their NIE must be registered with the Spanish Tax Agency.

It is necessary to provide the birth certificate, to prove the kinship relationship between donor and recipient. If this document is issued outside of Spain, it may need to be apostilled and translated.

The pre­existing assets of the recipient must be under €600,000. Otherwise, this reduction cannot be applied.

Cases in which the reduction does NOT apply

In addition to the abovementioned requirements, there are three specific cases in which the gift tax reduction of €100,000 cannot be used:

1. When the donor applied this tax reduction, in the acquisition of assets of the same value in the previous 10 years.

For instance: Pedro receives a donation of €100,000 from his father Miguel. And Pedro uses the reduction for kinship, so that he does not pay Gift Tax. Later, Pedro wants to gift €100,000 to his daughter María. She will only qualify for the €100,000 reduction, if at least 10 years have elapsed from the previous donation.

2. When the recipient, in the previous 10 years, made a gift to a third party, who used this reduction when declaring the Gift Tax.

In other words, Pedro wants to gift €100,000 to his daughter Ana. However, Ana will not be able to take advantage of this reduction if, in the previous 10 years, Ana had gifted €100,000 to someone else, and this person made use of the kinship reduction.

3. When the donor received from the recipients, by inheritance and by their pure and simple renunciation, assets of the same value in the 10 years, making use of the reduction of €100,000.

Let’s imagine there is an inheritance in which two heiresses (daughters) renounce to what corresponds to them, and their rights go to their mother. Their mother, when inheriting their share, applies the reduction of €100,000. If the mother, after that, wishes to make a gift to her daughters, they will not be able to apply the kinship unless 10 years have elapsed.

Conclusions

The gift tax reduction of €100,000 is one of the most frequently used tax benefits when calculating the Gift or Donation Tax. However, there are many requirements that must be fulfilled to avoid surprises, in the form of a notification from the Valencian Tax Agency. At White ­ Baos Lawyers we are experts on Inheritance Tax and Gift Tax. Do not hesitate to contact us, we will study your case, and offer you expert legal advice.

The information provided in this article is not intended to be legal advice, but merely conveys information related to legal issues.

NATIONAL GEOGRAPHIC has published a list of the best beaches in the Valencia Region to enjoy this summer.

Top of the list is the Cala Granadella in Javea, which the publication describes as “a jewel; a picture postcard setting with crystal clear turquoise waters makes this one of the regulars on the list of the best beaches in Spain.”

National Geographic goes on to explain that the Granadella is “a beach of gravel and white rocks ideal for scuba diving. Despite being a wild ­ looking cove, it has several services and fa­ cilities that make it a favourite for many locals and visitors.”

Next on the list is l’Albir beach in Alfaz del Pi. The publication recommends it “for those looking to escape the bustle of Benidorm” and explains that it is “a semi ­ urban beach made of small, soft pebbles and not sand, which can be an advantage for those who don’t like to take sand home with them.”

It adds that “its translucent waters are ideal for snorkellers.”

El Portet beach in