Money present may seem a good surprise, but there are cases where they can bring tax obligations. In Portugal, a cash donation that exceeds 500 euros has to be communicated to finances and, in certain situations, is subject to tax payment.
According to the Tax Authority, these rules apply not only to grades and coins delivered by hand, but also to bank transfers and checks. That is, even if the amount is not physically delivered, it continues to be considered a donation for tax purposes.
Gifts that count as donations
According to the Doctor Finance portal, any amount received in cash, either on a birthday, marriage or another celebration, is legally treated as a donation. The reference value is clear: above 500 euros, the tax authorities must be informed and may charge tax.
There are, however, exceptions. Donations in goods, such as appliances or vehicles, are not covered by the same rules. In addition, money offers between direct family members (spouses, parents and children, or grandparents and grandchildren) benefit from exemption, provided that it is properly marked in the declaration form.
How much is paid and who pays
The tax applied is the seal tax, which corresponds to 10% of the amount received. Thus, a donation of 1000 euros implies a payment of 100 euros to the state. It is always the beneficiary of the amount that assumes the charge, not who makes the offer.
How to declare to finances
The declaration must be made through its own form, accompanied by Annexes I-03 and II-02, submitted online or at a finance counter by the end of the third month after the donation. It is mandatory to identify the donor, explain the reason for the offer and indicate whether there is a basis for exemption.
If you receive more than a donation from different people, you have to deliver a form for each. The Finance Portal provides detailed instructions to fill these documents.
Because declaring protects the taxpayer
According to, this obligation aims to prevent what designates as “manifestations of fortune”, situations in which a taxpayer has spending or deposits far above the declared income. Declareing the donation avoids further explanations and possible penalties.
Consequences of not fulfilling
If the donation is not declared, the fines may vary between 150 and 3750 euros. If the statement has been made, but the tax has not been paid, the fine may reach double the missing amount.
Banks are also aware of high deposits, reporting to the authorities with values exceeding 5000 euros. This means that even without direct transfer, large amounts in cash can be signaled.
Receiving a generous gift in cash may be a source of celebration, but above certain values, it is accompanied by legal obligations that should not be ignored.
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