Send money to your loved ones is a gesture that involves much more than just looking at figures on the screen, and doing so with a view to the tax obligations is part of the care we take when we support our family from so far away.
Every transfer you make is much more than money: it is, without a doubt, an act of deep love. It is like sending a hug across the ocean, an affectionate gesture that is felt despite the thousands of kilometres that separate you.
All of this is very important to us, so we don't want this help and happiness to turn into something bitter that could lead to problems in the future. That's why today we want to talk to you about something you should bear in mind: tax obligations.
It is vital that you know them and give them the importance they really have, because if there is one thing we don't want is for our efforts to be cut short along the way. Ideally everything we send arrives complete at its destination, but also that we live with total peace of mind, knowing that we are contributing responsibly to the European country that hosts us.
That's why in this article we'll tell you all about them in a clear and as simple way as possible. We will talk about what these obligations are, why they matter so much, how they are fulfilled in each European country and the common mistakes that often cause unnecessary stress.
What are tax obligations and why taking care of them protects your peace of mind?
A tax liability is simply the responsibility that you as a migrant you have to inform the authorities in the country where you live. (Spain, Italy, France, Germany, etc.) about your economic movements. For the migrant sending to Venezuela, this includes declaring transfers of large sums of money, the accounts or property you hold in the country of origin, and your general income situation.
Why does it matter so much?
Because contribute responsibly, This not only avoids fines or legal problems, but also gives you peace of mind. It is very important to sleep peacefully, knowing that everything is declared correctly, without the shadow of doubt hovering over your head, constantly wondering if the tax authorities might question any move you make. This is just a way of protecting your family's future and your own in Europe.
What are tax obligations in Europe like?
Europe does not directly control all the money you send. as a remittance; but what it does demand is transparency over the movements over €10,000the heritage foreigner you have, and the worldwide income you receive.
Engrave this in your heart. In all international transfer there is a limit that you cannot ignore: 10,000 euros. All of Europe shares this (this is set out in EU Regulation 2018/1672). If you exceed this amount in physical cash or through a one-off transfer, you must declare it beforehand.
For each of the countries there is a different form that you must fill out before transfer this money, for example:
- Spain: Model S1 before shipment.
- Italy: Modello CU.
- France: Déclaration préalable.
- Germany: AUW (over €12,500).
- Portugal: Prior communication.
You have to keep in mind, that this are not taxes, they are declarations justifying the legitimate origin of this money., Whether it comes from your salary from your job in Europe, some savings you have lying around, etc.
Without these declarations, you run the risk of having your accounts blocked or being investigated. But don't worry, because with Curiara, we make it easy. When you make a transfer, you receive immediately the vouchers complete, ready to submit to the Treasury.
These include the datesthe amounts of money and the IBAN of the recipient. As you can see, it is much easier if you have such transparent documentation.
You are at statements preventive measures avoid weeks of withholding of money, So your family gets help in time, and you sleep peacefully, without worries.
Declare your assets with peace of mind
If you maintain accounts in your country, if you own property or do you continue to do investments in your home country, Europe requires you to declare them annually as an exercise in transparency. Depending on the country you live in, you may be asked to fill in a different form, but here is an outline of some that may help you:
- SpainWith the “model 720”You must declare your accounts, securities or real estate over €50,000 for each category. This is usually done in the months of January to March and is a procedure that you can register electronically. Be careful not to do it accurately, you can face fines of at least €10,000 for each group not declared.
- Italy: You have to fill in what they call the “Quadro RW Modello Redditi”Here you have to declare all your current accounts, deposits and foreign securities with no minimum.
- FranceThe “Formula 3916”is the appropriate one to declare all the bank accounts you have, as well as foreign contracts. The fine amounts to €1,500 for each undeclared account and €750 added for each year of delay.
- GermanyIn Germany you have to fill in the “.“Anlage AUS Einkommensteuersteuererklärung ommensteuersteuererklärung”to declare your foreign assets over €10,000. It is done every year from April to July.
- PortugalWith the “Schedule J IRS”declare all foreign assets held by you. File it in the months of April to June.
Remember that if you contribute responsibly, you will have zero annual worries, so you can simply note the protocol of the country you live in and the months you have to submit it, so you won't be caught by surprise later.
Report your worldwide income correctly
This is the issue that often generates the most doubts among migrants, but it is also the most important to take into account in order to ensure your peace of mind: the annual tax return (IRPF in Spain, IRPEF in Italy, IR in France, etc.).
The first thing you should always be clear about is that the money you send to Venezuela does not pay extra tax on this income tax return. For example, if you earned 1,800 euros working, you already paid your monthly taxes on that 1,800 euros.
So when you send 400 euros to your loved ones, the tax authorities in each country do not charge you any more for those 400 euros, as they are already taxed as part of your salary.
What it does you declare every year that's all what you have earned during the twelve months of the year and you have been working. That is, your full salary from your job in Europe, any extra money you have received (overtime, tips, any freelance work), interest from the bank, or rent, if you have any. It's like doing the annual summary of your personal finances for the tax office.
The news you're going to like
1. You can get deductions for your familyIf you have children studying or parents who are financially dependent on you, you can subtract money from what you have to pay in taxes. In Spain, for example, it is a minimum of €2,400 per year per child, plus some extra if they are studying. Italy and France have similar deductions.
2. Agreements of double taxationIf you worked before in another country (Colombia, Peru, United States) and you receive some payment from there, you don't pay the same taxes twice. Spain, specifically, has agreements with more than 90 countries, where you declare the income, but subtract what you already paid in the other country.
Curiara helps you with these procedures
When the Treasury asks you «Where did the money you sent to your country come from?», You only have to make one simple gesture:
- Open Curiara.
- See every date, every exact amount, every Venezuelan IBAN you have sent money to and every exchange rate.
- This is irrefutable proof that you sent your savings legitimately to support the family.
When you have done all this, the news can be positive. Many migrants receive a personal income tax refund thanks to family deductions that we have mentioned, which is why having the history that Curiara provides you with and that justifies all your movements is so positive and necessary.
Common mistakes to avoid
Here's a quick summary of everything we've talked about before, the things you need to be aware of, as well as the mistakes you shouldn't make:
- Do not declare money movements of more than €10,000: avoid unexpected money blockages.
- Forgetting to declare any accounts you have in your home country: entails annual fines.
- Use informal channels for your donationsThey probably do not have the documentation that you will later need to submit to the tax authorities.
- Failure to keep receiptsIt is impossible to justify the origin of your movements if you do not keep this, so always bear this in mind when making any transaction.
With Curiara you won't have any of these problems, so here are the steps to contribute responsibly:
- Register (in less than 10 minutes). We comply with international regulations; that's why we verify your identity only once.
- Add your beneficiary: Complete and correct IBAN, SWIFT/BIC or bank coordinates.
- Choose the amount and review: you will see the daily rate and the applicable fee for your approval.
- PayYou can do this by card (recommended), bank transfer or Bizum (if you are in Spain).
- You'll have it all under controlYou will be able to monitor in real time.
- Handing over the moneyYour family receives your contribution in less than 24 working hours (except weekends and holidays in Venezuela).
A commitment that protects your effort
Every transfer you send is undoubtedly a «I love you even though you are far away». That money translates into care, It can be used to buy much-needed medicines or the smile of a child waiting to buy the toy he or she loves the most. For all these reasons, remember that keeping tax obligations up to date, is something that also protects this love for your loved ones. Avoid money blocks, fines, or investigations by following the simple steps we have told you about in this article.
Because in Curiara, first and foremost, we celebrate your courage. We are the platform that understands you, helps you in a regulated, transparent and fast way. In short, supporting your loved ones from Europe with fiscal responsibility means taking care of them more than ever.