Gift tax

The taxable base for gift tax consists of what is obtained by the recipient, after deduction of burdens and obligations benefiting the donor or a third party. For example, if a parent gifts their house to one of their children but at the same time retains the right to live in that house, the full value of the house is not gifted, but rather the value of the house burdened with the right of use and habitation, a lower value (the right of use and habitation has a value-reducing effect).

The amount of gift tax a recipient owes depends on:

The rate (regulated in Article 24) is the same as that of inheritance tax, but the exemptions are different.

Parents may annually gift their children €6,035 (2023) per child tax-free. Between the ages of 18 and 40, parents may use the increased exemption once per child, with an amount of €28,947 (2023). For the payment of an expensive study or education, the exemption is €60,298 (2023). If the one-time increased exemption is used for financing an expensive study, this gift must be recorded in a notarial deed. Since 2012, this obligation applies retroactively from January 1, 2010, no longer for the one-time increased exemption for the main residence.

For all other recipients, there is an annual exemption of €2,418 (2023) per donor. The exemptions are therefore much more limited than those for inheritance tax. For example, there is no higher exemption for parents and grandchildren.

For 2024, the exempted amounts are €6,633 (children) and €2,658 (others).

If you receive a business as a gift and continue that business, you can receive an exemption from gift tax. For example, if you take over the family business from your parents. This scheme is called the business succession scheme. The exemption is a maximum of €1,205,871 in 2023.