Donation free allowance - this should be noted

Everyone is happy when they get something for free. And a gift is always for the donor with a good feeling connected. This positive experience quickly becomes cloudy for both the donor and the recipient, however, when the tax authorities come and want to get their share of the gift. Because gifts are generally taxable.

Gift tax calculator

How much is the donation allowance?

However, there is a tax-free allowance for every gift. In other words, a precisely defined sum that can be donated without the state wanting to have its share in it.

The amount of this tax exemption depends on the degree of relationship between the donor and the recipient.

Here you should get precise legal advice. Because many people who would have to bequeath large sums of money if they died can avoid the inheritance tax then incurred through clever gifts.

Calculate the donation allowance!

How long is a donation allowance valid??

A tax-free allowance is always valid for a period of 10 years.

This means that after 10 years a new gift is possible and the tax-free allowance can be used again for a gift.

Who be heritage So given away in slices every 10 years, the state can use it to cheat. To what extent this is morally okay remains to be seen.

Adjustment of the gift allowance

The amount of the tax-free allowance is adjusted regularly. The last adjustment was made in 2010.

After this, spouses and registered life partners receive a tax-free allowance of € 500,000, higher sums fall 7-30% Taxes on.

The own children of a donor, his stepchildren and the children of his deceased children can enjoy the allowance of € 400,000. Grandchildren, on the other hand, receive € 200,000.

Now free to calculate!

The more distant the degree of kinship, the lower the tax-free allowance

The further breakdown of the gift allowances is based on the same model. The further away the relatives are, the lower the tax exemption.

For example, the donor’s parents or grandparents receive a tax-free allowance of € 20,000, which also applies to divorced spouses, their own siblings, step-parents, children-in-law or parents-in-law.

Even the more extensive related nieces and nephews receive the tax allowance of € 20,000. A tax of 15-43% applies to the additional amount.

All gift tax exemptions can also be found in our practical gift tax table.

Simply click on the picture!

Free allowance for distant relatives and unrelated people

All other gift recipients, such as other relatives or unrelated people, also receive a free allowance of € 20,000. However, you have to expect a tax burden of 30-50% for sums exceeding this.

A gift must be made known to the state as part of the income tax return.