Overview

• Both the donor and the recipient are expected to notify the local tax office of a gift within three months, with the deadline set in §30 of the inheritance and gift tax law.
• Tax‑free allowances vary by relationship, including €500,000 for spouses, €400,000 for children, €200,000 for grandchildren and €20,000 for most other recipients.
• Gifts to the same person are aggregated over ten years, so multiple smaller transfers can exceed the allowance and lead to a tax bill if not tracked and reported.
• Customary occasion gifts, reasonable maintenance payments and transfers notarised or recorded by a court are generally exempt under Paragraph 13.
• For larger or complex transfers, experts recommend notarised gift contracts and professional advice, and property gifts may require submitting an independent valuation to challenge the tax office’s standard assessment.