Gift tax amount
The amount of gift tax is affected by the value of the gift and the tax bracket of the recipient. The family relation between the donor and the recipient determines the tax bracket.
You must pay gift tax if the value of the gift you get is €5,000 or more. You must also pay gift tax if you receive several gifts from one donor during a 3-year period and their total value is €5,000 or more.
How to estimate how much gift tax you must pay
- Find out the fair market value, i.e. the probable selling price, of the gift you receive. How to valuate a gift?
- Calculate the tax with the gift tax calculator (in Finnish and Swedish) or by using the tables below.
During the past 3 years, did you receive any other gifts from the same donor? If yes, you must include them in your calculation. Adding up the gifts received within 3 years
Gift tax tables
Estimate the gift tax based on the gift value and family relationship using the following tables:
Calculate the gift tax based on the total value of the gift. This means that although gifts are free of tax up until the threshold of €5,000, you must not deduct the tax-exempt part of €4,999 from the fair market value of the asset. The tax-exempt part has already been deducted in the tables below.
Bracket 1: the closest relatives and family
| Value of gift, € | Tax at the lower limit, € | Tax rate (%) for the exceeding part |
|---|---|---|
| 5,000–25,000 | 100 | 8 % |
| 25,000–55,000 | 1,700 | 10 % |
| 55,000–200,000 | 4,700 | 12 % |
| 200,000–1,000,000 | 22,100 | 15 % |
| 1,000,000– | 142,100 | 17 % |
Example: You receive €30,000 as a cash gift from your grandmother. The tax on €25,000 amounts to €1,700. For the part going over €25,000 – in other words, for €5,000 – the tax percentage is 10%, resulting in €500 of tax. You pay €2,200 in gift tax.
Bracket 2: other than close relatives
| Value of gift, € | Tax at the lower limit, € | Tax rate (%) for the exceeding part |
|---|---|---|
| 5,000–25,000 | 100 | 19 % |
| 25,000–55,000 | 3,900 | 25 % |
| 55,000–200,000 | 11,400 | 29 % |
| 200,000–1,000,000 | 53,450 | 31 % |
| 1,000,000– | 301,450 | 33 % |
Example: You receive €30,000 as a cash gift from your sister. The tax on €25,000 amounts to €3,900. For the part going over €25,000 – in other words, for €5,000 – the tax percentage is 25%, resulting in €1,250 of tax. You pay €5,150 in gift tax.
Calculate the gift tax based on the total value of the gift. Although the €4,000 threshold was applied to gifts before 2017, you must not deduct the tax-exempt part of €3,999 from the fair market value of the asset. The tax-exempt part has already been deducted in the tables below.
Bracket 1: the closest relatives and family
| Value of gift, € | Tax at the lower limit, € | Tax rate (%) for the exceeding part |
|---|---|---|
| 4,000–17,000 | 100 | 8 % |
| 17,000–50,000 | 1,140 | 11 % |
| 50,000–200,000 | 4,770 | 14 % |
| 200,000–1,000,000 | 25,770 | 17 % |
| 1,000,000– | 161,700 | 20 % |
Bracket 2: other than close relatives
| Value of gift, € | Tax at the lower limit, € | Tax rate (%) for the exceeding part |
|---|---|---|
| 4,000–17,000 | 100 | 21 % |
| 17,000–50,000 | 2,830 | 27 % |
| 50,000–1,000,000 | 11,740 | 33 % |
| 1,000,000– | 325,240 | 36 % |
Tax brackets in gift taxation
Gift tax is affected by the family relationship between the donor and the recipient. The relationship determines the tax category, i.e. the tax bracket. There are two tax brackets. For people falling under tax bracket 1, the gift tax is lower than for those of bracket 2.
- a spouse or a partner in a registered partnership
- a co-habiting partner who has (or has had) a child with the donor or who has previously been married to or in a registered partnership with the donor
- an heir in the direct line of ascent or descent (child, grandchild, parent, grandparent, etc.). Adoptive children and parents are treated in the same way as biological relatives.
- an heir of the donor's spouse or registered partner in the direct line of descent (child, grandchild, etc.).
- relatives who are more distant than relatives falling under bracket 1
- non-relatives, non-family members.
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