Gift tax amount

How much tax you must pay depends on the asset's market value, the date when you received the gift, the family relationship with the donor, the type of the asset being given, and whether or not you have received gifts from the same donor earlier.  

Fair market value of the asset

Gift tax is in direct proportion with the fair market value of the asset or property being given. It is customary to calculate fair market values differently for different types of assets.

Read more about the valuation of gifts

If you receive one single gift and its value is €5,000 (€4,000 before 1.1.2017) or more, your taxation is based on the gift's fair market value. Similarly, if you receive a number of gifts within three years and their total value goes over the threshold, your taxation is based on adding up the fair market values and applying the tax rate on the sum total.

More information on the three-year rule in gift taxation

Gift date

Another factor affecting the amount of tax is the date when the right of ownership is transferred to the recipient. If the date is 1 January 2017 or later, the tax schedule that came into force on 1 January 2017 determines the tax. If the date is 1 January 2015 – 31 December 2016, the tax schedule to be used is the one that was in force at that time.

Family relationship of the donor and recipient

Amounts are further affected by the nature of the family relationship because that is what determines the tax bracket. There are two brackets, each with different amounts.

The following family members are on the first bracket:

  • donor's spouse or partner in a registered partnership
  • donor's co-habiting partner who has or had a common child with the donor, or who was previously married to the donor or in a registered partnership with them  
  • an heir of the donor in descending or ascending line (child, grandchild, parent, grandparent etc.)
  • an heir of the donor's spouse or registered partner, in descending line (child, grandchild etc.)

For purposes of gift tax, adoptive parents and adoptive children are treated the same way as biological parents and children. Read more (in Finnish and Swedish): "Tax Administration's statement on inheritance and gift tax under different brackets - Verohallinnon kannanotto veroluokan soveltamisesta perintö- ja lahjaverotukseen.

The following are on the second bracket:

  • any relatives who are more distant than those who are on the first bracket
  • non-relatives, non-family members

If the donor gives a gift to two or more people with the intention that it becomes a shared gift, and at least one of the recipients is outside the first bracket, the assessment of gift tax is carried out in accordance with the second bracket. However, if the recipients are a married couple (a couple in a registered partnership) not on the same tax bracket in relation to the donor, the assessment is in accordance with the lower bracket.

More information on gifts intended as "shared"
 

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Gift tax schedule

The calculation must concern the entire value of the asset given as a gift. This means that despite the threshold of €5,000 you must not deduct a tax-exempt part — which would amount to €4,999 — from the fair market value of the asset. The deduction is taken into consideration in the schedules below.

More information on fair market values

Example: Liisa gets a gift worth €17,000 from Antti, her father. She fills in the gift tax return form using the entire value of €17,000  not €12,001 (which would be €17,000 minus €4,999). 

Tax values are confirmed as rounded down to the nearest one hundred euros. This means that the value is rounded down: for example, €4,899 is rounded down to €4,800. For example, when you round down €4,899 you get €4,800. However, when completing the return, you must indicate the full fair market values that are not rounded down.

Gift tax under the tax schedule that came into force on 1 January 2017  

First bracket i.e. close relatives and family

Value of gift, € Tax at the lower limit, € Tax % on amounts above the lower limit
 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 % 

 

For example, if a gift worth €40,000 was given, tax under the first bracket is computed as follows:

The value is in the €25,000-to-€55,000 range. Consequently, the amount at the lower threshold (€25,000) equals €1,700. What exceeds the threshold is €15,000 (the difference 40,000 minus 25,000), assessed at the rate of 10%.
The resulting gift tax is €1,700 + (10% × €15,000) = €1,700 + €1,500 = €3,200.

Second bracket i.e. relatives more distant than those on the first bracket

 Value of gift, €  Tax at the lower limit, € Tax % on amounts above the lower limit
 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 % 

For example, if a gift worth €40,000 was given, tax under the second bracket is as follows:

The value is in the €25,000-to-€55,000 range. Consequently, the amount at the lower threshold (€25,000) equals €3,900. What exceeds the threshold is €15,000 (the difference 40,000 minus 25,000), assessed at the rate of 25%.
The resulting tax is €3,900 + (25% × €15,000) = €3,900 + €3,750 = €7,650.

First bracket i.e. close relatives and family

First bracket i.e. close relatives and family
Value of gift, €Tax at the lower limit, €Tax % on amounts above the lower limit
4 000–17 0001008 %
17 000–50 0001 14011 %
50 000–200 0004 77014 %
200 000–1 000 00025 77017 %
1 000 000–161 70020 %

Second bracket i.e. relatives more distant than those on the first bracket

Second bracket i.e. relatives more distant than those on the first bracket
Value of gift, €Tax at the lower limit, €Tax % on amounts above the lower limit
4 000–17 00010021 %
17 000–50 0002 83027 %
50 000–1 000 00011 74033 %
1 000 000–325 24036 %

First bracket i.e. close relatives and family

First bracket i.e. close relatives and family
Value of gift, €Tax at the lower limit, €Tax % on amounts above the lower limit
4 000 – 17 0001007%
17 000 – 50 0001 01010%
50 000 – 200 0004 31013%
200 000 – 1 000 00023 81016%
1 000 000 –151 81019%

For example, if a gift worth €40,000 was given, tax under the first bracket is as follows:

Because the values between €17,000 and €50,000, the second line of the above schedule shows the range with (€17,000) as the lower limit, for which you must pay €1,010 of gift tax.  Add the part of the gift value that exceeds the lower limit (€40,000 minus €17,000 = €23,000) and apply the 10-percent tax rate on it.  You must pay €3,310 gift tax ( €1,010 + (10% × €23,000) ).

Second bracket i.e. relatives more distant than those on the first bracket

Second bracket i.e. relatives more distant than those on the first bracket
Value of gift, €Tax at the lower limit, €Tax % on amounts above the lower limit
4 000 – 17 00010020%
17 000 – 50 0002 70026%
50 000 – 1 000 00011 28032%
1 000 000  –315 28035%

For example, if a gift worth €40,000 was given, tax under the second bracket is as follows:

Because the values between €17,000 and €50,000, the second line of the above schedule shows the range with (€17,000) as the lower limit, for which you must pay €2,700 of gift tax.  Add the part of the gift value that exceeds the lower limit (€40,000 minus €17,000 = €23,000) and apply the 26-percent tax rate on it.  You must pay €8,680 gift tax ( €2,700 + (26% × €23,000) ).

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