Gifts designated as a shared gift

Donors may give an asset to two or more people at the same time. However, to be treated as a shared gift for tax purposes, the gift must meet a set of requirements.

A gift given to a group of people may be treated as shared 

One single asset can be given to many people. If the donor has set out a deed of gift stating that they are giving a gift that must be shared by its recipients, it is treated as a single gift for purposes of gift tax. Similarly, in the case of a gift-like sale, tax treatment may be that of a shared gift if the deed expressly states that the donor intends it as a shared gift.

More information on gift-like sale

How to file a gift tax return?

The recipients of a shared gift only complete one single gift tax return, and the tax authority only assesses one amount of gift tax. All the recipients are jointly responsible for paying it. Electronic and paper filing are available.

  • E-File a gift tax return, pay the tax (
    It is enough if just one of the gift recipients logs on to MyTax with his or her e-bank security codes.The Tax Administration sends the gift tax demand letter back to this person. Both the MyTax channel and postal service are used, and bank information for payment is included. We also notify the other recipients.
  • File a gift tax return on paper (Form 3602e, Form 3603e)
    One of the recipients fills in the form and signs it on behalf of everyone who shares the gift.

Applicable tax bracket depends on who the recipients are

The tax to be paid by the recipients who share the gift is assessed on the full value of the entire asset. It is assessed under the tax bracket that applies to the one among the recipients whose family relation to the donor is the most distant. If all the recipients are on tax bracket 1, gift tax will be under that bracket. But if just one of them is on tax bracket 2, the entire gift tax on the asset will be under tax bracket 2.

However, if a married couple or the two partners of a registered partnership get a shared gift, the tax bracket affecting their gift tax is that of the spouse/partner whose family relationship is the closest.  In other words, gift tax under the first bracket is assessed if one of the two recipients, in relation to the donor, is on the first bracket. And if both of them are on tax bracket 2, the entire gift tax on the asset will be under tax bracket 2.

More information on tax brackets

Example: Antti gives his daughter Liisa and Ville, her husband, a gift, intended as shared, worth €80,000. He set out a deed of gift stating that it's a gift that must be shared by its recipients. Liisa and Ville only have to file one gift tax return and they inform the tax office that the received asset should be treated as a shared gift. They must pay €7,700 in gift tax under the first bracket under the 2017 schedule, and they have joint responsibility for its payment. 

However, if Liisa and Ville were not a married couple, the shared gift coming from Antti would entail a gift tax under the second bracket.  Liisa and Ville would have to pay €18,650 in gift tax under the second bracket and the 2017 schedule. 

If the gift were not intended as a shared one, and Antti would instead be giving two 40,000-euro gifts to Liisa and Ville, respectively, the tax office would assess gift tax separately for both of them. In this case, whether Liisa and Ville are married would have no significance.

However, Liisa pays tax under the first tax-bracket schedule because she is Antti's daughter.  Gift tax for such a gift given in 2017 equals €3,200.  Ville, not being a relative of Antti's, pays tax under the second bracket.  His gift tax for 2017 is €7,650.  The two of them must pay €10,850.  

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