Instructions for filing and payment
You must file a gift tax return and pay gift tax if:
- you receive a gift worth €5,000 or more
- you receive a number of gifts from one donor during a 3-year period and their total value is €5,000 or more.
If you get a gift with a lower value, you do not have to file a return.
How to file a gift tax return
File a return within 3 months from the date when you received the gift.
You need to give the following information:
family relationship between donor and recipient(s).
The above information has an impact on how much gift tax you must pay.
If you are given other assets and property than money – e.g. securities, a share in a housing company or a real estate unit – you must check the asset's fair market value. Valuation of a gift.
If necessary, you can use the paper form to file the return.
When the Tax Administration has finished processing the return and assessed the tax you must pay, you will find the decision document in MyTax. You will also receive it by post. It takes 6 months on average to process a gift tax return but in some cases you may receive a decision in 1 to 4 weeks.
When you have received the decision, you can pay the tax directly in MyTax. The necessary details are always pre-filled in the payment template. Alternatively, you can pay through your e-bank service. Enclosed with the decision you will get a bank form with the necessary details.
If you have lost the bank forms, you can check the necessary details for payment in MyTax.
When is the due date?
The first due date will be approximately 3 months after the date when you receive the gift tax decision.
If the tax is below €500, you must pay it in one instalment. Higher amounts are split into two instalments. In this case, the second due date is two months after the first.
If the due date is a Saturday, Sunday or other holiday, you can pay on the next business day without having to pay a late-payment charge.
Frequently asked questions
A parent or guardian files a gift tax return on the child's behalf.
You can file a tax return on the child's behalf in MyTax. Log in to MyTax with you personal online banking codes. After login the system will check whether you have the guardian's right to manage the child's tax matters.
If two or more people have given you assets as gifts, file a separate gift tax return on each gift. Separate returns must be filed even if only one deed of gift has been drafted.
If there are multiple recipients, each one of them must file a separate gift tax return.
If there are multiple donors, the gift tax is calculated separately for gifts received from each donor.
Example: Antti and his wife Tiina give their daughter Liisa €7,500, paying €3,750 each. As both gifts are worth less than €5,000, Liisa does not have to pay any gift tax on the gifts.
If Antti and Tiina were to give Liisa €10,500, paying €5,250 each, Liisa would have to pay gift tax on these two gifts under bracket 1. For €5,250, gift tax under bracket 1 is €116 in 2018. Liisa's gift tax would be €232 in total (2 × €116).
If the gift is a shared gift, the recipients file only one return. Gifts are treated as shared only if the deed of title (e.g. deed of gift) expressly states that the asset is intended to be a shared gift.
Normally, there is no need to submit a deed of gift to the Tax Administration.
The instructions for completing a gift tax return contain a list of the circumstances that make it mandatory to enclose a deed of gift or other documentation with a gift tax return. Read more about filling out a gift tax return
Even so, a deed of gift must be drawn up in the following circumstances:
- The gift is a real estate unit. Donation of real estate must be attested by a notary public. More information on attesting real estate transfer is available on the website of National Land Survey (www.maanmittauslaitos.fi).
- The donor of the gift retains the right of possession or other rights.
If the total value of the gift or gifts stays below the €5,000 threshold, you do not have to file a return unless separately requested. However, sometimes it is advisable to file a return when you receive a gift of smaller value. If you were to sell the asset later, you could then use the confirmed gift tax value of the asset as the acquisition cost.
You can use the gift tax value to calculate capital gains
If the Tax Administration has not confirmed the tax value of the asset, the acquisition cost is usually based on the length of time the seller has held the asset and is either 20% or 40% of the selling price (acquisition cost presumption). When you sell an asset, it may be more favourable to you to use the confirmed tax value than the acquisition cost presumption. If gift tax returns are submitted and tax values confirmed, this may be useful even if the total value of the gift or gifts is below €5,000 (and therefore no gift tax is imposed).
If you receive listed shares, their quotation value on the date of the gift can be regarded as their acquisition cost even if the taxable value has not been confirmed for purposes of gift taxation. This means that if the value of such shares stays below €5,000, you do not have to file a gift tax return unless you receive other gifts from the same donor and their total value exceeds the €5,000 threshold within a 3-year period.
If the donor has specified the gift as a shared gift, one recipient files a return on all the recipients' behalf. The Tax Administration imposes a joint tax for the people who receive the gift, and they are jointly responsible for paying it. The gift tax is calculated based on the total value of the gift.
Gifts are treated as shared only if the deed of title (e.g. deed of gift) expressly states that the asset is intended to be a shared gift.