Gift tax – 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.

1

FIND OUT THE GIFT’S TAXABLE VALUE

If you are given other assets or 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. Read more about fair market values 

2

SUBMIT A GIFT TAX RETURN

Do this before 3 months have elapsed from the date when you received the gift.

To fill in the return form, you must have the following information on hand:

  • The donor’s personal ID
  • The value of the gift you received
  • The date when you received the gift
  • The family relationship between the donor and you, the recipient

Go to MyTax

If it is more convenient, you can use the paper form to file the return.

3

YOU RECEIVE THE GIFT TAX DECISION WITH INSTRUCTIONS FOR PAYMENT

After your gift tax return has been processed, you will see the decision in MyTax. If you have activated electronic Suomi.fi messages and do not receive paper mail, you will receive the decision only in MyTax.

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. You can use the calculator to estimate the amount.

After you have received the decision, you can pay the tax in MyTax, where the details needed for payment have been pre-completed. Enclosed with the decision you will also receive a bank form with the necessary payment details. 

If you received the forms but you have misplaced them, you can log in to MyTax to find the details you need for paying.

When is the due date for gift tax?

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.

Did you pay gift tax late?

Need an extension of time to pay the tax?

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 instead, 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 2021. 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.

There is no need to present the deed of gift to the Tax Administration in most cases.

The guidance on how to fill out a gift tax return form contains 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 if it is not necessary to send the deed of gift to the Tax Administration, the deed must still be drawn up if:

  • Real estate is given as a gift. 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 the return unless the Tax Administration has requested that you do so. However, there are situations – corporate shares of a non-listed company as a gift – that make it useful for you to submit a gift tax return even if the value stays below the threshold of gift taxation. After the return is processed, a confirmed gift tax value is recorded for the asset you received. If you sell the asset later, you will be able to use the confirmed value as the acquisition cost.

If the Tax Administration has not confirmed the tax value of an asset that you sell, its acquisition cost is based on the length of time that you, the seller, has held the asset. The deemed values are either 20% or 40% of the selling price. When you sell an asset, it may be more advantageous to you to use the confirmed tax value than the acquisition cost presumption.

If you receive listed shares, their quotation value at the stock exchange on the date of the gift is their acquisition cost, even if no value has been confirmed for purposes of gift taxation. This means that if the value of stock-exchange-listed 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 the combined total value goes over the €5,000 threshold within a 3-year period.

If the donor has designated the gift as a shared gift, one of the recipients must submit 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 (a deed of gift, a gift certificate etc.) expressly states that the asset is intended to be received as a shared gift.

Read more about shared gifts

If you submitted a gift tax return and notice some errors, please contact us