If you receive a gift or donation, you often pay tax on it. How much you pay depends on the amount of the donation and your relationship to the donor. Even if you make a donation, you have to deal with tax rules. We are fully aware of the options when it comes to donating and offer insight into your situation. You will then never pay too much gift tax.
Want to make a tax-advantaged gift? Giving in life is often fiscally advantageous. With a donation, you can, for example, offer your child(ren) or grandchild(ren) financial support to buy a house or pay for a study. Do you want to support your child to buy or renovate a house? Then the child will pay no gift tax on an amount of up to €28,947 in 2023. You can also donate money to charity. Donating while alive reduces your estate. As a result, heirs will soon have to pay less inheritance tax. We help you make the right choices and draw up a donation plan with a donation agreement.
With a gift on paper, you put down on paper that you will give someone an amount of money over a certain period of time. For example, because you can't spare the money now. Or because it is 'tied up' in a house. In notarial deeds, a gift on paper is often called an "acknowledgement of debt out of generosity". By donating on paper, you transfer part of the assets without having to pay them out immediately. This gift is set off against the estate as a debt. Because of this set-off, the heirs owe much less inheritance tax.
Do you have to file a gift tax return? If you receive a gift in 2023 that exceeds €2,418 (€2,274 in 2022), you will have to file a gift tax return. If you receive a gift from your parents, the limit is €6,035 in 2023. We are happy to help you prepare your gift tax return.
Question about gifting or gift tax? Advice on avoiding high gift tax? Tax-efficient gifts on paper? We are happy to advise on such issues. Contact us directly if you would like to understand the possibilities. You are assured of real and implementable advice for your specific situation.