Gift tax

Gift tax can arise when assets (e.g. money or real estate) are transferred during a person's lifetime. It is particularly relevant in the case of asset successions within the family or business successions.

When calculating the amount of gift tax, the relationship between the donor and the donee is decisive. The law provides for three different tax brackets for this purpose. For example, tax class I applies to transfers between spouses or between relatives in a straight line (transfers from parents or grandparents to children or grandchildren), tax class II applies to transfers between siblings and tax class III applies to transfers between non-relatives.

This classification according to tax class is relevant for the amount of tax-free allowances and the applicable tax rate. For example, the following tax-free allowances apply to gifts:

The decisive factor for the exemption limits is that all acquisitions between the same parties within a ten-year period are added together. This is particularly relevant for inheritance cases, as in the event of the donor's death, their previous gifts to the heir within the last ten years prior to the inheritance, so-called prior gifts, are included in the calculation of the total acquisition.

After deducting the relevant tax-free amount, the relevant tax rate is applied to the remaining taxable acquisition value, which differs according to the tax class and the amount of the acquisition.

The tax rates are structured as follows: