Are gifts between spouses tax-free?
July 22, 2023 | 60,00 EUR | answered by Lina Walter
Dear tax advisor,
My name is Jürgen Krausmüller and I am reaching out to you because I have a question regarding gift tax. My wife and I are planning to make gifts to each other in order to optimize our assets. Now, I am wondering whether gifts between spouses are tax-free or if gift tax applies in this situation.
Our current situation is as follows: My wife and I have been married for 10 years and own a house and various financial investments together. We would like to gift a portion of our assets to save on taxes and to provide something to our children during our lifetime. However, we are unsure whether gifts between spouses are tax-free or if we should expect tax implications.
Our concern is that we are not able to accurately assess the tax implications of gifting between spouses and fear that we may have to make unexpected tax payments. Therefore, we would like to know from you whether gifts between spouses are tax-free or if there are certain tax-free allowances or regulations to minimize gift tax.
Could you please provide us with possible solutions on how we can optimally structure gifts between spouses for tax purposes?
Thank you in advance for your support and advice.
Sincerely,
Jürgen Krausmüller
Dear Mr. Krausmüller,
Thank you for your inquiry regarding gift tax between spouses. I am happy to explain to you the tax aspects and regulations that are relevant in your case.
In general, gifts between spouses are exempt from gift tax according to § 13 para. 1 No. 4 of the Inheritance Tax Act (ErbStG). This means that you can gift assets to your spouse without incurring gift tax. This regulation applies regardless of whether it is money, real estate, or other assets. It is possible to gift assets within the marriage tax-free.
However, there are limits and special considerations to keep in mind. Gifts between spouses are only tax-free if they are made within the framework of marital property settlement. This means that the gift must be related to the marital property regime, e.g. within a marriage contract or community of accrued gains. If the gift is not made within the framework of marital property settlement, gift tax may apply.
There are also tax-free allowances that should be considered when making gifts between spouses. The tax-free allowances for spouses are currently at 500,000 euros. This means that gifts up to this amount are tax-free. If the value of the gift exceeds this allowance, gift tax will apply. The tax rates and allowances may vary depending on the federal state, so it is advisable to seek individual advice on this matter.
To optimize gifts between spouses from a tax perspective, I recommend seeking professional advice. A tax advisor can work with you to develop the best strategy to gift your assets in a tax-optimized way. This can include considerations such as utilizing tax-free allowances or dividing assets.
I hope that this information has been helpful to you, and I am available to answer any further questions you may have.
Sincerely,
Lina Walter
