Transfer money from a donation in an EU country to a German account. Is it necessary to declare the donation in Germany?
My wife (Polish citizen, residing and working in Germany since 2008) is to receive a gift of approximately 35,000 EUR from her parents in Poland. The money is to be deposited into my wife's bank account in Poland. Since the gift falls within the tax-free threshold in Poland, no gift tax will be due in Poland. The gift should be reported to the tax authorities in Poland.
Do we also need to report this gift to the German tax authorities, or must the gift be declared as additional income in the next income tax return (if so, how)? Should we therefore expect a higher tax burden? Is there anything specific to consider if my wife then transfers the money to her German bank account (for which I also have authorization), specifying a certain purpose for the transfer?
Thank you and best regards.
