donation
September 3, 2013 | 25,00 EUR | answered by Dipl.-Kfm. Frank-Olaf Illiges
I would like to gift my grandson 200,000 or 250,000€. I understand that gifts up to 200,000€ are tax-free in Germany. My only problem is that my grandson is based in Switzerland, so I am not sure how this will be treated. I am based in Germany.
Dear inquirer,
Thank you for your inquiry, which I will gladly answer taking into account your input and the rules of this platform.
Please note that my explanation is based on the information provided, and that adding, omitting, changing details, or ambiguity in the information can alter the tax result.
The gift to your grandson is subject to gift tax in Germany, as the donor has a residence in Germany at the time of the gift and is therefore considered a resident taxpayer (§ 2 Abs. 1 Nr. 1a Inheritance Tax Act (ErbStG)). The residence of your grandson is irrelevant for the taxation of the gift in Germany in this case.
Due to the exemption amount of 200,000.00 EUR (§ 15 Abs. 1 Tax Class I No. 3 ErbStG in conjunction with § 16 Abs. 1 No. 3 ErbStG), the excess amount of the gift is subject to gift tax in Germany.
Sincerely,
Dipl.-Kfm. Frank-Olaf Illiges
Tax Advisor
Am Wieksbach 55
33378 Rheda-Wiedenbrück
Phone: 05242/4055666
Fax: 05242/4055677
e-mail: office@illiges-steuerberatung.de
Website: www.illiges-steuerberatung
