Gift of money between non-parents: reduce taxation by 60%
The tax lawyers at LEXPERTAX are experts in the taxation of money gifts and are familiar with tax strategies to reduce gift tax by 60% applicable to money gifts.
Go from 60% tax to 37.5% tax with our team of specialists in tax law.
What is a financial donation?
A money gift is when a person, called the donor, voluntarily transfers full ownership of a sum of money to another person, called the donee.
A money gift can be made by handing over cash but also by cheque or bank transfer.
Money gifts fall under the category of manual gifts. As such, a money gift may be subject to gift tax.
What is a gift of money between non-relatives?
A money gift between non-relatives means that the donor (the giver) has no family relationship with the donee (the receiver), or that this family relationship is beyond the 4th degree.
What is the tax applicable to the gift of money between non-parents?
A money gift to a child, grandchild, or great-grandchild is exempt, under certain conditions, from gift tax up to 31,865 euros.
However, a money gift between non-relatives does not qualify for this exemption. Additionally, even though a money gift between direct-line relatives benefits from progressive tax rates up to 45%, the taxation of a money gift between non-relatives is much heavier, as it is subject to a fixed rate of 60%.
Can we reduce gift tax by 60% on a money donation?
Some tax strategies allow optimizing the taxation applicable to money gifts and significantly reducing the gift tax applicable to money gifts.
Our tax lawyers are experts in the taxation of money gifts and know the tax strategies to reduce the 60% gift tax applicable to money gifts.
Gift of money between non-parents: reduce taxation by 60%
The Role of the Tax Lawyer in Money Gifting
Money gifting must be done with caution to comply with all legal and declarative obligations related to this type of transaction.
The role of the tax lawyer is to accompany the money gifting operation by advising on the best tax strategies tailored to the taxpayer’s situation to ensure that the gift is made under the best tax conditions.
The role of the tax lawyer is also to assist the taxpayer in fulfilling declarative obligations. Our tax lawyers handle all declarative obligations related to money gifting for you and help you reduce the tax on money gifts.
