Gift Tax (Schenkbelasting)
Gift tax (schenkbelasting) is due when you receive a gift that exceeds the annual exemption. The exemption and rate depend on the relationship between the giver and the receiver. In 2025, parents may gift approximately €6,633 tax-free to each child per year. For grandchildren and other recipients, the exemption is approximately €2,658. Additionally, there is a one-time increased exemption for children between 18 and 40 of approximately €31,813 (free to spend) or approximately €66,268 if the money is used for a home or education. The rates are the same as inheritance tax: 10% to 20% for children, 30% to 40% for others. The recipient of the gift is the one who must file the declaration and pay the gift tax, unless otherwise agreed. The declaration must be filed before March 1 of the year following the gift.
Example
Your parents gift you €50,000 for purchasing a home. You are 32 years old and have not previously used the increased exemption. The increased exemption for a home is €66,268, so the full €50,000 is exempt and you pay €0 in gift tax.
Why does this matter?
Gift tax plays a major role in wealth transfers within families. By smartly using annual and one-time exemptions, you can save a lot of tax. Combine gifts over multiple years for the best result.
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