What counts as a gift
A transfer for no adequate consideration can be a taxable gift: cash, securities, property, debt forgiveness or value shifted through a company. Indirect transfers count too.
Why timing matters
Personal allowances can renew after a statutory period. Planned transfers may therefore use allowances more effectively than a single late transfer, while retaining enough security for the donor.
- Value the asset before signing.
- Clarify who bears taxes and costs.
- Document reservations such as usufruct.
- Review foreign reporting in both countries.
Reporting is part of the transaction
Banks and notaries may report certain events, but the parties can still have their own notification duties. Do not assume that a notarised deed completes every tax step.
Frequently asked
Are gifts from parents tax free?
They are tax free only within the applicable allowance and conditions; excess value can be taxed.
Can I give property and keep using it?
A reserved usufruct or right of residence may be possible and can affect valuation, but it needs careful legal drafting.
Do gifts from abroad count?
They can if German residence or German assets bring the transfer within German gift tax.
This guide is general information on German tax law, not advice on your individual case. Rules and figures change with each tax year.