Schenkungsteuer

Schenkungsteuer, or gift tax, is a tax that taxes gratuitous transfers of assets. It applies when a person transfers property to another without receiving compensation. In many jurisdictions the tax is levied on the recipient (the donee), but reporting and administrative obligations can involve the donor as well. The tax base is generally the value of the transferred assets at the time of the gift, subject to deductions, exemptions, and special rules.

In Germany, the gift tax is part of the unified Erbschaftsteuer- und Schenkungsteuergesetz (inheritance and gift tax law). The framework distinguishes three tax classes that reflect the relationship between donor and recipient: Class I (close relatives such as spouses, children, and grandchildren), Class II (more distant relatives and certain others), and Class III (all other recipients). Each class has its own tax-free allowances and progressive tax rates. The rates increase with the value of the gift and depend on the class of the recipient.

There are exemptions and reliefs for specific transfers, particularly for close family members. Special provisions exist for business assets and for ongoing family-owned enterprises, which can provide reliefs or deferrals under certain conditions. Valuation rules determine the taxable amount, with particular methods for real estate, securities, and intangible assets.

Administration and compliance require timely reporting to tax authorities, assessment of the correct tax class and allowance, and payment of the tax. International aspects can arise if donors, recipients, or assets lie outside the jurisdiction, potentially triggering cross-border rules and double taxation considerations. The Schenkungsteuer framework is regularly updated to reflect economic and policy changes.