lahjavero

Lahjavero is a tax levied on gifts received in Finland. It is paid by the recipient of the gift, not the donor. The tax applies to gifts given by individuals to other individuals. Gifts from legal entities to individuals are generally not subject to lahjavero, but instead taxation as income. There are certain exemptions and thresholds that determine when lahjavero is applicable.

The tax rate is progressive, meaning that the higher the value of the gift, the higher the tax rate becomes. The rates are divided into two categories depending on the relationship between the donor and the recipient. Gifts between spouses or from parents to children have more favorable tax rates than gifts from other relatives or unrelated individuals. For example, a gift from a parent to a child below a certain threshold is tax-free. Gifts exceeding this threshold are taxed at a lower rate compared to gifts from, say, a grandparent to a grandchild, or from a friend.

The value of the gift is determined by its market value at the time of gifting. Gifts received within a three-year period from the same donor are aggregated for tax purposes. This means that if multiple gifts are received from the same person within a three-year timeframe, their combined value is considered when calculating the tax liability. The Finnish Tax Administration (Verohallinto) is responsible for administering and collecting the lahjavero. Tax returns for gifts must typically be filed within a specific timeframe after the gift has been received. Failure to report a gift or pay the associated tax can result in penalties.