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Gift Exemption 2021

Parents or grandparents who want to donate money to their (grand) children must take into account different rules. For example, the law sees parents as one donor. As a donor, you can donate € 5,515 tax-free every year. It is also possible to make one-off use of an increased gift tax exemption.

Three increased exemptions

Three increased exemptions are possible:

• a donation of a maximum of € 103,643 for the owner-occupied home;
• a donation of up to € 26,457 for free use;
• a donation of up to € 55,114 for an expensive study.

Increased exemption for your own home:

If you are divorced and both want to donate for the owner-occupied home, you must add up the amounts of the donations. The total donation amount must remain below the maximum amount of € 103,643. The age of the recipient of the increased donation must be between 18 and 40 years old. The recipient may use the amount in four ways:

• for the purchase or renovation of an owner-occupied home.
• for the repayment of the home acquisition debt.
• for the repayment of the residual debt of an owner-occupied home.
• for the redemption of leasehold, building or confinement (right to immovable property of another) of own home.

Gift exemption flowchart

If you are going to donate an amount of money to your child and this is used for the purchase, redemption or renovation of a house, there are still some conditions attached to this. As mentioned, you may donate a maximum of € 103,643 tax-free. So if you’ve made a tax-free donation before, keep this in mind. You can download a flow chart below for your convenience. If you follow the steps in the diagram, you will see exactly which conditions apply to you.

Know more?

Would you like to know more about the gift exemptions 2021 or do you need help? Please contact Chaterfinance, via telephone number 070-7522837 or send an email to info@chaterfinance.nl